Discover how streamlining the verification process helps mortgage lenders serve more borrowers without sacrificing accuracy.

Home equity lending has re-emerged as a central theme in the U.S. financial landscape, driven by economic realities and consumer behavior.

The June 2025 housing market trends report presents a nuanced view of the U.S. mortgage and home equity landscape.

In this episode of "The Chrisman Commentary" podcast, Ken Tromer and Ted Wentzel discuss how Experian Verify ensures price transparency.

Listen to Experian experts as they talk about reducing mortgage pipeline fallout and approving loan pull through rate.

As data breaches become an ever-growing threat to businesses, the role of employees in maintaining cybersecurity has never been more critical. Did you know that 82% of data breaches involve the human element1 , such as phishing, stolen credentials, or social engineering tactics? These statistics reveal a direct connection between employee identity theft and business vulnerabilities. In this blog, we’ll explore why protecting your employees’ identities is essential to reducing data breach risk, how employee-focused identity protection programs, and specifically employee identity protection, improve both cybersecurity and employee engagement, and how businesses can implement comprehensive solutions to safeguard sensitive data and enhance overall workforce well-being. The Rising Challenge: Data Breaches and Employee Identity Theft The past few years have seen an exponential rise in data breaches. According to the Identity Theft Resource Center, there were 1,571 data compromises in the first half of 2024, impacting more than 1.1 billion individuals – a 490% increase year over year2. A staggering proportion of these breaches originated from compromised employee credentials or phishing attacks. Explore Experian's Employee Benefits Solutions The Link Between Employee Identity Theft and Cybersecurity Risks Phishing and Social EngineeringPhishing attacks remain one of the top strategies used by cybercriminals. These attacks often target employees by exploiting personal information stolen through identity theft. For example, a cybercriminal who gains access to an employee's compromised email or social accounts can use this information to craft realistic phishing messages, tricking them into divulging sensitive company credentials. Compromised Credentials as Entry PointsCompromised employee credentials were responsible for 16% of breaches and were the costliest attack vector, averaging $4.5 million per breach3. When an employee’s identity is stolen, it can give hackers a direct line to your company’s network, jeopardizing sensitive data and infrastructure. The Cost of DowntimeBeyond the financial impact, data breaches disrupt operations, erode customer trust, and harm your brand. For businesses, the average downtime from a breach can last several weeks – time that could otherwise be spent growing revenue and serving clients. Why Businesses Need to Prioritize Employee Identity Protection Protecting employee identities isn’t just a personal benefit – it’s a strategic business decision. Here are three reasons why identity protection for employees is essential to your cybersecurity strategy: 1. Mitigate Human Risk in Cybersecurity Employee mistakes, often resulting from phishing scams or misuse of credentials, are a leading cause of breaches. By equipping employees with identity protection services, businesses can significantly reduce the likelihood of stolen information being exploited by fraudsters and cybercriminals. 2. Boost Employee Engagement and Financial Wellness Providing identity protection as part of an employee benefits package signals that you value your workforce’s security and well-being. Beyond cybersecurity, offering such protections can enhance employee loyalty, reduce stress, and improve productivity. Employers who pair identity protection with financial wellness tools can empower employees to monitor their credit, secure their finances, and protect against fraud, all of which contribute to a more engaged workforce. 3. Enhance Your Brand Reputation A company’s cybersecurity practices are increasingly scrutinized by customers, stakeholders, and regulators. When you demonstrate that you prioritize not just protecting your business, but also safeguarding your employees’ identities, you position your brand as a leader in security and trustworthiness. Practical Strategies to Protect Employee Identities and Reduce Data Breach Risk How can businesses take actionable steps to mitigate risks and protect their employees? Here are some best practices: Offer Comprehensive Identity Protection Solutions A robust identity protection program should include: Real-time monitoring for identity theft Alerts for suspicious activity on personal accounts Data and device protection to protect personal information and devices from identity theft, hacking and other online threats Fraud resolution services for affected employees Credit monitoring and financial wellness tools Leading providers like Experian offer customizable employee benefits packages that provide proactive identity protection, empowering employees to detect and resolve potential risks before they escalate. Invest in Employee Education and Training Cybersecurity is only as strong as your least-informed employee. Provide regular training sessions and provide resources to help employees recognize phishing scams, understand the importance of password hygiene, and learn how to avoid oversharing personal data online. Implement Multi-Factor Authentication (MFA) MFA adds an extra layer of security, requiring employees to verify their identity using multiple credentials before accessing sensitive systems. This can drastically reduce the risk of compromised credentials being misused. Partner with a Trusted Identity Protection Provider Experian’s suite of employee benefits solutions combines identity protection with financial wellness tools, helping your employees stay secure while also boosting their financial confidence. Only Experian can offer these integrated solutions with unparalleled expertise in both identity protection and credit monitoring. Conclusion: Identity Protection is the Cornerstone of Cybersecurity The rising tide of data breaches means that businesses can no longer afford to overlook the role of employee identity in cybersecurity. By prioritizing identity protection for employees, organizations can reduce the risk of costly breaches and also create a safer, more engaged, and financially secure workforce. Ready to protect your employees and your business? Take the next step toward safeguarding your company’s future. Learn more about Experian’s employee benefits solutions to see how identity protection and financial wellness tools can transform your workplace security and employee engagement. Learn more 1 2024 Experian Data Breach Response Guide 2 Identity Theft Resource Center. H1 2024 Data Breach Analysis 3 2023 IBM Cost of a Data Breach Report

