Blend, a Silicon Valley technology company propelling the consumer lending industry into the digital age, announced it became the first end-to-end platform to be approved to provide asset verification reports for Fannie’s Desktop Underwriter.
Prospective borrowers can link to online bank statements, tax returns and pay stubs. That chops days off the approval process and reduces document fraud. Plans to expand its services this year to auto, student and other lenders.
Blend makes digital tools for mortgage lenders and tells LinkedIn that its clients control about a quarter of the $10 trillion mortgage lending industry.
“Our application accuracy has gone up, which has cleared up issues in the back office,” Sessler said. “There are no missing pages of a bank statement, no wrong Social Security numbers, because the borrower is getting the information directly from a provider.”
The five-year-old San Francisco firm is expected to announce its new customers Thursday along with a fresh $100 million fundraising round.
Blend’s technology offers banks an easy upgrade, compliant with regulatory demands and far cheaper than the $7,000 or so that a paper-based mortgage origination typically costs.
Since launching five years ago, Blend has helped major financial institutions make lending decisions to consumers, in many cases narrowing the time it takes to close a mortgage by seven to 10 days.
For many large lenders, processing and creating mortgages costs a lot of money, explained Blend CEO Nima Ghamsari. In fact, he estimated that banks spend $7,000 per loan on labor cost and other details.