Will home equity investments take flight once their regulatory status is resolved?

Home equity investments (HEIs) continue to pique the interests of U.S. consumers and mortgage professionals alike, but their uncertain legal status in many parts of the country has the market on hold until more questions can be answered. One of the largest companies in the HEI space — Palo Alto, California-based Point — has stated its intention to grow awareness and use of their product despite the blurry legal and regulatory landscape. In May, the company launched a third-party origination (TPO) channel that aims to bring traditional mortgage brokers into the fold. Two months later, it announced a $508.6 million rated securitization backed by 30-plus institutional investors, which Point called the largest to date in the HEI space. Samuel Bjelac joined Point as its head of wholesale around the time of the TPO channel launch. A 20-year mortgage industry veteran with prior stops at Carrington Mortgage Services, Sprout Mortgage and CoreVest Finance, among others, he said HEIs are poised to take flight during a broader market slowdown. Earlier this week, the Mortgage Bankers Association (MBA) forecast total single-family loan volume to drop below $2 trillion in 2027. “Originators’ typi...