Intelligent Pricing for Better Banks

Nomis Insights

Profitable Home Equity Lending in an Era of Portfolio Run-off


Speakers: Joseph Zeibert, SVP of Pricing Strategy at Bank of America; Brian Kost, Director of Data Science and Analytics, Icon Advisory Services; Rutger van Faassen, VP of Lending, Nomis
Banking Growth Forum 2016, San Francisco, CA

After a decade of relative inactivity, home equity lending may finally be rebounding, making this a good time to re-evaluate the role of home equity in your overall portfolio. Icon Advisory Group estimates that for every 1% increase in home value, the market for home equity lending increases by 4.5%. Despite the good news, success in home equity lending still offers some unique challenges.

In this presentation from the 2016 Banking Growth Forum, Nomis VP of Lending Rutger van Faassen moderates a discussion on the latest trends and approaches in home equity. Brian Kost from Icon helps the audience understand the market data, and Joseph Zeibert, SVP of Pricing Strategy at Bank of America shares his real-life perspective on:

  1. How do end of draw periods and other factors are challenging banks to address the problem of portfolio run-off?
  2. Incentive pricing: friend or foe?
  3. Can (or should) banks encourage customers to increase utilization of their home equity lines?
  4. What advantages do alternative lenders have over traditional banks and what lessons can banks learn from market upstarts?