A recent home equity lending study conducted by BenchMark Consulting International and the Consumer Bankers Association has identified areas to help lenders assess their risk when originating loans. The annual Consumer Bankers Association Home Equity Lending Study, which included 23 participants, found an increase in the number of first liens, an increase in the number of 90-day-plus delinquencies, and an increase in senior borrowing. Of this group, the survey showed 37 percent of the loan originations were first-lien positions. Historically the business has been centered around second-lien requests. Jim Leath, Consumer Lending and Mortgage Banking Practice Manager for BenchMark, suggests, "A big takeaway for lenders here is the risk mitigation factor. The growth of these first-lien p...
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