We spend a lot of time at Blend thinking about the future of lending and helping our customers pinpoint all of the opportunities on the horizon. The team at HousingWire is clearly doing the same, with a recent article articulating the coming surge in home equity lending and how lenders can optimize this line of business in 2020 and beyond.
With last year’s refinancing boom behind them, lenders should get ready to profit from another big swing in the mortgage market — this time toward home equity. An estimated $6.24 trillion in equity is now available to 45 million U.S. homeowners, and equity grew in 97 of the 100 largest markets in the past 12 months.
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Home equity solutions have changed since many borrowers last purchased their home, increasing the likelihood of incorrectly calculated risks and rewards. To shift consumer sentiment on home equity, lenders need to reexamine their internal processes and do a better job of educating borrowers on the benefits of using home equity compared to tapping credit cards or taking out a personal loan.
It’s also critical for lenders to make sure they’re invested in the right technology to deliver an intuitive, customer-centric application process. Blend’s Digital Lending Platform, which enables consumers to complete an application in as little as eight minutes, cuts up to 20 days from home equity loan cycles.
Lenders should understand both the rapidly changing market and their customers’ expectations as they set their priorities for 2020.
Read the HousingWire article on “The business case for investing in home equity education and solutions now” for more key insights like these:
- Adopt a forward-looking strategy to deliver a much-needed solution for diverse financing options
- Consumers are staying in their homes longer — tap into the need for renovation when educating about home equity
- Invest in tech solutions that can handle mortgage, home equity, and other products in a unified solution
Ready to help consumers realize the full value of their home?