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Rocket Pro TPO will offer home equity loan products

Rocket Pro TPO is diversifying its product portfolio by offering home equity loans to brokers by mid-September amid increased competition in the wholesale channel. The move follows Rocket Mortgagehome equity lending rollout in August as the company attempts to capitalize on Americans’ strong home equity positions.

With the Rocket Pro TPO product, homeowners can access up to $350,000 of their home’s equity in a 10- or 20-year fixed-rate loan with a loan-to-value ratio of up to 90%, the company said. society.

“Now is the perfect time to provide a solution for brokers who can then provide a solution for Americans to tap into that equity when they need it most while keeping the very low interest rate that many have on their mortgage,” said Austin Niemiec, executive vice president. President of Rocket Pro TPO.

According Black KnightMortgage monitor report.

At the end of the second quarter, the average U.S. owner had $216,000 of workable equity, up 5% to $9,700 from the prior quarter, wrote Andy Walden, vice president of research and corporate strategy at Black Knight. recent report.

Home equity lending, an area traditionally dominated by custodial banks, is becoming popular with non-custodial banks as consumers become more interested in home equity lending and home equity line of credit products ( HELOC) to take advantage of the rising value of their property.

loanDeposit and New residential investment company. are companies planning to launch home equity line of credit (HELOC) products.

Rocket Pro TPO home equity loan offers follow United Wholesale Mortgagethe “Game On” pricing initiative which reduced prices between 50 basis points and 100 basis points on all mortgage products. While UWM’s goal is to increase its market share by courting more brokers, this is taking its toll on other lenders, forcing some out of the wholesale channel.

Asked how Rocket Pro TPO has been affected by UWM’s aggressive pricing, Niemiec emphasized consistency and growth for his brokers.

“We focus on our partners in the best possible way to help them grow long-term and consistently,” Niemiec said. “We really pride ourselves on being reliable. We don’t like to play games or gimmicks, temporary flashes for marketing purposes. »

More than a year ago, UWM issued an ultimatum to brokers, pledging to hamper Rocket, the nation’s largest lender, in the wholesale business.

As of March 2021, UWM policy prohibits brokers who have sent loans to Rocket Pro TPO and Fairway Independent Mortgage to also work with UWM. Mat Ishbia, CEO of UWM, said the move was to protect the broker space, while Rocket and Fairway said it was a ruthless tactic to undercut competitors.

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