Express CES: A Broker Tool for Simpler Fixed-Rate Second-Lien Financing

At Newrez, we want our Broker partners to seize their opportunity to capture second-lien business. If you’ve held back on closing second liens because you think they might slow you down, we’ve created a process enhancement to make your life easier—Express CES.

Did you know that in 2025, the Newrez Wholesale portfolio had $16 billion in accessible equity? Have you taken advantage of that potential revenue?

At Newrez, we want our Broker partners to seize their opportunity to capture second-lien business. If you’ve held back on closing second liens because you think they might slow you down, we’ve created a process enhancement to make your life easier—Express CES.

With Express CES, we’ve reduced the disruption to your workload. Newrez takes on the processing, underwriting and closing of your Closed End Second lien, so you can focus on nurturing borrower relationships and building your pipeline.

This article lays out the basics of Closed End Second liens and explains the benefits of our process enhancement, Express CES. Curious for more information? Reach out to your Newrez Wholesale AE. 

What Is a Closed End Second?

A Closed End Second (CES) mortgage is a fixed-rate second-lien loan that lets homeowners tap their equity without altering their existing first mortgage. Borrowers receive a single lump-sum payment at closing and repay it over a set term with fixed monthly payments.

Newrez’s CES product is called the Newrez Home Equity Loan, and it differs from a Home Equity Line of Credit (HELOC) that offers revolving credit during a draw period. A CES enables predictable payments at a fixed rate, making it an attractive option for equity-rich borrowers who want to preserve their low-rate first mortgage. 

Why Closed End Seconds Matter for Brokers

The size of the second-lien market is significant, yet Brokers might avoid closing these types of loans because of perceived complexity, operational burden or unfamiliarity. As a result, second-lien opportunities could be lost to other lenders, even when Brokers already have a strong relationship with the borrower.

The Opportunity

To put the second lien market in perspective:

• Over $16 billion in tappable equity sat in the Newrez Wholesale portfolio in 2025.
• More than 1 in 4 Newrez Wholesale borrowers had enough home equity in 2025 to qualify for a Closed End Second.
• In 2025, the average Newrez Wholesale borrower had nearly $300,000 in available equity.
• Equity-rich borrowers may not want to refinance their first mortgage in today’s rate environment, making a second lien a natural solution.

Closed End Seconds could enable Brokers to retain borrower relationships and protect revenue, rather than sending that business elsewhere.

Introducing Express CES: A More Efficient Way to Originate Closed End Seconds

Express CES is a digitally streamlined, low-friction process enhancement designed to help our Wholesale partners take advantage of the second-lien market without weighing down their workload.

The Express Advantage:

• A Simpler Broker Experience: We handle the processing, underwriting and execution through our industry-leading Closed End Second team, so you don’t have to. Your borrowers receive direct updates from Newrez throughout the process, and you’re notified at key milestones—giving you a smoother, more efficient workflow.
• Keeping Brokers Front and Center: Newrez values your connection with your borrower. We keep your name prominent in all borrower communications both via email and the online portal, reinforcing the relationship you have with them.
• More Time to Nurture Borrower Relationships: Reduced lift means you get more time to strengthen borrower connections and grow your pipeline. Cultivating second-lien business gives you another meaningful touchpoint with your borrowers while helping them access cash they may need for debt consolidation, home renovations or other major goals.
• Tap Into an Overlooked Market: If you’ve been focused on first mortgages, don’t let the sizeable second-lien market escape your attention. Equity-rich homeowners may be looking for a way to access cash without disrupting their low-rate first mortgage. A Closed End Second offers borrowers a fixed rate, predictable payment, hybrid closing and no appraisal requirement.
• No-Cost Credit Pull: Our zero cost soft credit pull¹ gives you an instant view of liabilities and credit score. Plus, enjoy a no-cost AVM.²
• Higher Loan Limits: Eligible borrowers may get up to a $500,000 loan. Plus, our CES allows for investment properties—up to 10 financed properties.

Express CES is meant to facilitate speed and simplicity for our Wholesale partners while keeping them fully supported by AEs and the rest of our team throughout the process.

Common Use Cases for Borrowers

Homeowners could benefit from pulling cash from their equity in a number of ways, including but not limited to:

• Making home improvements and renovations
• Consolidating high interest debt
• Covering education expenses
• Paying medical costs
• Supporting large events such as weddings or destination vacations
• Other large, one-time financial needs

Best of all, they can meet their financial goals with a lump sum and pay it back in fixed monthly payments.

When a Closed End Second Mortgage May Make Sense

A CES might be ideal in situations where:

• The borrower wants to avoid refinancing an existing first mortgage
• The financing need is a one-time expense
• Fixed payments and rate stability are preferred
• Adequate equity is available

Not only is a CES a great touchpoint for your existing borrowers, but you could generate new business from homeowners whose lenders don’t offer a strong second-lien option. From there, you’ve opened the door to potentially getting their first-lien business down the road.

Take Advantage of Express CES

The second-lien market is too significant to pass up, and Express CES gives you a faster, easier way to tap into this potential.  With Newrez handling the heavy lifting, you can focus on your borrower relationships and unlock a potential revenue stream. For next steps, reach out to your Newrez Wholesale. AE.

¹ Tri-merge credit cost included in borrower fees on CD.
² TX loans do not allow for AVM and require full appraisal.

The Newrez Home Equity Loan program allows the borrower to keep their current mortgage rate unchanged while taking out a second mortgage at current market rates. The minimum credit score for this program is 660, and it is only available on properties with one existing mortgage lien. Loan amounts must meet program minimums and maximums, and loans are subject to maximum loan-to-value limits as well as other underwriting rules. Geographic restrictions apply.