{"id":62888,"date":"2026-04-26T03:00:11","date_gmt":"2026-04-26T01:00:11","guid":{"rendered":"https:\/\/housesmarketplace.com\/home-equity-emerges-as-a-generational-growth-strategy-for-originators\/"},"modified":"2026-04-26T03:00:11","modified_gmt":"2026-04-26T01:00:11","slug":"home-equity-emerges-as-a-generational-growth-strategy-for-originators","status":"publish","type":"post","link":"https:\/\/housesmarketplace.com\/ru\/home-equity-emerges-as-a-generational-growth-strategy-for-originators\/","title":{"rendered":"Home equity emerges as a generational growth strategy for originators"},"content":{"rendered":"
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With refinance activity constrained and purchase volume under pressure, lenders are being forced to rethink their sustainable growth plans. The answer is becoming clear: home equity. As millions of homeowners remain locked into low mortgage rates, they are turning to second liens and mortgages to access equity without disrupting their primary loan.<\/p>\n

\"Tom<\/figure>\n

Tom Davis, Chief Sales Officer at Deephaven, explains why home equity is no longer a niche product but has emerged as one of the most significant opportunities in today\u2019s lending environment.<\/em><\/p>\n

He shares how originators can reposition their approach and what it takes to compete as retention and recapture dynamics shift across the industry.<\/p>\n

Home equity is today\u2019s biggest lending opportunity<\/h2>\n

HousingWire:<\/strong> You see \u0441\u043e\u0431\u0441\u0442\u0432\u0435\u043d\u043d\u044b\u0439 \u043a\u0430\u043f\u0438\u0442\u0430\u043b<\/a> as a \u201cgenerational opportunity.\u201d What makes this cycle different, and why aren\u2019t more lenders treating equity as a core strategy?<\/p>\n

\u0422\u043e\u043c \u0414\u044d\u0432\u0438\u0441: <\/strong>The backdrop is simple: The U.S. is very equity-rich. Seventy percent of borrowers have mortgage rates below 5%<\/a>, effectively freezing the traditional cash-out refinance market. Borrowers don\u2019t want to give up those low rates, so they\u2019re looking for other ways to access liquidity.<\/p>\n

At the same time, U.S home equity has surpassed a record high of\u00a0$35 trillion<\/a> in tappable equity across U.S. households. A significant portion of wealth is tied to housing. In fact, there are roughly 24M millionaires in the U.S.<\/a>, and an estimated 75% of that wealth is built through home equity. That reality is reshaping how borrowers think about liquidity and how to use it for practical needs.\u00a0<\/p>\n

\u0422\u0438\u043f\u0438\u0447\u043d\u044b\u0439 U.S. home is now 40-50 years old<\/a>, driving a surge in renovation activity. Industry forecasts call for more than $600 billion in home improvement spending<\/a> in 2026, as more homeowners plan to stay in place long term. Reinvesting in aging homes has become a practical and strategic decision.<\/p>\n

Beyond renovations, demand is driven by high consumer debt<\/a>, which has reached $5 trillion<\/a> as borrowers consolidate high-interest obligations such as credit cards. Self-employed borrowers are leveraging equity to fund businesses, and investors are using it to expand portfolios without disrupting low-rate first liens. The use cases are broad, but the common theme is that equity is now the primary liquidity tool.<\/p>\n

As for why lenders haven\u2019t fully embraced it, most are still focused on purchase volume. But that leaves a gap. Originators underestimate both the size of the opportunity and the role equity plays in retaining clients. The data shows that more than 70% of borrowers<\/a> don\u2019t return to their original loan officer for their next transaction. That\u2019s a major missed opportunity, and equity products are among the best ways to stay connected with that borrower.\u00a0<\/p>\n

Why borrowers need alternatives to refinancing<\/h2>\n

\u0413\u0412<\/strong>: How should originators shift the conversation from refinancing to equity solutions like HELOCs<\/a> or closed-end seconds?<\/p>\n

\u0422\u0414: <\/strong>This is where the role of the originator evolves into more of a financial advisor. Instead of defaulting to a refinance, originators need to walk borrowers through the economics. If someone has a $500,000 mortgage at 3% and needs $50,000, it rarely makes sense to refinance the entire balance at today\u2019s higher rates. A second lien loan allows them to preserve that low first mortgage while accessing the funds they need.<\/p>\n

