Look for more banks to start securitizing home equity loans.

A recent Consumer Bankers Association survey of banks and thrifts found that 7% planned to start securitization programs this year for fixed-rate home equity loans, and that 6% would do the same for home equity lines of credit.

The plans were meant to keep pace with increased volume, according to the association.

The lenders would join a small group-9% of fixed home equity lenders and 5% of variable-line lenders-that were already securitizing their products last year, the survey report said.

The securitization plans come as more banks and thrifts step into home equity lending and are looking for ways to avoid overloading their portfolios with these loans.

Through securitization, loans are packaged and sold to an outside company, or conduit, and then distributed by Wall Street to investors.

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