The U.S. housing market has faced an affordability crisis over the past couple of years, which is now becoming increasingly acute. One of the most significant contributors to this crisis is a lack of inventory, especially in more affordable and entry-level homes that are attractive to first-time buyers.
Though construction was up in January 2018, it is not enough to keep up with demand; prices remain high. Our vision at Blend has always been to power a more frictionless, compliant, and accessible consumer lending ecosystem.
This is one of the driving reasons Blend has teamed up with Lennar and Fifth Wall to help streamline the mortgage application process and increase housing accessibility. Creating a housing market that’s easier to enter requires not only empowering lenders but also homebuilders themselves — who can actually affect inventory — with a data-driven application experience. Together, Lennar and Blend are reimagining the mortgage experience by reducing friction throughout the process at scale.
Reducing origination costs
As the largest homebuilder in the U.S., Lennar understands how the right technology partner can meaningfully increase access to home loans by reducing origination costs. The average mortgage continues to cost around $8,000 for a lender to originate, largely due to a very manual, paper-based process with increased regulation.
Now that Millennials comprise more than ⅓ of all home buyers according to the National Association of Realtors, it is more important than ever for lenders to provide a transparent and efficient process with a consumer-grade experience. Our work with Lennar is helping them provide this type of higher-quality experience today’s buyers demand.
What’s more, taking friction out of the system by leveraging verified source data, and cutting down on time and resources spent on the traditionally onerous process behind mortgages, will allow more consumers to participate, and free up resources for home builders to focus elsewhere.
Lennar and Blend’s partnership was a natural fit since both organizations are focused on delivering a frictionless customer experience at scale. Lenders using Blend already represent over 25% of the overall U.S. mortgage market, and our platform saw nearly $60 billion in mortgage applications in 2017 alone.
We’re not only excited about empowering Lennar customers with a data-driven application experience, but also look forward gathering their insights as we continue to reimagine lending. With Lennar’s history of innovation and broad reach in markets across the U.S., this collaborative effort has the opportunity to improve the home purchase process at the industry level.
A lending ecosystem for all
The future of lending is here, but it isn’t yet equally distributed among lenders. As a technology partner, Blend is committed to empowering lenders and home builders with an application experience that exceeds customer expectations, creates cost savings by streamlining the process, and fosters transparency for all stakeholders. We’re proud to work with Lennar, Fifth Wall, and our lender partners to forge a more open lending ecosystem for all.