Core Insights - The average HELOC rate is currently 7.75% and is expected to continue decreasing through the end of the year [1][2] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, making HELOCs an attractive option for accessing funds without selling homes [3] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit scores and other factors [4][5] HELOC Rates and Trends - The highest HELOC rate in 2025 was recorded in January, with a decrease of 31 basis points since then [2] - Current HELOC rates are influenced by the prime rate, which is at 7.25%, plus a margin set by lenders [4] - Introductory rates can be lower, such as FourLeaf Credit Union's 5.99% for the first 12 months, but will convert to a variable rate afterward [8] Home Equity Utilization - HELOCs allow homeowners to access their equity without refinancing their primary mortgage, which is beneficial when primary mortgage rates are low [6][12] - The flexibility of HELOCs enables homeowners to borrow only what they need, avoiding interest on unused credit [9] - Monthly payments on a $50,000 HELOC at a 7.75% interest rate would be approximately $323 during the draw period, but rates are typically variable [13] Considerations for Borrowers - Homeowners are encouraged to shop around for the best HELOC rates, as they can vary widely based on individual creditworthiness [5][11] - It is advisable for homeowners to consider the purpose of the HELOC, whether for home improvements or other expenses, and to be disciplined in repayment to avoid long-term debt [12]

Core Insights - HELOC rates have decreased slightly due to the Federal Reserve's quarter-point rate cut, with the national average APR on a 10-year draw HELOC now at 8.47% [1] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, making HELOCs an attractive option for accessing this value without selling their homes [2] - The current prime rate is 7.50%, which influences HELOC rates, typically calculated as an index rate plus a margin [3] HELOC Rates and Market Dynamics - HELOC rates range from 7.8% to 9.34%, with lenders offering flexibility in pricing based on credit scores and debt levels [2][4] - Introductory rates for HELOCs can be significantly lower but may adjust to higher rates after an initial period, making it essential for borrowers to compare offers [4][7] - The best HELOC lenders provide low fees, fixed-rate options, and generous credit lines, allowing homeowners to access equity as needed [5] Usage and Financial Strategy - A HELOC allows homeowners to maintain their low-rate primary mortgage while accessing home equity for various needs, including home improvements or personal expenses [10] - Monthly payments on a $50,000 HELOC can be around $395, with a variable interest rate starting at 8.75%, emphasizing the importance of borrowing and repaying within a shorter timeframe [11] - Homeowners are encouraged to consider HELOCs as a viable financial tool, especially when they have substantial equity and low primary mortgage rates [10]

Financial Data and Key Metrics Changes - The company reported funded volume of $561 million in Q1 2025, exceeding guidance and marking a 32% increase from Q1 2024 [5][15] - GAAP net income for Q1 2025 was $80 million, or $3.17 per share, compared to a net loss of $16 million, or $0.58 per share in Q1 2024 [6][16] - Adjusted net income improved to $13 million, or $0.52 per share, a $20 million improvement year-over-year [7][17] - Adjusted EBITDA totaled $29 million, representing a significant increase from breakeven in Q1 2024 [17] Business Line Data and Key Metrics Changes - The wholesale channel exceeded volume expectations, contributing to overall guidance being surpassed, although it carries lower margins [18] - The company saw a 40% increase in initial thirty-day sales conversion rates and a 12% reduction in cost per opportunity [12][19] Market Data and Key Metrics Changes - The company benefited from a lower rate environment, with the ten-year treasury falling approximately 35 basis points [6] - April 2025 was noted as the best month for submission and funded volume in the last two years, indicating strong market performance [26] Company Strategy and Development Direction - The company launched the "A Better Way with FOA" campaign to reposition reverse mortgages as a mainstream financial planning tool for homeowners aged 55 and up [8][10] - The strategic focus is on enhancing customer engagement and optimizing the customer journey, with a goal of improving lead conversion metrics [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy, highlighting the increasing awareness among older homeowners regarding home equity [22] - The company reaffirmed its full-year guidance for funded volume between $2.4 billion and $2.7 billion and adjusted EPS between $2.6 and $3 [20] Other Important Information - The company has seen a 25% year-over-year reduction in general and administrative expenses, with a notable 35% decrease in communication and data processing expenses [19] - The leadership change with John Scarpatti being promoted to Chief Production Officer is expected to unlock growth potential [13] Q&A Session Summary Question: How did rate volatility in April impact volumes? - Management noted that April was the best month for submission and funded volume in the last two years, indicating strong performance despite rate volatility [26][27] Question: What is the outlook for expenses going forward? - Management indicated that the fixed cost base is relatively stable, with opportunities for cost reductions as contracts renew, while variable expenses may increase with production [28][29]