HighTechLending, a national mortgage lender focused on innovative solutions to consumer needs, has announced a partnership with Better to expand access to home equity loans through HighTechLending's EquitySelect HELOC to their retail channel, NEO Home Loans powered by Better. The partnership is designed to help more homeowners access the equity in their homes, particularly those who may not qualify for traditional home equity loans despite being creditworthy and holding substantial equity. Across the country, homeowners are sitting on an estimated $35 trillion in home equity.
At the same time, approximately 26 million homeowners have mortgage interest rates below 4%, creating a lock-in effect that discourages them from completing a cash-out refinance to hold onto their low rate. Millions more are self-employed or have variable incomes that may not meet traditional loan criteria, making it difficult to access their largest financial asset, home equity. For homeowners aged 40 and over, annual estimated loan volumes lost exceed $240 billion.
HighTechLending created the EquitySelect HELOC, or home equity line of credit, to provide a more flexible way for equity-rich homeowners to tap their home equity without refinancing their first mortgage. The product reengineers how required payments are structured, giving borrowers more flexibility over their monthly obligations while remaining grounded in disciplined, equity-based underwriting. Based on a review of sample data from NEO Home Loans powered by Better's declined home equity applications, HighTechLending estimates that as many as 20% of those borrowers could qualify under the EquitySelect HELOC structure.
By incorporating EquitySelect into its broader product offering, NEO Home Loans powered by Better will be able to provide an additional path forward for homeowners seeking capital for home improvements, debt consolidation, and other financial goals. Under the partnership, NEO Home Loans powered by Better will offer EquitySelect as part of its product suite and will work closely with HighTechLending to train its teams and integrate the product into its workflow. HighTechLending will purchase the loans originated through the program.
