Building toward a frictionless, compliant future

In 2008, the financial crisis shook America. Ten years later, evidence of the crisis is visible across the lending industry — especially in today’s loan origination processes.

Disclosures are a prime example of the complex operational challenges for lenders.

Compliance and process elegance are not mutually exclusive

Lenders are obligated to deliver disclosures, or large sets of documents for the borrower to review and sign. These disclosures packages must be painstakingly collected and manually reviewed, and pass a series of flagging and back-and-forth handoffs before being ready for delivery. Without a compliant digital process, lenders still deliver disclosures via physical mail for the majority of loans. This time-consuming, manual process isn’t just dangerous for compliance reasons — it’s a major cause of delays in loan funding.

We know there’s a better way.

Working toward an end-to-end digital experience

For the past five years, Blend has been working to strengthen and adhere to higher compliance standards, while elevating the borrower’s experience with a frictionless, end-to-end digital experience. Along the way, we’ve been working with lenders and top industry partners such as Wolters Kluwer® and Ellie Mae® to deliver holistic solutions that streamline lending workflows.

Today we’ve reached a milestone in our journey to a more frictionless future with an improved experience for borrowers and lenders that is both elegant and compliant.

For lenders, this improved disclosures process means that their borrowers can now stay within a single system for the duration of their mortgage application. Keeping borrowers within a single, trusted experience increases digital adoption. For example, with current lenders, we’ve seen more than 99% of borrowers provide their consent for electronic document delivery.

This high rate of digital adoption, combined with a streamlined way for originators to deliver and manage electronic documents has the potential to bring true cost savings and efficiency gains to lenders. It also paves the way toward easier compliance management for customers.

Our current solution saves at least $6 in mailing costs alone for every disclosure package that can now be sent through Blend. That includes disclosures throughout the lending process, including critical support for Loan Estimates and Closing Disclosures – so for lender customers, that savings is significant.

And with Blend’s participation in the Ellie Mae Network, lenders can now enjoy a solution that also allows for a seamless flow of loan data, documents, and disclosure information across their core lending systems. This includes full compliance tracking on each disclosure, and a simplified experience for reviewing, e-signing, and sending back initial and closing disclosures and redisclosures for lender retrieval in both interfaces.

Blend’s path forward

The lending industry is rapidly evolving. While the effects of the crisis linger, lenders and ecosystem partners today are working together to take big steps toward a safe lending environment that places the consumer at the center.

To build toward this, Blend will continue expanding our disclosure capabilities to support more complex loan scenarios and automation of disclosures management. We will also leverage our Marketplace to increase our coverage across loan origination systems and document generation providers to unlock value for more of our lending partners.

We are committed to the evolution of this experience as we continue to prioritize trustworthy, straightforward design and focus on the user’s journey. Our goal is to meet the industry’s regulatory and compliance standards while evolving a product that exceeds user expectations.