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.

Jamie Glenn, Co-Founder & COO, Knock

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?

The home equity market is on track for continued growth over the next 12–18 months, driven by record levels of tappable equity that are prompting homeowners to rethink not just how they move, but how to make the process less stressful and more financially strategic. At Knock, we’re seeing strong demand from homeowners looking to unlock equity without disrupting their existing mortgage—enabling them to make more competitive offers and move on their own terms.

The key trends and risks we’re watching include:

• Interest rate volatility and its impact on borrower behavior
• Growing adoption of alternative equity products, such as bridge loans and other non-traditional financing solutions

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

Institutional appetite for home equity investments has matured significantly, with investors increasingly seeking assets with resilient credit profiles and shorter durations—characteristics that define bridge and home equity products like ours. The most compelling opportunities are in products that reduce borrower friction, address liquidity gaps in a high-rate environment, and enable upfront equity access for non-contingent offers or pre-listing renovations. Knock’s bridge loan model delivers on all three, while providing investors with credit-enhanced structures, robust data transparency, and scalable origination channels.

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

Originators are moving toward more embedded models—meeting borrowers where they are in the homeownership journey, whether that’s through their real estate agent, digital platform, or loan officer. At Knock, we’ve doubled down on our agent and loan officer partner model and enhanced borrower education tools to meet a growing demand for transparency and flexibility. We’re also leveraging proprietary pre-qualification technology to underwrite faster and with greater accuracy, ensuring we adapt quickly to shifting credit conditions and borrower expectations.

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

Technology is reshaping the way risk is assessed and managed. At Knock, we use machine learning models to predict loan duration and market risk by geography and seasonality, helping us price loans more precisely and manage liquidity proactively.

On the servicing side, automated triggers tied to market listings, price changes, or time-on-market allow us to intervene and support customers more effectively. Leveraging AVMs, and real-time property data has significantly reduced cycle times and improved credit outcomes.

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

We’re closely monitoring how regulators define and differentiate between traditional home equity products and newer alternatives, such as shared appreciation agreements and bridge equity solutions. There’s increasing scrutiny around marketing practices and disclosures—especially as non-bank lenders continue to gain market share. At Knock, we proactively prioritize clear consumer disclosures and conservative underwriting to stay ahead of potential regulatory changes, while continuing to build trust with borrowers and partners.

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

The secondary market is still developing, but we’re seeing encouraging signs of growth—particularly among structured investors seeking whole-loan or securitized exposure to short-duration, high-quality home equity assets. Liquidity is improving for differentiated products with strong performance history and transparent servicing practices. At Knock, we believe that product standardization, clear data reporting, and robust servicing platforms will be key to broadening the investor base and reducing execution spreads over time.

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

Borrower demand remains high for solutions that provide flexibility without refinancing into a higher-rate mortgage. We’re seeing growing interest in “bridge equity” products that deliver upfront liquidity for a variety of needs—purchasing a new home, prepping a listing, or paying off debt. Knock’s bridge loan is designed to align with how consumers want to move—fronting them their equity before the sale,then settling once the home sells. This structure reduces financial strain and increases competitiveness in the purchase market.

8. 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?

Over the next 3–5 years, home equity products will continue moving closer to the center of consumer finance. The most successful players will be those who create borrower-friendly, tech-enabled solutions that can scale through partnerships and secondary market execution. Success will be defined by how well lenders can personalize offerings, reduce time-to-fund, and provide transparency across the loan lifecycle. At Knock, we’ve spent the last decade building a platform, refining our product, and enhancing the experience for lenders, agents and consumers —balancing innovation, risk management, and consumer empowerment.

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.

Janko Nedic, Co-Founder, Nebra Capital

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? The HEI space continues to benefit from the significant home price appreciation of recent years, alongside persistently elevated interest rates. While rates now appear to be on a gradual downward trajectory - supporting existing holders through positive convexity - this may create headwinds for new origination activity. That said, with HEIs still accounting for only a small fraction of total annual home equity extraction (around ~1%), the market has considerable room for expansion.

2. How has institutional appetite for home equity investments evolved recently, and where do you see the most compelling opportunities today? The introduction of DBRS's inaugural rating methodology represents a significant milestone, particularly for investors who require NRSRO-rated paper. This increased institutional accessibility and may pave the way for broader participation over time. Looking ahead, HEI-focused REITs could become interesting - particularly in metro areas with relatively low rental yields.

3. What innovations or shifts are you seeing in origination strategies, and how are originators adapting to changing borrower behavior or credit conditions? Efficiently originating high-quality assets remains a key differentiator in the market. As homeowner expectations evolve and credit conditions fluctuate, originators that effectively integrate new technologies - such as automated underwriting, enhanced data validation, and digital customer engagement tools - while maintaining regulatory compliance are likely to be better positioned. Innovation in sourcing, pricing, and borrower education will also play a growing role in shaping competitive advantage.

4. How are technology and data analytics transforming underwriting, servicing, or risk management in the home equity space? Unlike traditional consumer finance, where behavioral modeling and earl warning systems are well-established tools, the home equity space has historically relied more heavily on the presence of a hard asset as collateral. While there have been improvements in areas such as AVMs, property-level data aggregation, and digitized underwriting workflows, technology adoption in HEI remains relatively early-stage. As the asset class matures, there may be opportunities to integrate more sophisticated analytics, but the fundamental underwriting remains rooted in asset value and structure rather than homeowner cashflows by design.

