Early intelligence for home equity market leaders

As the $30+ trillion home equity market continues its unprecedented growth trajectory, industry leaders are already sharing valuable perspectives ahead of IMN's HEI & Home Equity Products conference. Before gathering at the Austin Marriott Downtown on September 8-9, our distinguished speakers offer early market intelligence on everything from institutional appetite to adapting with regulatory developments—giving you a competitive edge in this dynamic landscape. Don't miss this premier gathering where 400+ senior executives will connect and chart the industry's future. Secure your place by August 15 to save $400 on registration for the definitive destination in home equity debt and equity products - register today!

David Shapiro, CEO & Founder, EquiFi

1. What is your outlook for the home equity market over the next 12–18 months, and what key trends or risks are you watching most closely? Homeowner demand is at an all-time high due to limited product choices and higher capital costs. In the short term, the market will continue to be focused on credit repair or a “last hope” homeowner facing having to sell their home in a mediocre market.

2. How has institutional appetite for home equity investments evolved recently, and where do you see the most compelling opportunities today? There is a very limited number of investors in the HEI space. Two things impact that: lack of cash flow to the investor when compared to loan products, regulatory concerns with certain HEI products, and a limit to the credit risk an asset manager can take in a portfolio.

3. What innovations or shifts are you seeing in origination strategies, and how are originators adapting to changing borrower behavior or credit conditions? From a product perspective, we focus more on our loan product suite with a home value element.

4. What regulatory developments—either current or anticipated—are having the greatest impact on your business or the broader home equity ecosystem? We feel our HEI product has the least regulatory risk of any product on the market. No term in years as opposed to a term in years, a discounted home value as opposed to a percentage of the entire home, and consumer protection as opposed to an interest rate cap.

5. What are you seeing in terms of borrower demand, and how are product structures being tailored to meet evolving homeowner needs? We target the much larger TAM of the loan market vs. the very limited TAM of the HEI space.

6. Where do you see the home equity asset class heading in the next 3–5 years, and what will define success for participants in this market? There is no question in my mind that the demand will grow in that period. The topic originators don’t want to talk about is how to profitably originate their products regardless of securitizations.

Mahesh Shetty, CEO, ILE Homes

1. What regulatory developments—either current or anticipated—are having the greatest impact on your business or the broader home equity ecosystem? The prospective IPO’s of Freddie/Fannie, if real, can be an existential threat to the current HEI companies over the next 3-5 years. Competition in the mortgage space will naturally lend itself to the GSE’s broadening their footprint with much lower cost of capital and monetizing a customer base that potentially already has a GSE mortgage.

Douglas Riedeman, Partner, Intuitive Capital Strategies

1. How are technology and data analytics transforming underwriting, servicing and risk management in the home-equity space?

Underwriting: We’re tapping AI-powered credit engines that merge bureau scores with streamlined income and asset checks—auto-extracted pay stubs and IRS-transcript pulls—with next-gen, satellite-driven home valuations built on hyperlocal signals (school ratings, crime trends, recent comps). The result: faster, more accurate loan decisions, pinpoint valuations and fewer surprises on collateral.

Servicing: A 24/7 digital borrower portal tackles payment changes, payoff quotes and basic financial guidance, freeing our team to focus on exceptions. Behind the scenes, robotics handle posting, document retrieval, escrow reviews and compliance checks — driving down errors, cycle times and cost.

Risk Management: Real-time credit updates, payment histories and macroeconomic signals feed predictive models that spot stress weeks before delinquency. We then overlay parcel-level flood, wildfire and storm maps to stress-test each loan, and employ anomaly-detection engines to stop synthetic IDs, forged docs or account-takeover attempts in their tracks — protecting the portfolio today and tomorrow.

Peter Mazonas, CEO, NatEquity

1. What is your outlook for the home equity market over the next 12–18 months, and what key trends or risks are you watching most closely? Tariffs and hyperinflation in household core insurance, utility and maintenance costs are beginning to significantly strain the disposable income of middle-class Americans living on a fixed income. At the same time legacy banks are not loosening their lending to this large segment of homeowners. The next year-to-three years will see the beginning of the “Golden Age” for HEI product offerings. Automobile, insurance, utility and consumer products companies will stop absorbing the cost of tariffs in 2026 and pass those “taxes” on to homeowners at a time when wages will stagnate. HEI lenders must have a clear strategy to avoid resultant pitfalls.

2. How has institutional appetite for home equity investments evolved recently, and where do you see the most compelling opportunities today? The recent Executive Order opening up the small investor 401k market to alternative asset investment and other real estate tied lending will allow bankers to bundle products for sale to these markets. The question is will bundlers limit these to regulated product classes? Rated and regulatory complaint securitizations that can be properly valued and accrete value are compelling to pensions, endowments and insurance company institutional buyers.

3. How are technology and data analytics transforming underwriting, servicing, or risk management in the home equity space? Agentic AI agents are taking the guess work out of classifying disparate structured data to facilitate “clean” data analytics. Strong predictive analytical tools like Snowflake allow underwriters, servicers and portfolio managers to anticipate risk and proactively take action. Customer focused risk management is not cheap, but it must be built into a successful business model.