Whether consumers are shopping for new credit or experiencing financial stress, monitoring their behavior is crucial — even more so in an ever-changing economy. Our latest infographic explores economic trends impacting consumers’ financial behaviors and how Experian’s Risk and Retention TriggersSM enable lenders to detect early signs of risk or churn. Key highlights include: Credit card balances climbed to $1.17 trillion in Q3 2024. As prices of goods and services remain elevated, consumers may continue to experience financial stress, potentially leading to higher delinquency rates. Increasing customer retention rates by 5% can boost profits by 25% to 95%. View the infographic to learn how Risk and Retention Triggers can help you advance your portfolio management strategy. Access infographic

In 2024, the housing market defied recession fears, with mortgage and home equity growth driven by briefly lower interest rates, strong equity positions, generally positive economic indicators, and stock market appreciation. This performance is notable because, in 2023, economists’ favorite hobby was predicting a recession in 2024. Following a period of elevated inflation, driven largely by loose monetary policy, expansionary fiscal policy, and supply chain disruptions brought on by COVID, economists were certain that the US economy would shrink. However, the economy continued outperforming expectations, even as unemployment rose modestly (Figure 2) and inflation cooled (Figure 3). Source: FRED (Figure 1, Figure 2, Figure 3). So, a good economy is good for the mortgage and home equity markets, right? Generally speaking, this statement was true. As monitored by Experian’s credit database, mortgage originations increased by approximately thirty percent year over year as of November 2024 (Figure 4), and Q3 ’24 pre-tax profit for Independent Mortgage Banks (IMBs) averaged $701 per loan.1 So, business in home lending is good — certainly better than it was during the period when the Fed was raising rates, origination volumes shrank as opposed to grew, and IMB profit per loan turned negative. Source: Experian Ascend Insights Dashboard. What constituted this growth in mortgage lending? As we all know, the Fed has lowered interest rates by 100bps since they started reducing rates in September. The market had priced in the September cut weeks prior to the actual announcement (Figure 5), and the market enjoyed a spike in refinance volume as a result (Figure 6). However, in the lead-up to and following the US presidential election, interest rates spiked back up due to the market’s expectations around future economic activity, which will dampen pressure on refinance volumes even after the recent additional rate drop. The impact of further rate drops on mortgage rates is unclear, and refinance volume still constitutes only around three percent of overall origination volume. Source: Figure 5, Figure 6 (Experian Ascend Insights Dashboard). The shift to a purchase-driven housing market What does this all mean? Our view is that pockets of refinance volume (rate and term, VA, FHA, cashout) are available to those lenders with a sophisticated targeting strategy. However, the data also very clearly indicates that this market is still very much a purchase market in terms of opportunity for originations growth. This position should not surprise long-time mortgage lenders, given that purchase volume has always constituted a significant majority of origination volume. However, this market is a different purchase market than lenders may be used to. This purchase market is different because of unprecedented statistics about the housing market itself. The average age of a first-time homebuyer recently reached a record high of 38. The average age of overall homebuyers in November of this year similarly jumped to a new record high of 56, with homes being “wildly unaffordable for young people.” Twenty-six percent of home purchases are all-cash, another record high, and homeowners have an aggregate net equity position of $17.6 trillion, fueling those all-cash purchases. The market is expensive both from an interest rate perspective and a housing price-level perspective, and those trends are driving who is buying homes and how they are buying them.2 Opportunities for lenders in 2025 What do these housing market dynamics mean for lenders? To begin with, lenders should not spend money marketing mortgages to consumers in