Spring EQ CEO Joe Steffa on Why Home Equity and DSCR Lending Are Shaping the Market's Next Growth Cycle

Spring EQ CEO and Executive Chairman Joe Steffa spoke with HousingWire's Allison LaForgia to discuss the forces reshaping mortgage lending today, from affordability challenges and elevated rates to technology, customer service and the rise of non-QM loan products.

Here are the top takeaways from their conversation:

1. $20 Trillion in Untapped Equity Is Fueling Demand

That affordability squeeze is pushing more borrowers toward the equity already sitting in their homes. Steffa pointed to the $20 trillion of untapped equity across the country, with consumers tapping it for home improvements, savings and, increasingly, debt consolidation. He also sees home equity as a wealth-building tool, helping borrowers diversify, create tax-efficient strategies, and pass down generational wealth.

2. Technology Works Best When It Supports People

Borrowers care about four things, Steffa said: speed, price, ease of use, and customer service—and technology has a direct impact on several of them. Spring EQ has used technology to make faster loan decisions and lower its operational costs. Steffa was clear that the company has moved from humans supported by technology to technology supported by humans, a constant interplay he credits with setting Spring EQ apart from the rest of the pack. The company is also expanding operationally, with roughly 40% of its loans now coming from West Coast states and a growing office in Arizona.

3. Non-QM and DSCR Lending Are the Next Growth Engine

Steffa expects roughly $100 billion in non-QM originations this year, with the potential to grow three to five times over the next five years. Spring EQ has already rolled out a DSCR platform aimed at strong, creditworthy borrowers who simply do not fit traditional lending boxes.

Want to hear the full conversation?