5. What regulatory developments—either current or anticipated—are having the greatest impact on your business or the broader home equity ecosystem? One of the most closely watched developments is the question of whether an HEI constitutes a mortgage under federal or state law? The recent Ninth Circuit ruling, which addressed this question in the context of WA state, adds to a growing patchwork of interpretations and underscores the need for regulatory clarity. As the market expands, the establishment of a consistent framework - whether at the federal or state level - would be welcomed by many industry participants. A clear and supportive regulatory approach would strengthen long-term confidence in the asset class, broaden investor participation, and enhance consumer protections, all while enabling HEIs to continue addressing a meaningful financial need for homeowners.

6. How is the secondary market for home equity products evolving, and what are the implications for liquidity and pricing? The secondary market for HEIs remains relatively nascent and highly relationship driven. While activity is currently limited and opportunistic - more "by appointment" than broadly distributed - the foundational infrastructure is beginning to take shape. With an expected $2-2.5 billion in securitization volume this year, liquidity is still constrained but growing. As issuance scales, regulatory frameworks mature, and a broader set of participants enters the space, we could see the emergence of more structured secondary trading formats. Whether through standard bid lists or other mechanisms, we expect improved market depth and pricing transparency to follow - both for whole contracts and for securitized bonds.

7. What are you seeing in terms of borrower demand, and how are product structures being tailored to meet evolving homeowner needs? From home improvement and liquidity access to retirement planning and debt consolidation, it's clear that demand is not one-size-fits-all. Product structures are evolving accordingly, with adjustments around share limits, duration, pricing mechanics, and shared appreciation terms to meet a wider spectrum of homeowner needs. While regulatory guidance to date has been limited, a more consistent framework would help shape product design and support broader market development. As the space evolves and the regulatory framework becomes clearer, we expect the product to become more standardized - with a defined set of key parameters that can be adjusted to suit specific homeowner needs and regional characteristics.

8. 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? A clear regulatory framework, broad institutional adoption of the asset class, and a 10x in annual originations? I hope all three.

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.

Michael Micheletti, Chief Marketing Officer, Unlock

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?

I believe the outlook remains strong as home values are expected to appreciate, albeit at a more sustainable pace, across most of the U.S. And for the home equity agreement (HEA) category specifically, our growth tends to outpace that of traditional debt-based products given our earlier stage in the market and lower product awareness. Unprecedented market conditions are fueling the need for HEAs in the current economy, so there are a lot of trends we keep a close eye on – one of which is new mortgage lending rates. With rates where they are now, we’re seeing many people would rather stay put, keep the historically low interest rates secured during of the pandemic, and tap into the equity they’ve built to address other financial needs.

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

Investors are increasingly attracted by the compelling return of home appreciation and scalability of the asset class. We’re seeing strong interest from insurance companies, asset managers, private credit funds, and pension funds seeking differentiated yield in an increasingly competitive environment. The most compelling opportunities today lie in forward flow agreements, rated securitizations, and tailored deals with structured risk-return profiles across the capital stack.

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

Most every shift in origination strategy is tied back to consumer expectations around technology and ease-of-use. Whatever we can do to make the application and approval process more streamlined and automated becomes part of our roadmap– because it’s becoming the baseline expectation across real estate and financial services. That includes everything from accurate online pre-qualifications to agentic AI for 24/7 support.

4. What regulatory developments—either current or anticipated—are having the greatest impact on your business or the broader home equity ecosystem?

Certain states are paying closer attention to shared equity products, and that’s a good thing when it leads to productive regulation and the opportunity for consistent requirements so that all stakeholders – consumers, regulators and the industry – are on a level playing field. We support requirements relating to licensing, supervision and reporting, disclosures and protecting consumers from unfair business practices. Along with our industry peers, Unlock is a founding partner of the Coalition for Home Equity Partnership (CHEP) that’s working to advance these conversations and advocate for tailored regulations as our category matures.

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

The secondary market for shared equity products is rapidly maturing. In 2024, over $1 billion in rated HEA / HEI securitizations were completed, and repeat issuers continue to expand and diversify the institutional investor base. We expect over $2 billion in issuance in 2025, with an even greater volume in 2026. Spreads and financing costs continue to improve with broader investor adoption. As issuance increases and more historical performance data becomes available, we expect tighter secondary spreads and more efficient execution—and liquidity is steadily improving as more investors and dealers engage. For Unlock, this evolution enables more attractive pricing for our homeowners and deeper relationships with capital partners.

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

A recent independent survey found that a majority of Unlock homeowners had good access to other forms of financing and chose our HEA from a broader consideration set. When asked why, it’s the flexible terms of our product structure that make up the top three reasons—no monthly payments, access to significant funds, and easy to apply. That flexibility makes us well positioned to meet evolving homeowner needs and the growing demand for equity-based financing solutions. This summer, we had our highest production month ever in terms of how many homeowners we helped access their equity, and the amount of those fundings, and we expect that upward trend to continue.

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?

We believe the category is on a path to becoming a mainstream asset class. In the next 3-5 years, we expect to see substantial growth in origination volumes as homeowner awareness increases, and they understand how an HEA works and can help them achieve their financial goals. Success will be defined by: 1) Education, transparency and continued positive homeowner outcomes; 2) Investor confidence built on cycle-tested returns; and 3). Consistent, effective state-level regulations that support mainstream adoption.

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.