LoanCare Announces Open-Ended HELOC Servicing

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Oct 18, 2022, 16:41 ET

Company Capitalizes on Its Unique Expertise and Servicing Capabilities

VIRGINIA BEACH, Va., Oct. 18, 2022 /PRNewswire/ -- LoanCare, a top U.S. mortgage subservicer, announced it offers open-ended Home Equity Line of Credit (HELOC) servicing options to lenders nationwide.

According to TransUnion, available home equity of mortgage holders continued to grow, hitting an aggregate total of $18.4 trillion during the first quarter of 2022 and is up 22% year-over-year and 52% over the last five years. Approximately 80 million consumers have available equity in their homes, averaging $223,000.

Unlike a home equity loan where a homeowner borrows a specific amount and then makes regular payments during a fixed repayment period, a HELOC leverages a home's equity, allowing the homeowner to obtain an open line of credit from which they can borrow up to a fixed amount as they need it. It is a revolving debt instrument, meaning that as the loan balance is paid down, it can be borrowed again during the draw period.

LoanCare has a comprehensive understanding of the special nuances involved in servicing HELOCs such as knowing what's required to appear on monthly statements, ensuring that interest calculations are accurate, and setting up the HELOCs correctly when the loans are on-boarded.

Specifically, LoanCare can accommodate segmented, fully amortized, and interest only HELOCs and provide interim servicing as well. It also offers:

Private label checkbooks for customers to access their draws
Customized monthly statements
Assistance with line of credit management
Assistance with lien monitoring
Better servicing capabilities for non-property secured lines of credit such as artwork, car, etc.

"Mortgage lenders are turning over rocks for cross-sell opportunities within their existing portfolios, and we expect home equity lending to grow remarkably in the next few years," said Dave Worrall, President of LoanCare. "LoanCare's proven capability to subservice open-ended home equity lines of credit allows our clients to confidently offer this important product to their customers."

About LoanCare

LoanCare is a top national provider in full service, component, and interim mortgage loan subservicing. Focused on optimizing asset performance while delivering personalized support and convenience, LoanCare tailored solutions deliver extraordinary results. Headquartered in Virginia Beach, Virginia, LoanCare subservices loans in all 50 states and is part of Fidelity National Financial, a leading provider of title insurance and transaction services to the real estate and mortgage industries. For more information, visit www.loancare.com.

SOURCE LoanCare