Using tools like blended rate calculators helps illustrate this clearly. When borrowers see the difference between total payments and long-term costs, the decision often becomes obvious. It\u2019s about giving them options and helping them make the most financially sound choice.<\/p>\n

If you put a borrower into a worse financial position, you risk losing them permanently. But if you guide them correctly, you build trust and create a long-term relationship.<\/p>\n

\u0413\u0412:<\/strong> Deephaven has leaned into a broader equity portfolio, including closed-end seconds, DSCR second liens and digital HELOC options. How important is product variety right now, and where do you see the biggest opportunity to improve product delivery?\u00a0\u00a0\u00a0<\/p>\n

\u0422\u0414:<\/strong> It\u2019s critical. The equity market is growing quickly and is expected to represent a meaningful share of total originations. But borrowers don\u2019t all have the same needs. Some want fixed payments and stability, which makes closed-end seconds attractive. Others need flexibility, especially investors or self-employed borrowers, where HELOCs or alternative documentation products make more sense.<\/p>\n

That\u2019s why having a full suite of options matters. It allows originators to match the product to the borrower\u2019s situation rather than forcing a one-size-fits-all solution. At Deephaven, we\u2019ve built an arsenal of products to give originators that flexibility across primary, secondary and investment properties.<\/p>\n

Retention and recapture are the real battle<\/h2>\n

\u0413\u0412:<\/strong> Let\u2019s talk about customer retention. How do equity products fit into a broader recapture strategy, especially as servicers become more aggressive?<\/p>\n

\u0422\u0414:<\/strong> Servicers have mastered retention. Years ago, client retention rates were around 25%. Today, they\u2019re over 70% and, in some cases, even higher after a second transaction. Once a loan is sold, servicers immediately begin targeting those borrowers with new offers. They have the data, the analytics and the timing down to a science.<\/p>\n

If originators aren\u2019t offering home equity products, they\u2019re not just missing a deal today; they\u2019re also losing the borrower to future transactions. That\u2019s the bigger risk. With more than 40% of American homeowners now mortgage-free<\/a>, a significant portion of the market has no relationship with a lender at all.\u00a0<\/p>\n

The most successful originators treat equity as a core part of their retention strategy. They stay engaged with past clients, offer relevant solutions and position themselves as the go-to resource. Equity products create natural reasons to reconnect, whether it\u2019s renovations, debt consolidation or investment opportunities.<\/p>\n

How originators can build an equity strategy\u00a0<\/h2>\n

\u0413\u0412: <\/strong>Where do you see the biggest gaps in today\u2019s digital HELOC landscape?\u00a0\u00a0\u00a0<\/p>\n

\u0422\u0414:<\/strong> Most digital HELOC solutions are highly automated, but they lack flexibility. They rely heavily on automated valuation models<\/a> and rigid underwriting parameters, which means if a borrower doesn\u2019t fit neatly into the box, the deal falls apart.<\/p>\n

What we\u2019ve focused on is a hybrid approach. You still get the speed and efficiency of digital, but with manual off-ramps when needed. That includes the ability to use appraisals for more accurate valuations, to review bank statements for nontraditional income and to handle edge cases more effectively.<\/p>\n

That human element makes a big difference. Borrowers aren\u2019t always standard, and originators need tools that can adapt to real-world scenarios.\u00a0<\/p>\n

\u0413\u0412: <\/strong>What does it take for originators to successfully integrate these products into their business?\u00a0<\/p>\n

\u0422\u0414: <\/strong>It starts with training and mindset. The difference between average and top-performing originators is their level of expertise. The best professionals invest in understanding these products and how to position them.<\/p>\n

From there, it\u2019s about being strategic. Instead of chasing low-probability leads, focus on segments with real opportunity. Investors, for example, account for a significant share of transactions and often complete multiple deals per year. That\u2019s a much higher lifetime value than a traditional borrower.<\/p>\n

The same applies to referral partners. A small percentage of \u0440\u0438\u0435\u043b\u0442\u043e\u0440\u044b<\/a> control the majority of listings. If you can bring differentiated expertise, especially in non-agency and equity solutions, you can break into those relationships.<\/p>\n

Finally, it\u2019s about leveraging your existing database. Every past client likely has equity. Reaching out with a simple, value-driven conversation can open the door to new opportunities. The best originators stay connected, provide solutions and continuously create value.<\/p>\n

\u041a\u043b\u0438\u043a\u043d\u0438\u0442\u0435 \u0441\u044e\u0434\u0430<\/p>\n