Mortgage lenders funded just $20.58 billion in second liens during the third quarter, an 82% decline from the same period last year, according to exclusive survey figures compiled by National Mortgage News.
A year ago the industry funded $116 billion in seconds. The figures include both open-end HELOCs and closed-end seconds. In the second quarter, home equity originations totaled $42 billion. Over the past 18 months second-lien funders of all stripes have severely curtailed the size of loans they are willing to fund and exited certain markets where home prices have fallen the most. Also, many lenders no longer use seconds in 80-10-10 and 80/20 structures.