Blend Expands Beyond Mortgage with Launch of Digital Home Equity Products

New flexible workflows help lenders support customer needs in changing market

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Feb 12, 2019, 09:00 ET

SAN FRANCISCO, Feb. 12, 2019 /PRNewswire/ -- Blend, a Silicon Valley technology company propelling the consumer lending industry into the digital age, today announced the general availability of its new home equity loan (HELOAN) and home equity line of credit (HELOC) products. The offerings, already in use by more than 20 Blend customers including U.S. Bank and Mountain America Credit Union, represent the first expansion of the company's core lending platform beyond digital mortgages, and come at a time when consumer interest in accessing home equity is forecast to rapidly rise.

According to Black Knight, American homeowners are currently sitting on a record $6 trillion in tappable equity. At the same time, TransUnion forecasts 8.4 million HELOCs will be originated between 2019 and 2022. Rising interest rates, inventory shortages, and general economic uncertainty have caused a slowing of the purchase mortgage market, which saw the lowest existing home sales in six years in December 2018. Home equity lending is expected to be a growth market for lenders in 2019 as consumers take advantage of rising home prices to access credit at a lower cost.

As with many aspects of the home lending ecosystem, applying for a HELOC or HELOAN has traditionally been a slow, document-driven process. Blend's new products dramatically streamline the application and origination journey in both cases, enabling lenders to offer a best-in-class digital borrowing experience. Customers piloting the new HELOC application have experienced up to 50% reductions in cycle times.

"At this moment when Americans have built a record amount of equity in their homes, offering a frictionless way for them to take advantage of that equity to achieve their goals is paramount," said Blend CEO and Founder Nima Ghamsari. "Today's consumers expect seamless experiences throughout their financial lives, and with our digital home equity offerings, our customers are set up to continue thriving as the market grows."

Blend's home equity products enable lenders to increase customer lifetime value by providing a frictionless application experience for home equity products that can be completed on a mobile phone in minutes. Customers piloting the HELOC experience have reported increases of up to 3X in application pull-through rates and loan cycle times that are as much as 19 days shorter.

"At U.S. Bank, we want to simplify and streamline the banking experience for our customers to help them achieve their goals. For some, that means unlocking the equity in their home to build a new addition to their house, fund an education, or consolidate debt to ensure peace of mind," said Lynn Heitman, executive vice president, Consumer Banking Product Strategy & Support, U.S. Bank. "The U.S. home equity market is ripe with opportunity as American homeowners have a large amount of equity to tap and we're excited to work with Blend as they expand their business to provide home equity customers with an intuitive, fast and modern digital lending experience."

For more information, please visit blend.com/products/home-equity.

About Blend
Blend is a Silicon Valley technology company propelling the $40+ trillion consumer lending industry into the digital age through partnerships with banks, lenders, and other technology providers. Blend's cloud-based technology delivers speed and efficiency to lenders so they can serve the modern borrower and safely navigate the industry's changing rules and regulations.

Founded in May 2012, Blend is backed by Greylock Partners, Emergence Capital, Founders Fund, Andreessen Horowitz, 8VC, Lightspeed Venture Partners, and other leading venture investors. To learn more, visit blend.com.

PR Contact
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SOURCE Blend