their 50s and 60s with large equity positions. These consumers are likely to be in the 26 percent all-cash buyer cohort, and that money will be wasted since mortgages are no longer so cheap that even cash-rich buyers would take them. Further, this equity-rich generation has children, and nearly 40% of those children borrow from the bank of mom and dad to purchase their first home. Since roughly a quarter (albeit a shrinking quarter) of homebuyers are first-time homebuyers, and since 40% of those rely on help from parents to facilitate that purchase, it may make sense for lenders to identify those consumers with 1) children and 2) significant equity positions and to offer products like cash-out refinances or home equity loans/lines to help facilitate those first-time purchases. Data is critical to executing these kinds of novel marketing strategies. It is one thing to develop these marketing and growth strategies in principle and another entirely to efficiently find the consumers that meet the criteria and give them a compelling offer. Consider home equity originations. As Figure 7 illustrates, HELOC originations are strong but have completely stalled from a growth rate perspective. As Figure 8 illustrates, this is despite the market's continued growth in direct mail marketing investment. Although HELOC origination volumes are a fraction of mortgage—around $27b per month for HELOC versus $182b per month for mortgage—there are significantly more home equity direct mail offers being sent per month (39 million) for home equity products as there are for mortgage (31 million) as of October ’24.3 This all means that although many lenders have wised up to the home equity opportunity to the point of saturating the market with offers, few have successfully leveraged targeting data and analytics to craft sufficiently compelling offers to those consumers to convert those marketing leads into booked loans. Source: Figure 7 (Experian Ascend Insights Dashboard), Figure 8 (Mintel). Adapting to a resilient housing market In summary, the housing market, comprised of mortgage and home equity products, has experienced persistent growth over the past year. Many who are reading this note will have benefitted from that growth. However, as we have identified, in many respects housing market growth has 1) been concentrated to some key borrower demographics and 2) many lenders are investing in marketing campaigns that are not efficiently reaching or convincing that key housing demographic to book loans, whether it be a home equity or mortgage product. As such, as we move into 2025, Experian advises our clients to focus on the following three themes to ensure they benefit from this trend of growth into the new year: Ensure you effectively differentiate your marketing targeting, collateral, and offers for the various demographics in the market. Ensure your origination experiences for mortgage and home equity products are modern and efficient. Lenders who force all borrowers through a painful, manual legacy process will waste marketing dollars and experience pipeline fallout. Although the market is growing, other lenders are coming for your current customers. They could be coming for purchase activity, refinance opportunities, or they may be using home equity products to encroach on your existing mortgage relationship. As such, capitalizing on growth in 2025 is not merely about gaining new customers; it is also about retaining your existing book of business using high-quality data and analytics. Learn more 1 Although December numbers are available for year-over-year comparison, we excluded them due to the holiday period's strong seasonality patterns. 2 The Case-Shiller index recently topped out at record levels. 3 Mintel/Comperemedia data.

Examine today’s renter population, current market trends, the state of housing development, and the market’s future.

Hear from Greg Holmes, Chief Revenue Officer at Xactus, on how their partnership with Experian enhanced operations and client satisfaction.

Consumers' financial behaviors are constantly changing. Event triggers enable lenders to quickly respond before their portfolio takes a hit.

In the latest episode of “The Chrisman Commentary” podcast, Experian experts explore how lenders can navigate a tight mortgage market.

AI is significantly transforming the landscape of real estate fraud, enabling criminals to execute schemes like deed theft with greater ease.

