Banking Mortgage News

Blend Announces Availability of Soft Credit Functionality

Blend Announces Availability of Soft Credit Functionality

Blend, a leading provider of cloud banking services, announced the general availability of functionality providing support for soft credit inquiries in the mortgage prequalification process.

“The cost savings for lenders and increased protection for borrowers is a win-win for the mortgage industry, and we are proud to be leading the charge in implementing these innovations.”

The launch of soft credit functionality comes amid a “massive” increase in costs for lenders requesting hard tri-merge credit reports—reportedly an increase of up to 400% for some lenders, a cost that must be absorbed if a borrower’s application does not advance. With Blend’s soft credit functionality, lenders can expect to save about $50 per file for borrowers at this high-attrition stage of the process. Initial data from Blend shows that lenders who have adopted soft credit into their workflows have saved up to 71% compared to utilizing all hard inquiries.

Latest Fintech News: Frost’s New Broadband Switching Tool Makes Sustainable Living Easy and Affordable

Consumers also benefit from the utilization of soft credit pulls, as the inquiry will no longer adversely impact borrower credit scores the way hard inquiries do. Additionally, consumers will no longer be subject to “trigger leads”—the sale of a mortgage applicant’s information to data brokers or other mortgage companies—a practice Congress is currently considering prohibiting.

“With our new soft credit feature, we’re excited to provide a capability that so many of our customers have been asking for,” said Nima Ghamsari, Head of Blend. “The cost savings for lenders and increased protection for borrowers is a win-win for the mortgage industry, and we are proud to be leading the charge in implementing these innovations.”

Latest Fintech News: Silver Lake to Make €600 Million Strategic Investment in TeamSystem

About Blend

Blend is the infrastructure powering the future of banking. Financial providers— from large banks, fintechs, and credit unions to community and independent mortgage banks—use Blend’s platform to transform banking experiences for their customers. Blend powers billions of dollars in financial transactions every day.

Latest Fintech News: XTM Announces Proposed Acquisition of Certified EWA Solution & Processor, QRails

[To share your insights with us, please write to sghosh@martechseries.com]

Related posts

Great Southern Bank Opens New Commercial Loan Production Office in Phoenix, Arizona

Fintech News Desk

Radware Expands Relationship with One of Africa’s Leading Banking Groups and Top 10 Most Valuable Banking Brands

Fintech News Desk

Axio Named a 2020 Gartner Cool Vendor in Integrated Risk Management

Fintech News Desk
1