With home equity making a return, some are worried about the loose underwriting, which led to issues previously. But those issues appear to be a thing of the past. CoreLogic staffer Sam Khater takes a look at the current market trends and how they have improved.
The average credit-score is higher and debt-to-income rates are lower than 2006 highs, showing that the market is ready for this equity comeback:
Based on what we are hearing from clients, and seeing in the numbers, banks and credit unions are still treading lightly as they get comfortable with home equity risk, once again.
Many lenders are focusing first on existing clients, where they have higher comfort levels and can use public record and transactional data to assess borrower income levels and equity before inviting them to apply.