The Fed finally made their long-awaited rate cut. Hooray! The industry is saved! Brush off the dust everyone, it’s time to start originating mortgages like it’s 2006 again! Not so fast. While it's true that there are opportunities to take advantage of now that rates have declined, there remain open questions: How much further will rates decline? So far, only this single drop has been signaled. How many customers will realize benefit from a rate & term refinance offer given the rate drop(s)? What does this rate drop mean for the purchase market given that home prices remain at all-time highs? To put it simply, there are lending opportunities for home lenders (mortgage and home equity), but only for those with the ability to effectively leverage data and analytical strategies to identify and execute on the pockets of opportunity. By “pockets of opportunity,” we mean the following categories of consumers will benefit from specific mortgage or home equity offers. Rate & term refi: According to Experian research, over 83% of mortgages have an interest rate below 6.5%. This means that only the loans originated in the past couple of years (including one held by your author) will be eligible for a rate & term refi. The dollar amount on these loans will be high along with the interest rates, so even a minor savings on the interest rate will translate to potentially hundreds of thousands of dollars in lifetime interest savings for the borrowers. Being able to accurately identify which borrowers have an interest rate that is higher than the rate you can offer them is key to efficiently targeting and originating rate & term refinances. Cashout refi: Equity levels exploded over the past several years for homeowners. Home prices show no sign of slowing down and home equity continues to be a significant, and in many cases untapped, financial resource for borrowers. A cashout refi is an excellent option for those consumers with high amounts of available equity in their homes. Some borrowers may choose to originate a cashout refinance loan even if the interest rate is similar to their existing rate, such is the value of partially liquidating their equity position. Having the consumer-level data to identify what equity positions are and the current interest rate is crucial to crafting personalized, effective marketing offers. The ability to target qualified customers with a personalized offer is critical given that in August 2024, over 2.9 million cashout direct mail offers were mailed to consumers.1 Streamlined refi: The VA and FHA have streamlined refinance programs that minimize the consumer lift to refinance their loan. Additionally, there are also non-VA and FHA loans that could benefit from what is called an “Express Title,” which removes the need for a full title workup and expedites the originations process. Borrowers that meet the criteria for these streamlined refinance offers can be identified using credit data. Since these refinances are easier for consumers, they will be more likely to respond and book a refinance offer, which means more ROI for your marketing spend. Home equity lines/loans: Similar to cashout refi, home equity products are an option for consumers to access the equity they have in their price-appreciated homes. Although this is no mystery to most lenders, many lenders do not leverage adequate data or analytics to identify the needle in the haystack of customers that still remain to be targeted. Experian data shows over $25B in monthly HELOC originations as of August 2024. Understanding which consumers have a second lien position available, how much equity they have by leveraging trade-level mortgage data and Automated Valuation Model (AVM) data, and other methods can help your home equity products stand out from the sea of offers in the mail and online. At Experian, we help our clients target and originate all four categories of borrowers: rate & term refinancers, cashout refinancers, streamlined refinancers, and home equity borrowers. Crafting a marketing strategy with the accurate data to precisely identify which consumers qualify for which product is crucial to making the most of your marketing spend. Without the guidance of such data and the personalized offers they enable, your marketing message is liable to be lost among all of the other direct mail and email blasts. Market with confidence Crafting an effective holistic marketing strategy across these segments is crucial to campaign success. Consider these borrower situations and prepare to respond with confidence: Does the consumer have a high interest rate? Would the consumer benefit from a quick rate & term refi? If yes, ship the offer out. Does the consumer have a significant equity position and outstanding revolving debt balances, but not qualify for a rate & term due to a relatively low rate? If yes, ship them a cashout refi offer with language about using their equity to pay off revolving debt. Does the consumer meet the criteria for a streamlined refi, and would they benefit financially from such an offer? If yes, ship them a VA IRRRL (Interest Rate Reduction Refinance Loan), FHA streamline, or an offer to cover their refi title expenses if they qualify for an express title. Does the consumer have an open second lien on their primary residence, but not qualify for either kind of refi? If yes, ship them a home equity offer. By creating this kind of specialized marketing waterfall, lenders can ensure they have valuable offers for all borrowers, not just for a specialized market. Such strategies allow you to target your existing portfolio or a prospect population to facilitate portfolio growth and prevent portfolio attrition. Be sure to join our upcoming webinar, "Return of the Refi: Top Lending Strategies for Becoming a Refi Master." Register now and learn more about how Experian can help you win more mortgage and home equity customers in this declining rate environment. Register now Learn more 1 Mintel data

