Tapping into Home Equity: MBA Q&A with BSI Financial Services’ Allen Price

MBA NewsLink recently interviewed Allen Price, senior vice president with BSI Financial Services, about how high rates, rising home equity and product innovation are reshaping the second-lien market and what that means for lenders, investors and servicers.

MBA NewsLink: Home equity lending remains strong despite sluggish originations and refis. What’s driving demand right now?

Allen Price: It’s absolutely strong—and for good reason. In today’s high interest rate environment, very few homeowners want to refinance their first mortgage. If you locked in a 3% rate in 2021, you’re not going to trade that for 7% unless you absolutely have to. But consumers still need access to cash for renovations, education, debt consolidation, and other life expenses. That’s created a natural pivot toward home equity lending.

We’re also seeing a shift in how homeowners leverage their assets without disrupting their favorable primary mortgage terms. Increasingly, they’re turning to second-lien products like HELOCs, closed-end seconds, and now, shared equity agreements.

MBA NewsLink: How big is the opportunity?

Allen Price: Huge. Depending on which data set you reference, there’s somewhere between $25 trillion and $30 trillion in untapped home equity in the U.S. housing market. That’s a staggering figure. As an industry, we have an opportunity—and I’d argue a duty—to help homeowners tap into that wealth in responsible, innovative ways.

MBA NewsLink: Let’s talk about those innovations. Shared equity agreements (HEIs) are drawing a lot of attention. Can you walk us through how they work?

Allen Price: A shared equity agreement, sometimes called a home equity investment or HEI, isn’t a loan. It’s a financial structure where the homeowner receives a lump-sum payment today in exchange for agreeing to share a percentage of the home’s future appreciation.

There’s no monthly payment, no interest rate, and no debt obligation. The homeowner doesn’t owe anything until they sell the home, refinance the first mortgage, or reach the end of the term, which is often 10 to 30 years. At that point, they pay back a percentage of the home’s appreciated value, not a fixed dollar amount.

It’s a compelling option for homeowners who have a lot of equity in their homes but are tight on cash, and who don’t want to increase their monthly debt. But consumers need to be educated about it so the long-term trade-offs are clearly understood. Probably the biggest trade-off is the fact that the homeowner will be giving up a percentage of their home’s future value, depending on the terms of the shared equity agreement.

MBA NewsLink: Are many lenders and investors offering these types of products?

Allen Price: There are a handful of originators that offer them right now, but four main players dominate the market, including, in no particular order: HomeTap, Point Digital Finance, Unlock Technologies, and Unison. All four have done an outstanding job educating homeowners and refining their products.

At BSI, we service shared equity products on behalf of four of the top five originators as well as warehouse lenders and capital investors backing these assets.

MBA NewsLink: From a servicing standpoint, how different are HEIs from traditional second liens?

Allen Price: They’re very different. There’s no monthly billing or collections cycle, so the workflow is not loan-based. Instead, servicing involves monitoring term durations, tracking changes in ownership or lien positions, and communicating with homeowners about key contract triggers, such as refinancing or selling their home.

You’re also dealing with more nuanced calculations when it comes time to settle. What does the homeowner owe? What’s the agreed appreciation share? Is there a cap or floor in the contract?

MBA NewsLink: You also mentioned hybrid products. What’s happening there?

Allen Price: Hybrid second-lien products are the next frontier. These combine aspects of traditional second mortgages—like a fixed amount and lien position—with shared equity features. For example, Unison has brought to market a hybrid closed-end second-lien loan product that incorporates a shared equity component. This product has been well-received by the market and is an excellent example of the innovation that many of these fintechs are bringing to the market. 

From a servicing perspective, hybrid products create even more complexity. But they also give homeowners greater flexibility to meet their financial goals.

MBA NewsLink: Are other originators exploring these hybrid structures?

Allen Price: Yes. There’s a lot of ideation happening across the board. While Unison was first to market with this hybrid model, I’d be surprised if they remain the only one for long.

More originators and investors are taking this space seriously. All the major originators are exploring ways to differentiate and meet evolving consumer demand. And from the investor side, we’re seeing more securitizations of shared equity products. Importantly, those deals are now getting rated. That’s a sign of maturity in the asset class.

MBA NewsLink: What’s the takeaway for lenders and servicers?

Allen Price: The home equity space is no longer just about HELOCs. It’s about product innovation, servicing agility, and meeting homeowners where they are, and today, that often means preserving their low-rate first mortgage while unlocking equity.

Lenders should be thinking about how to participate in this segment, whether through partnerships, correspondent channels, or direct originations. And servicers need to be ready with customized infrastructure, borrower education, and multi-party reporting for everyone from asset managers to warehouse lenders.

BSI serves all three segments of the mortgage spectrum—originators, investors, and warehouse lenders. That gives us a unique, 360-degree view of the market, and we’re excited to help bring these products to life at scale.

Allen Price is a mortgage industry veteran with more than 25 years of experience in the primary and secondary markets. At BSI, he focuses on home equity investments and agreements and equity loan subservicing, QC and mortgage servicing rights acquisitions. Prior to BSI, he oversaw sales and strategy as senior vice president at RoundPoint Financial Group. In 2025, he became a member of the Board of Directors at Quorum Federal Credit Union and was named to the IMN Home Equity Investment Advisory Board.

(Views expressed in this article do not necessarily reflect policies of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes submissions from member firms. Inquiries can be sent to Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)