With home values reaching record highs, home equity loans (HELOAN) and home equity lines of credit (HELOC) are an increasingly smart financial option for consumers. However, many consumers are still turning to credit cards for home improvement and debt consolidation. We asked our bank and credit union partners why that is.
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What we learned was that despite fewer regulations, it can still take as long to close a HELOC as it does a mortgage. Financial institutions that can address the issues behind this broken process can tap into a rapidly growing market opportunity — according to TransUnion, HELOC originations are expected to double over the next five years.
To help our customers benefit from these changing market dynamics and positively impact the financial lives of consumers, today we announced the general availability of our digital HELOC and HELOAN products.
Accelerating access to home equity
Our new Home Equity solutions combine the industry-leading capabilities of our mortgage product with a distinct experience for home equity that includes more flexible configurations for data collection and delivery of disclosures.
The result is a digital experience that helps financial institutions cut costs by expediting the origination process while providing consumers with a seamless way to tap into their most valuable asset and achieve their financial goals. Our Home Equity products are now live at more than 20 top financial institutions, including U.S. Bank and Mountain America Credit Union. For HELOCs, customers are already reporting increases up to 3X in application pull-through rates and loan cycle times that are as much as 19 days shorter with Blend.
How did we do this? With a better journey that empowers consumers. On their mobile phone, consumers can connect directly to their financial accounts to verify assets and/or income, complete a list of tasks guided by intelligent data-driven workflows, and finish in as little as 15 minutes — all while making it easy for loan teams to track the status of applications and provide immediate assistance as needed.
Building a frictionless home lending future
As the lending industry confronts tight margins and evolving consumer expectations, we’re excited to help our customers take advantage of new growth opportunities. By offering a unified platform that delivers a frictionless digital lending experience across mortgage, HELOC, and HELOAN, we’re another step closer to making lending a seamless experience for everyone.