Mortgage subservicer LoanCare, part of Fidelity National Financial, now offers open-ended home equity lines of credit (HELOC) nationwide.
“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,” LoanCare President Dave Worrall said in a release. “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.”
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 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 and assistance with line of credit management and lien monitoring.