HELOC reset warnings were issued early last year, but action taken by lenders was mixed. While HELOC resets pose a huge risk to both lenders and borrowers, there is also an opportunity for home equity lenders to step up and lead − perhaps even gaining market share and a competitive advantage. Many experts think the HELOC reset deadlines facing borrowers could trigger another foreclosure crisis. Recent RealtyTrac HELOC data estimates there are 1.8 million underwater homes with resetting HELOCs, to the tune of $88.7 billion nationwide. Lenders have the power to help prevent this from happening by taking immediate action now on any HELOC that is scheduled to reset within the next three years.
The challenge with HELOC reset loans is that you may have thousands (or hundreds of thousands) of them, and new regulations require that each expiring HELOC be treated as a new loan. This means going through the entire loan origination, property valuation and closing process across a huge volume of loans. For the largest lenders, these loans represent millions of dollars of assets, so procrastinating will only put your business as risk. Better to tackle them now and seize the opportunity to retain your best customers, especially as your competitors ramp up their home equity marketing efforts.
To help you accelerate and streamline the process of managing HELOC resets, consider going with a solution provider who specializes in this process. The investment will save you time and money in the long-run, and potentially help you retain your best customers before your competitors snatch them away (which is priceless). In addition, partnering with a firm to help you assess, organize and re-appraise the properties tied to these loans will ensure that compliance is built in to the process. Finally, the time you gain back can be applied to marketing within your existing customer base, providing exceptional customer service and engaging in business development efforts to win new clients – all of which contribute to growth and profitability.
Accurate Group has developed a turnkey solution designed specifically to help banks and lenders address HELOC resets in an efficient, effective and compliant manner. Accurate EquityRenew combines technology, processes and data analysis to quickly and thoroughly evaluate each HELOC, identify red flags related to title and property liens and issue an accurate and compliant appraisal on each property. As the lender, you are provided with a report and online dashboard that scores each loan so that you can focus your efforts on the highest priorities and take the appropriate action needed for each HELOC.
Here are 3 resources to get you started:
- An eBook exploring some of the challenges and opportunities that HELOC resets present
- An infographic outlining how the Accurate EquityRenew solution works and the value you gain
- An overview of the Accurate EquityRenew solution
After you’ve explored these resources, please contact us to discuss your specific needs. As the leading home equity appraisal, title and compliance company nationwide, Accurate Group is uniquely positioned to help your firm tackle this opportunity. We have proven technology, processes and experts in place, so you can be confident in handing off HELOC assessments to us – and you can stay focused on client service and growing your business.
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