This is a single-family/residential course.
The servicing of home equity products experienced exceptional growth from 2000 to 2008. Production slowed dramatically in the wake of the financial crisis and is only now starting to recover. Many new regulations limit production in home equity loans and lenders are being very cautious in the HELOC space. Credit quality is the highest it has ever been and LTVs are typically much lower than historical norms.
In Servicing Implications of Equity Products, we begin with a broad overview various servicing functions, including the boarding of new loans, approving HELOC advances, customer service, and escrow administration. Next, we look at risks associated with home equity products and provide suggestions on how to mitigate their effects.
We then take a closer look at HELOC funds, examining how the credit limit is determined, how funds are advanced, and what rights the servicer has to protect its security interest. The course also looks at fees related to servicing home equity products.
We end the course with a review of the billing and repayment of home equity products. We discuss what is included on the billing statement and how statements are generated. Finally, we will examine the payment process, including how HELOC payments are calculated.
Risk Assessment and Abatement
Advancement of Funds
Possible Actions by the Servicer
The Billing Statement
The Billing Process
Calculating HELOC Payments
Seat time approximately one (1) hour.