Knowing that consumer interest in accessing home equity is on the rise, Blend‘s mortgage point-of-sale platform now supports home equity loan and home equity line of credit (HELOC) products.
That means mortgage lenders using Blend’s digital platform can offer borrowers a fast and seamless experience when they apply for a home equity loan or line of credit.
“At this moment when Americans have built a record amount of equity in their homes, offering a frictionless way for them to take advantage of that equity to achieve their goals is paramount,” says Nima Ghamsari, founder and CDEO of Blend, in a release. “Today’s consumers expect seamless experiences throughout their financial lives, and with our digital home equity offerings, our customers are set up to continue thriving as the market grows.”
Blend reports that more than 20 customers, including U.S. Bank and Mountain America Credit Union, have been piloting the new functionality.
These customers have already seen up to 50% reductions in loan cycle times and increases of up to three times in application pull-through rates, the company claims.
According to Black Knight, American homeowners are currently sitting on a record $6 trillion in tappable equity.
At the same time, TransUnion forecasts 8.4 million HELOCs will be originated between 2019 and 2022.
Rising interest rates, inventory shortages, and general economic uncertainty have caused a slowing of the purchase mortgage market, which saw the lowest existing home sales in six years in December 2018.
Home equity lending is expected to be a growth market for lenders in 2019 as consumers take advantage of rising home prices to access credit at a lower cost.