Sounds like an internal pricing problem to me. Why would a home equity loan on a property that is free and clear be more risky than a loan in a purchase transaction?
First Lien Home Equity Rates Measured Against APOR
Why are first lien home equity rates being measured against a residential Average Prime Offer Rate (APOR) when these are two different products? It is hard to explain to a borrower that their home equity rate is priced higher than the average rate of an entirely different product, thus resulting in an escrow requirement.
First published on 08/18/2019