Nonbank HELOC lenders gain share as tappable equity reaches $11 trillion

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Nonbank growth in HELOC originations is a borrower-retention warning for banks, credit unions and mortgage lenders with past clients sitting on equity.

Nonbank HELOC lenders are taking more ground in home equity lending as homeowners sit on a reported $11 trillion in tappable equity, according to a HousingWire article published September 14, 2026. HousingWire reported that a new white paper says nonbanks increased HELOC originations by about 140% from 2023 to 2025, compared with 7% to 20% growth at depository institutions.

That spread matters because HELOC demand is one of the few places where many locked-in homeowners can still create mortgage activity without giving up a low first-lien rate. For producing loan officers, the story is less about one product and more about who owns the next borrower conversation when a homeowner wants cash, flexibility or a way to fund repairs, debt consolidation or life events.

Key takeaways

• A new white paper cited by HousingWire says nonbanks grew HELOC originations about 140% from 2023 to 2025.
• Depositories grew HELOC originations by a much smaller 7% to 20% over the same period, according to the same report summary.
• The report points to $11 trillion in tappable equity, giving lenders a large borrower base to compete for.
• For loan officers, the practical issue is retention: past purchase and refinance clients may be shopping for equity access outside their original lender relationship.

Sources

• HousingWire — Nonbank HELOC lenders gain market share as tappable equity hits $11 trillion

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