4. What regulatory developments—either current or anticipated—are having the greatest impact on your business or the broader home equity ecosystem? This summer at a PwC webinar, SEC Commissioner and Head of Enforcement Mark Uyeda stated that proper valuation of offerings was key on the SEC list of critical enforcement issues. SEC Rule 2a-5 gives the SEC broad authority to enforce GAAP NPV of future cash flow valuation treatment of real estate and lending products. Commissioner Uyeda singled out enforcement of compliant disclosure and valuation of products sold to seniors. The August 7^th 9^th Circuit Court of Appeals decision finding the Unison product to be both a loan and a reverse mortgage should have far reaching implications for all unregulated HEI products and especially companies offering both regulated and unregulated HEI products to homeowners over age 62 (the reverse mortgage cutoff age).

5. How is the secondary market for home equity products evolving, and what are the implications for liquidity and pricing? Secondary market liquidity comes from the combination of rated products that can consistently be valued under GAAP and SEC mark-to-fair value rules. For real estate and lending products this is the discounted NPV of predictable future portfolio cash flows. A rated product sold to the public that gets a 30-40% valuation haircut at first audit is a litigator’s dream that must be avoided.

6. What are you seeing in terms of borrower demand, and how are product structures being tailored to meet evolving homeowner needs? Borrower demand come in two buckets: 1) Those having an urgent need for a lump sum and 2) prudent borrowers who need a “fresh start” and then additional monthly income to meet expenses and have a cushion. NatEquity’s regulated home equity sharing products focus on the second category of borrowers in the senior market. This “fresh start”, then additional predictable monthly income for as long as you live in your home is where the largest growth segment of the borrower market is going.

7. Where do you see the home equity asset class heading in the next 3–5 years, and what will define success for participants in this market? The last seven months have brought us high tariffs and the Big Beautiful Bill. This front-end push to change America will have a long tail. While the US economy in general will sputter and level off, the vast middle class homeowner segment is sitting on newfound wealth from COVID and post COVID home value increases. Provided there isn’t an unexpected collapse in the housing market, this majority of Americans will have to tap their home equity to maintain a lifestyle or just to survive. HEI lenders will have to thread the needle between high risk/high reward lending and a middle of the road approach. Either way composite rates will be higher because of perceived risk.

Jim Park, Broker Owner, Park Place

1. What is your outlook for the home equity market over the next 12 to 18 months, and what key trends or risks are you watching most closely?

The home equity market is expected to keep growing but at a slower pace. Homeowners now have around 35 trillion dollars in equity, thanks to rising property values over the past few years. This creates a huge pool of money they can tap into. As interest rates stabilize, more homeowners are expected to use tools like HELOCs and equity loans instead of refinancing their first mortgage. However, there are some risks to watch out for, such as falling home prices in some areas, rising consumer debt, and possible job losses if the economy slows down.

2. How has institutional appetite for home equity investments evolved recently, and where do you see the most compelling opportunities today?

Big investors are increasingly interested in home equity investments. They are drawn to the stable returns and relatively low risk. There has been a surge in investor demand for products like shared equity agreements and securitized HELOCs. Some companies are even packaging these into bond-like investments. Right now, the most exciting opportunities are in second-lien loans, equity-sharing deals, and new platforms that help homeowners access equity without taking on more debt.

3. What innovations or shifts are you seeing in origination strategies, and how are originators adapting to changing borrower behavior or credit conditions?

Lenders are using more technology to make applying for home equity products easier. Borrowers can now get prequalified online, get fast appraisals, and verify their income automatically. Many lenders are offering standalone HELOCs because most homeowners do not want to refinance their current low-rate mortgage. Equity sharing products are also becoming popular because they do not require monthly payments.

4. How are technology and data analytics transforming underwriting, servicing, or risk management in the home equity space?

Technology is helping lenders make faster and smarter decisions. Advanced data tools can now analyze creditworthiness using both traditional and alternative data sources. AI is also being used to predict borrower behavior and flag potential problems before they happen. Servicers are using automation to handle large volumes of loans more efficiently while improving the customer experience.

5. What regulatory developments are having the greatest impact on your business or the broader home equity ecosystem?

Regulators are paying closer attention to new home equity products, especially equity-sharing agreements. Some states have started reviewing whether these deals are fair and transparent. The Consumer Financial Protection Bureau is also looking into how fees and terms are disclosed to borrowers. We expect new rules in the next year or two that may require clearer disclosures and more oversight.

6. How is the secondary market for home equity products evolving, and what are the implications for liquidity and pricing?

More investors are buying home equity loans on the secondary market. This means lenders can offer more products and better rates because they have a reliable way to sell those loans. Recently, companies like Point have sold hundreds of millions of dollars in equity agreements to investors. As this market matures, pricing will likely improve, but economic uncertainty could still affect spreads and demand.

7. What are you seeing in terms of borrower demand, and how are product structures being tailored to meet evolving homeowner needs?

Demand is strong. Many homeowners are using HELOCs and equity loans to pay for renovations, consolidate debt, or cover large expenses. To meet different needs, lenders are offering flexible products, like interest-only payment options or hybrid loans with both fixed and variable rates. Some companies are offering no-payment equity sharing models that are attractive to people who want access to cash without taking on monthly bills.

8. Where do you see the home equity asset class heading in the next 3 to 5 years, and what will define success for participants in this market?

Home equity is going to become a major asset class with more standard rules and wider participation from large financial institutions. Technology will play a big role in scaling operations and improving the borrower experience. The most successful companies will be those that can offer great service, stay compliant with regulations, and create flexible products that work for different types of homeowners.

Join the premier destination for home equity's elite - register today for IMN's HEI & Home Equity Products Fall conference, Sept 8-9 at the Austin Marriott Downtown.