Spring EQ’s next chapter: CEO Joe Steffa shares insights on Spring EQ’s vision, HELOCs, and the future of the second mortgage market
Home equity isn’t just a number on a balance sheet. If used correctly, it has the potential to change the lives of homeowners across the country. HousingWire’s Allison LaForgia sits down with Joe Steffa, CEO of Spring EQ, to explore the company’s vision and how it’s helping borrowers access their equity safely and strategically. Steffa breaks down the factors driving the surge in home equity in a safe and strategic manner. He delves into the factors driving the surge in home equity utilization and what lenders and borrowers need to know to succeed.
This conversation delves into common misconceptions about home equity loans and HELOCs, Spring EQ’s roadmap for the coming years, and practical advice for homeowners considering tapping into their equity. Steffa also provides insight into what lenders can expect in the evolving second mortgage landscape and the opportunities it presents for the market.
“Vision starts with the homeowner,” Steffa said. “We’re focused on what homeowners need today and how they can continue to tap into the equity they’ve built. Home equity and volumes have been on the rise, and if we keep meeting homeowners where they are in their journey, we’ll continue to be successful.”
He added that Spring EQ’s customers extend beyond borrowers. “For us, the customer might also be a broker partner or a third-party vendor. We want to meet every one of them at the right point in their journey.”
With U.S. home prices up nearly 50% since January 2020, Steffa said the trend toward leveraging home equity is accelerating. “There are three main reasons borrowers cite when taking out a home equity loan,” he explained. “Debt consolidation, replenishing savings, and home improvement. The average age of a home in the U.S. is around 40 years old, so with people staying in their homes longer due to the lock-in effect from low pandemic-era rates, many are using their equity to make updates — new kitchens, finished basements, or exterior improvements.”
When it comes to Spring EQ’s own growth, Steffa said the company is scaling fast. “We grew from $1.7 billion in 2023 to $3 billion last year and expect to hit $4 billion in 2025 and $5–5.5 billion in 2026,” he said. “We’re also expanding our products. We’ve launched our non-QM program, including DSCR loans, and plan to roll out a bank statement program in early 2026. Non-QM originations are expected to reach $75–85 billion next year, and our goal is to become a top-three player there, just like we are in home equity.”
Steffa said there are several misconceptions attached to home equity. “You don’t need perfect credit to get a home equity line of credit or closed-end second mortgage,” he emphasized. “We go down to a 640 FICO and up to 90% LTV, so our credit box is wide. Many borrowers assume these products are only for emergencies, but that’s changed. People now use home equity to enhance their properties and, in turn, increase their value.”
He contrasted today’s market with the housing crisis of 2008. “Back then, homes were underwater. Today, borrowers are entering at much lower LTVs with significant equity built up. Lenders feel comfortable, and so do borrowers,” he said.
Steffa offered practical advice for homeowners exploring their options: “Do your research. Ask yourself: am I working with a bank, or an independent mortgage bank? How quickly can they fund? What kind of underwriting do they use? Partner with reputable companies,” he added. “Spring EQ has an A+ Better Business Bureau rating and has funded over $11.5 billion in home equity loans for more than 120,000 customers since our founding in 2016.”
Looking ahead, Steffa said the second mortgage market still has plenty of room to grow. “There’s over $5 trillion in agency mortgages trapped in 3.75% coupons or less,” he noted. “Even if rates come down, there’s still massive equity in play. With roughly $250 billion in current home equity originations, I think the space can continue expanding regardless of rate movements.”
He added that the perception of second mortgages has improved dramatically. “Home equity used to be a bit of a dirty word after 2008,” he said. “But that’s changed. Banks and IMBs have legitimized the product, borrowers understand it better, and the use cases are broader than ever.”
As Steffa put it, “The growth opportunities are there — and we just have to go out and achieve them.”
