Why it Matters:
- Black Knight Inc. reported that 80% of outstanding mortgages have an interest rate of 4.5% or less, leaving many borrowers “frozen in place” and reluctant to seek out new homes with higher interest rates.
- Tappable home equity has increased by a whopping $3.4 trillion in the last 3 years, according to Black Knight.
- Home equity products offer lenders and LOs a way to serve these customers while adding value to the borrower relationship.
- In his recent Current Insights article, Stratmor Group principal Tom Finnegan observed: “Lenders should consider the strategic value of offering home equity lending products. The ability to say ‘yes’ offers an opportunity to make the borrower happy and increase the company’s market share and profitability over time.”
For more insights into the pros and cons of home equity loan products, check out Finnegan's article “Home Equity Lending: Opportunity, Necessity or Distraction?”
Pat Sherlock is the founder of QFS Sales Solutions, an organization that helps organizations improve their sales talent management and performance. For more information, visit https://patsherlock.com.
