"We expect home equity lending to grow remarkably in the next few years"
Mortgage subservicer LoanCare has announced that it now offers an open-ended home equity line of credit (HELOC) servicing option to lenders nationwide.
The Virginia Beach-headquartered company subservices loans in all 50 states and is part of Fidelity National Financial, a leading provider of title insurance and transaction services to the real estate and mortgage industries. With the launch of its HELOC offerings, LoanCare now accommodates segmented, fully amortized, and interest-only HELOCs and provides interim servicing.
“Unlike a home equity loan where a homeowner borrows a specific amount and then makes regular payments during a fixed repayment period, a HELOC leverages a home’s equity, allowing the homeowner to obtain an open line of credit from which they can borrow up to a fixed amount as they need it,” LoanCare said in a statement. “It is a revolving debt instrument, meaning that as the loan balance is paid down, it can be borrowed again during the draw period.
“LoanCare has a comprehensive understanding of the special nuances involved in servicing HELOCs, such as knowing what’s required to appear on monthly statements, ensuring that interest calculations are accurate, and setting up the HELOCs correctly when the loans are on-boarded.”
“Mortgage lenders are turning over rocks for cross-sell opportunities within their existing portfolios, and we expect home equity lending to grow remarkably in the next few years,” said Dave Worrall, president of LoanCare. “LoanCare’s proven capability to subservice open-ended home equity lines of credit allows our clients to confidently offer this important product to their customers.”