BLND - Homeowners Gained $60200 In Equity On Average This Year — Blend’s New Digitized Home Equity Lending Software Will Make Accessing That Easier Than Ever
(NewsDirect)
Home equity in theUnited States hit record levels this year, exceeding $29trillion in the second quarter, according to the FederalReserve.
Thatrepresents a gain of nearly 28% in equity year over year, with the average homeowner gaining about$60,200 in equity. But sky-high inflation and a clunky, outdatedlending process have made using that equity difficult for manyhomeowners.
Theseopposing forces are creating increased demand for financial products— especially home equity lines of credit (HELOCs) — that allowhomeowners enjoying near-unprecedented home equity gains to tap intothat new equity while banks struggle with an outdated, largelypaper-based application process to approve new HELOC and home equityloan requests.
That’s why companies like Blend Labs Inc. (NYSE: BLND)are working to digitize the home equity lending space. The cloud-basedsoftware platform turns a slow, 30-plus step process from applicationto funding into a quick process that can be completed in about threesteps.
HELOC Demand Is Surging, ButBanks Are Still Relying On Outdated Paper-Based Applications
HELOC volume surgedalmost 50% in the first half of the year, as the revolvingline of credit with a variable rate and, usually, no origination feeis more attractive than a cash-out refinance for borrowers who lockedin historically low rates on their original mortgage in the last fewyears.
Homeownersare looking to leverage this spike in home equity to consolidatehigh-interest debts into lower-interest home equity lines of credit,make home renovations that could increase equity even further or useas a down payment on a second property to build up a real estateportfolio.
Thatincrease in HELOC volume is likely also thanks to the introduction ofdigital or tech-based solutions to the mortgage space that make iteasier for customers to shop around for financial products, comparerates and offers and complete the application process.
Traditionally, homeequity lending has been slow to modernize, relying on a paper-basedprocess with an average of 30 or more steps between application andfunding that can take over 45 days to close. A lot of this is becauseof the clunky manual process on the bank’s side that leaves thecustomer waiting while a banker reviews the application, verifiesassets and income, pulls credit, requests documents and so on.
To meet the increasingdemand, banks with the help of fintechs are finally taking thisopportunity to update and digitize that process so homeowners can tapinto their equity faster and more easily. Figure TechnologiesInc. (NYSE: FACA.U), for example, is using blockchain technologyto record and exchange data about a loan, automating much of themanual process that used to be needed. Meanwhile, Button Finance isusing artificial intelligence to speed up the decision-making andfunding process for home equity loans.
Blend Instant Home Equity Brings Much-Needed Digitization toHome Equity Lending
BlendInstant Home Equity is the latest from a company determined tobring digitization and tech-based solutions to the real estate andmortgage industries. The new product incorporates some of Blend’sexisting software, like its Blend Income Verification and remoteonline notarization platform, to create a faster and morecost-effective alternative to home equity lending.
The automated end-to-endproduct integrates identity and income verification, propertyappraisal, title, decisioning and notarization to cut the time andcosts associated with processing a home equity loan application. Forbankers, this makes it possible to generate a personalized offer forhomeowners, approve it instantly and close it in a matter of daysrather than weeks. For consumers, this means they can now easilyaccess their home equity for things like debt consolidation andmore.
Unlike otherfintechs in the home equity lending space, Blend uses modulararchitecture that makes it easy to develop new banking products thatall integrate into one platform. This allows banks to digitize more oftheir services without relying on multiple pieces of software that maynot integrate with each other. Banks incorporating the new BlendInstant Home Equity product can easily add its mortgage and otherlending software. That ecosystem approach seems to be working, too, asBlend reports that 71% of its current customer base uses two or moreBlend products.
As competition in home equity lending heats up, banks are goingto need digitization tools like these to handle larger volumes ofapplications while avoiding the long wait times that could drivecustomers to competing lenders.
Powering the Future ofBanking Blend is the infrastructure powering the future ofbanking. Financial providers—from the largest banks, fintechs, andcredit unions to community and independent mortgage banks—useBlend’s platform to transform banking experiences for theircustomers. Blend powers billions of dollars in financial transactionsevery day.
This post contains sponsored advertising content.This content is for informational purposes only and is not intended tobe investing advice.
This article contains forward-lookingstatements within the meaning of Section 27A of the Securities Act of1933, as amended, and Section 21E of the Securities Exchange Act of1934, as amended. These statements generally relate to future events,future performance or expectations and involve substantial risks anduncertainties. Forward-looking statements in this article may include,but are not limited to, our expectations regarding our productroadmap, future products/features, the timing of new product/featureintroductions, market size and growth opportunities, macroeconomicsand industry conditions, capital expenditures, plans for futureoperations, competitive position, technological capabilities andstrategic relationships. The forward-looking statements contained inthis article are subject to risks and uncertainties that could causeactual outcomes to differ materially from the outcomes predicted.Further information on these risks and uncertainties are set forth inour filings with the Securities and Exchange Commission. Allforward-looking statements in this article are based on informationavailable to Blend and assumptions and beliefs as of the date hereof.Except as required by law, Blend does not undertake any obligation topublicly update or revise any forward-looking statement, whether as aresult of new information, future developments, orotherwise.
Contact Details
InvestorRelations
CompanyWebsite
Copyright (c) 2022 TheNewswire - All rights reserved.