Colorado has a great deal to offer first-time homebuyers (FTHBs). While the Denver area attracts many people with its combination of outdoor recreation, culture, and economic opportunities, other parts of Colorado are worthy of attention as well. Take Colorado Springs for example – it ranks third among best places to live in the U.S. when considering lifestyle, the job market, and overall popularity.1 Overview of the Colorado FTHB market Colorado accounts for 2.15% of all U.S. first-time homebuyers, according to Experian Housing’s recent first-time homebuyer report. This figure puts Colorado in the top 20 of all states across the country. Colorado's charm holds a special appeal for younger generations. Known for its wealth of enriching experiences, Colorado naturally attracts adventure-seekers. With an array of outdoor activities like hiking and skiing, it's no wonder that Generation Y and Generation Z make up 75% of all first-time homebuyers in the state, surpassing the national average of ~70%. Affordability With three-quarters of all FTHBs in the younger market segments, affordability is a key consideration in buying a home as housing costs are a significant part of an individual or family’s overall cost of living.2 What determines affordability? Affordability can be assessed through various metrics. For the purposes of this study, Experian Housing defined affordability by calculating the rent-to-mortgage ratio (RTM). This involves comparing monthly rent payments to monthly mortgage payments. A higher rent-to-mortgage ratio suggests renters may find mortgage payments more feasible, potentially making home buying a more appealing option. Comparison of rent costs to mortgage costs What we observed: Based on the RTM ratio, home buying is most affordable in Colorado Springs, Pueblo, and Castle Rock, while renting may look more attractive in Lakewood, Fort Collins, and Arvada. Additional measures to consider: Other realities play a key role in determining what is affordable. A prospective homebuyer’s income, monthly expenses, downpayment funds available, and the cost of the rent or mortgage payment as an added expense against income, factor heavily in final decision-making. In this regard, Experian Housing examined other metrics for assessing affordability. Debt-to-income What we observed: Down payments Sample of CO data observations: (High, mid, low down payments) Sale prices and income What we observed: Experian Housing examined the median sales prices and median incomes across the U.S. This metric is useful to see how much of one’s income typically is going to housing costs in a given area, which again, impacts overall cost of living. Comparison is essential because while sales prices may be higher in a given area, correlation with income helps determine affordability. A closer look at Colorado Springs Colorado Springs ranks #1 in affordability based on Experian’s research, and its status of best affordable place to live considering overall living costs, jobs, and livability is solid.4 The younger generation is the fastest growing population in Colorado Springs. Colorado Springs is expected to be the largest city in the state by 2050 given its current rate of growth and expansion.5 In addition to its five military installations, with a huge U.S. Air Force presence, key job sectors include the larger defense industry, education, technology, and manufacturing. Affordability coupled with opportunity and lifestyle suggest Colorado Springs deserves a closer look and area mortgage lenders have a lot to tout. Experian’s data system offers unique value to lenders given the ability to take a more comprehensive look at a borrower’s financial behavior. Experian uses credit, property, rental, and other alternative data sources to capture the borrower profile. Access to such data also gives Experian a unique ability to conduct research for reports like this one, and the recent reports on Texas and Florida. For more information about the lending possibilities for first-time homebuyers, download our white paper and visit us online. Download white paper Learn more 1 US News & World Report: Best Places to Live in the US 2024-2025 https://realestate.usnews.com/places/rankings/best-places-to-live 2 https://www.experian.com/blogs/insights/top-destinations-for-first-time-homebuyers/ 3 Arvada, Lakewood and Castle Rock, part of the Denver Metro Area and what is popularly known as the Front Range Urban Corridor, also have price to income ratios of 2.8%. 4 https://www.sofi.com/best-affordable-places-to-live-in-colorado/ 5 Colorado Springs Chamber & EDC, coloradospringschamberedc