FOND DU LAC, Wis.–Info-Pro Lender Services has published a new e-book on home equity lines of credit (HELOC) and why it’s critical lenders are effectively tracking the loans made.
“In the past, HELOCs were relatively common among all homeowners, however, in recent years they have become harder to obtain. According to industry experts, this may be changing again in the coming years,” the e-book notes. “With HELOCs once again gaining momentum, it is imperative that they are properly tracked within financial institutions. HELOCs are often considered a second or third lien, and it is therefore important to track them to ensure taxes have been paid on the first mortgage.”\After providing an in-depth look at HELOCs, the e-book notes that “When it comes to HELOCs, borrowers can’t always be sure that all their loans are being tracked for delinquency. This is especially true in the event the customer does not hold their first mortgage. Because of this, transparency is a very real potential risk that lenders face. In order to head off any problems before they present themselves, it may be in a financial institution’s best interest to consider outsourcing this service to a knowledgeable third-party vendor.”
An outside vendor, the e-book explains, can provide the following when tracking HELOCs for lenders:
- Information on any changes within the loan portfolio
- Insight on any potential problem loans or areas within the loan portfolio
- Transparency for tax delinquency
- Information to help the lenders better understand the HELOC.
“Given the fact that HELOCs are expected to become much more popular in the coming years, tracking them annuallywill also become more important to banks and credit unions,” the e-book observes. “If done right and by a vendor who is committed to providing customized solutions for each and every HELOC portfolio, nancial institutions and their borrowers will be in good shape. review process and other important protocols.”
For info: www.info-pro.com.