U.S. homeowners are sitting on more than $11 trillion in tappable home equity, and the mortgage industry is racing to capture it.
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With interest rates providing little incentive for many homeowners to refinance or relocate, lenders and technology firms are pouring resources into home equity lines of credit, a product long dominated by traditional banks and credit unions.
SoFi Technologies is the latest example, announcing a move into direct HELOC lending this week.
The company, which operates under a bank charter, is already one of the leading originators of closed-end home equity loans among peer depository institutions, according to data from Curinos.
HELOC balances have risen for 15 straight quarters, according to the Federal Reserve Bank of New York, with the outstanding cumulative balance across banks hitting $433 billion at the end of last year — more than three times the $116 billion recorded in early 2022.
READ MORE: From HELOCs to blockchain: home equity moves forward
A HELOC platform goes independent
In another reflection of HELOC’s rise, SoFi’s announcement comes just days after home equity lending software firm NFTYDoor announced its spinoff as an independent firm. Previously a subsidiary of Homebridge Financial, the development allows the company to expand its platform eligibility criteria in order to help clients attract borrowers, its leaders said this week.
“We now offer a compelling combination of the widest credit box, meaningfully lower borrower rates and the highest partner compensation in the market,” said Mark Schacknies, CEO and co-founder of the McLean, Virginia-based technology firm, in a press release.
HELOC origination software has similarly been a key factor to Figure Technologies’ recent growth as a publicly traded enterprise, with the company making its origination platform available to independent mortgage banks beginning in 2023. The former CEO of SoFi, Mike Cagney, founded Figure in 2018 and currently serves as its executive chairman.
Other SoFi lending developments
Alongside its HELOC announcement, SoFi also revealed the launch of a real estate advisory council, in addition to expanding the number of loan officers across the country. Comprising more than 50 real estate leaders serving customers at all price tiers, the council will advise SoFI on market insights and new-product potential. Members will also serve as brand ambassadors for the home lending unit.
“The best way to build the future of home lending is by innovating our products and listening to the people guiding buyers and sellers every day,” said Eric Schuppenhauer, executive vice president of borrow at SoFi.
“Real estate agents are constantly asked by lenders for introductions to their buyers, but banks rarely ask how they can provide value,” added member Holly Meyer Lucas, a founding principal of Compass. “SoFi is leading the industry by example, creating a culture of collaboration.”
Since launching a mortgage division in 2014, SoFi has embarked on various initiatives to make its mark in home lending. Alongside conforming conventional mortgages, the company currently offers jumbo and government-backed products.
In 2023, the company expanded through the acquisition of Wyndham Capital Mortgage. That merger came after a different deal in 2018 when it acquired assets belonging to Clara Lending. For a time following the 2018 deal, its mortgage unit operated underthe brand name of SoFi Home Loans
In 2025, SoFi mortgage production totaled more than $3.4 billion, according to IEmergent analysis of Home Mortgage Disclosure Act data. Last year’s number represented a significant year-over-year increase of 46.8% from 2024’s $1.8 billion worth of volume.