After years of decline, last year saw nearly a million homeowners taking out home equity lines of credit, or HELOCs — and that trend is likely to continue as home values continue to rise throughout 2016. That’s good news for Notary Signing Agents who are ready to take on these types of assignments.
The 2015 surge in HELOC loans
HELOC loan volume nationwide is at the highest point in the past seven years, according to a March 2016 real estate market report from the mortgage industry analysis firm CoreLogic.
A HELOC is a type of loan that’s popular with homeowners with good equity seeking funds to remodel a house. Instead of borrowing a fixed amount, a HELOC sets up a line of credit up to a certain limit based on the borrower’s home equity, which the borrower can draw on in part or in total at a time of the borrower’s choosing.
Frank Nothaft, CoreLogic’s chief economist, said the surge in HELOC activity is being driven in part by strong growth in home values. CoreLogic expects home values to increase 5.8 percent in the coming year, which should continue making HELOCs attractive to homeowners.
How the HELOC trend can benefit Signing Agents
Like traditional home loans, NSAs often are used to facilitate the signing of HELOC documents, and this trend could provide extra income opportunities.
While HELOC assignments pay less than other types of loan signings, they also tend to involve smaller loan packages and take less time, said David M. Green, a veteran Notary Signing Agent based in Gettysburg, Pennsylvania. Green said that HELOC assignments he’s completed have paid from $50 to $100 per assignment.
“If you have experience with regular loan signings, you should be fine doing HELOC signings,” Green said. “Some of the documentation is a little different, but I do not think additional training is required. When I started doing HELOC signings, if I had questions I would call the signing company or title company.”
Green suggested that Signing Agents interested in working with HELOCs reach out to local signing services, title companies and banks.
A reminder for Texas Signing Agents about HELOCs
If you’re a Signing Agent in Texas, be aware that the state Constitution requires HELOC loans to be signed and closed in the office of a lender, attorney or title company.
David Thun is the Assistant Managing Editor with the National Notary Association.
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Additional Resources:
NNA Signing Agent Certification
Signing Agent State Restrictions