2nd Mortgage Capital Markets Heat Up, Banks Report Home Equity Results

Home Equity Lending News, Oct. 23, 2023
The closing of TPMT 2023-CES2 is expected to take place on October 31. The $354 million transaction includes more than 4,800 closed-end second mortgages originated by Rocket Mortgage LLC, PennyMac Financial Services LLC and Spring EQ LLC. Servicers on the loans are PennyMac, Rocket and Specialized Loan Servicing LLC.

JP Morgan Chase & Co. Head of Securitized Products Research John Sim said in an interview that mortgage brokers are hesitating to pivot to home equity lending. “There’s a little bit of an education process,” Sim said. “Most of the brokers out there have been trained to just do cash-out refi. That’s been the story for the last 10 years, but now that’s largely wiped out. You have to re-educate everyone and say, ‘Here’s your alternative to that.’ ”
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