"One thing I love about home equity lending
is that there are so many things that you can do with it.
Figure 3 shows the predicted rate of change in home equity lending
as a function of home prices.
Steve Bredeson has been named director of home equity lending
. Bredson has more than 25 years of experience in the industry and a proven, track record of success.
According to an April 2006 report by Atlanta-based Bench Mark Consulting International's Brian King, entitled Property Valuation, Title, Flood, and Closings--the Past, the Present, and the Future, in 2005 Bench Mark released the results of its Consumer Bankers Association's Home Equity Lending
Study, which revealed that the percentage of valuations performed using AVMs increased from 50 percent in 2003 to 66 percent in 2005.
A longer-term economic issue concerns the tapped-out American consumer, particularly in the wake the home equity lending
boom and the interest-only mortgage activity of the past couple of years.
Among the topics of a two-hour October 12 telebriefing cosponsored by the American Bankers Association and the Appraisal Institute were the Appraisal Standards Board's Scope of Work project and recent guidance issued by the federal financial regulatory agencies on residential tract development and home equity lending
. "How New Appraisal Requirements Impact Bankers and Appraisers," was the third such program the two groups have sponsored and it broke all previous audience records, tipping the scale at 642 listening sites.
The rapid growth of home equity lending
has in some cases outpaced sound credit management practices.
In May, the federal regulators of depository institutions issued an interagency supervisory letter titled "Credit Risk Management Guidance for Home Equity Lending
," which flagged many of the risky features that are prevalent in the markets for first mortgage loans as well.
Currently, the majority of research on home equity lending
is conducted by survey research centers.
Source: Consumer Banker Association's 2003 Home Equity Lending
HOEPA was enacted in response to anecdotal evidence of predatory lending practices in the home equity lending
The proposed changes call for additional information to be collected as well as requiring more institutions to report, in hopes of highlighting predatory practices in the home mortgage and home equity lending
has used to enable it to grow despite a tough year for some in the sub-prime home equity lending
* For specialized technical skills and personnel to implement risk-based internal audit methodology, such as diagnostic reviews of regulatory compliance issues in the home equity lending
According to MBA's numbers, home equity lending
totaled about $60 billion and accounted for about 7.5 percent of all mortgage originations in 1996, compared to only $40 billion and a 6 percent share of originations in 1995.