Home equity emerges as a generational growth strategy for originators

Using tools like blended rate calculators helps illustrate this clearly. When borrowers see the difference between total payments and long-term costs, the decision often becomes obvious. It’s about giving them options and helping them make the most financially sound choice.

If you put a borrower into a worse financial position, you risk losing them permanently. But if you guide them correctly, you build trust and create a long-term relationship.

HW: Deephaven has leaned into a broader equity portfolio, including closed-end seconds, DSCR second liens and digital HELOC options. How important is product variety right now, and where do you see the biggest opportunity to improve product delivery?   

TD: It’s critical. The equity market is growing quickly and is expected to represent a meaningful share of total originations. But borrowers don’t all have the same needs. Some want fixed payments and stability, which makes closed-end seconds attractive. Others need flexibility, especially investors or self-employed borrowers, where HELOCs or alternative documentation products make more sense.

That’s why having a full suite of options matters. It allows originators to match the product to the borrower’s situation rather than forcing a one-size-fits-all solution. At Deephaven, we’ve built an arsenal of products to give originators that flexibility across primary, secondary and investment properties.

Retention and recapture are the real battle

HW: Let’s talk about customer retention. How do equity products fit into a broader recapture strategy, especially as servicers become more aggressive?

TD: Servicers have mastered retention. Years ago, client retention rates were around 25%. Today, they’re over 70% and, in some cases, even higher after a second transaction. Once a loan is sold, servicers immediately begin targeting those borrowers with new offers. They have the data, the analytics and the timing down to a science.