RC_LA_SS_200.2 Servicing Implications of Equity Products

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.

Servicing Implications of Equity Products begins with a broad overview of various servicing functions, including the boarding of new loans, approving HELOC advances, customer service, and escrow administration. Next, the course looks at risks associated with home equity products and provide suggestions on how to mitigate their effects. It then takes 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. It goes on to review the billing and repayment of home equity products. Next, the course discusses what is included in the billing statement and how statements are generated. The course concludes with discussions of how payments are made and how payments are calculated.

This is a single-family/residential course.

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