How innovation and technology drive an optimized home equity experience
Lenders rise to the demands of the home equity market by embracing new tools and modernized processes.
Demand for home equity loans and lines of credit has been a bright spot in an unpredictable housing market. Because of this, the need for tech-enabled solutions to make the process more efficient and easier is essential.
By meshing innovative home equity technologies with expertise and insight unrivaled in the mortgage industry, ServiceLink knows how to leverage technology to its fullest. We customize solutions to meet your unique requirements, minimizing your exposure to operating and financial risk and navigating situational complexities as they arise. We can also help you develop and implement high efficiency processes and create a customer experience that gets borrowers to the closing table fast and truly sets you apart from the competition.
“High demand – combined with reduced purchase activity – has lenders taking a fresh look at their home equity products and services,” says Barry Coffin, managing director, home equity title & close, ServiceLink. “How can they create an exceptional borrower experience while reining in the costs of producing a loan? Technology and process innovations are key: Advances in title and close, flood and valuations are all reducing the time and cost of getting borrowers to the closing table.”
The demand for technology is only increasing as it provides many benefits in the mortgage process. Of the over 1,500 respondents surveyed in the 2024 ServiceLink State of Homebuying Report (SOHBR), 56 percent of respondents said convenience and ease of use in mortgage technology was the biggest benefit. 52 percent said time savings, 39 percent said the flexibility it offers to make progress on their own schedule, 31 percent said cost savings and 26 percent said transparency into the process. Lenders who share the mindset of the tech-savvy borrowers seeking loans and lines are poised to cash in on the current home equity state, explains Sandeepa Sasimohan, vice president, title automation, ServiceLink. “Product innovation is essential in this market, whether lenders are trying to gain or retain customers. Borrower demographics are leaning heavily toward the mobile-first generation, which expects technology to clarify and enhance their journey. Innovations can set lenders apart in this competitive environment.” The SOHBR survey found that home equity varies greatly by generation: 56 percent of baby boomers, 32 percent of Gen X, 20 percent of Gen Z and 19 percent of millennials reported having home equity of greater than $100,000. Despite having the lowest home equity, the mobile-first generations demonstrated more interest in utilizing it: 47% of Gen Z and 41% of millennials said they plan to leverage their equity by taking out a home equity loan in 2024, while just 29% of Gen Z and 7% of baby boomers planned to do the same.
Home equity innovations for speed:The latest technology, processes and products
For home equity transactions, speed is the name of the game. Borrowers expect it and lenders benefit from it, for both capturing market share and lowering costs. Coffin says that streamlined settlement processes can play a huge role in enabling lenders to meet their home equity application-to-close goals. “Your service partner should provide support that helps you shrink transaction turn times, whether you are working toward bringing your average close from 35 days down to 10, or from 10 days down to three to five,” he says. “We do this at ServiceLink by applying advanced technology — digital title solutions, automated inspection and appraisal tools, consumer-facing scheduling apps and eClosing options — and working with you to optimize your internal workflows and processes.”
Tech-enabled title solutions
Automation is infused through all of ServiceLink’s title offerings. With our instant title solution, home equity lenders can provide borrowers with a closing timeline at the very beginning of the home equity lending process, helping to ease the uncertainty often associated with a major financial decision like a home equity loan. It also reduces the overall origination cycle time, helping lenders meet their turn time goals. ServiceLink combines this efficiency with a commitment to quality. Backed by Fidelity National Financial, ServiceLink has access to robust, quality property data sources - nationwide. With our scale and cascade of title offerings, lenders can ensure their underwriting requirements are met whether that means legal and vesting or property reports or full instant title commitments. Lenders can easily transition between uninsured and insured based on underwriting.
State-of-the-art closing options
Technology facilitates home equity closings as well, through tools such as:
- EXOS® Close: An app that enables the borrower to self-schedule their closing by gaining direct access to signing agents’ availability.
- Remote and hybrid signing options: Solutions that help lenders create a differentiated customer experience that includes getting to the closing table faster.
EXOS Close, a consumer-facing digital scheduling technology, has the potential to shave days off the application-to-close journey and affords you a more efficient process. Almost all the consumers who have used it to date selected the first available day to close. The app has reduced reschedules, too — by nearly 100 percent. Closing appointments are confirmed within five seconds, and the lender receives notifications of key milestones for transparency throughout the process. Moving on to remote and hybrid signing options, most states have enacted legislation that allows signings to take place virtually. Lenders equipped to accommodate requests for fully remote eClosing options — remote online notarization (RON) and in-person electronic notarization (IPEN) — and hybrid signings can not only provide borrowers with convenient alternatives to traditional in-person signings, but also streamline their processes and free notaries to certify more documents in less time. Using IPEN or hybrid closings, lenders can experience the benefits of electronic notarization while still closing in-branch. A borrower who closed remotely with ServiceLink recently commented, “Amazing process. Streamlined, easy and efficient.” Notary quality is, of course, critical. Coffin recommends consolidating the signing experience under a single provider that can manage eSign and remote online notarizations, as well as traditional wet signs. “ServiceLink’s single signing solution combines an experienced, accessible network of real estate notaries and attorneys with EXOS Close technology, which enables the borrower to control the timing and format of their closing,” he says. “This process expedites scheduling the appointment, getting the documents back and receiving notification that the loan has closed — stages in the process that can take much longer and require much more effort when multiple providers are involved.”
Innovative flood solutions
At a time when flood maps are constantly changing, technology helps ensure that lenders can quickly assess whether a home equity property requires flood insurance. ServiceLink Flood allows lenders to customize products based on their risk appetite and borrower needs. For example, QuickCheck technology provides an instant response informing lender and borrower whether the subject property is in or outside of a FEMA Special Flood Hazard Area (SFHA). For properties that require flood insurance, ServiceLink’s InstaQuote quickly researches insurance costs. Then the lender can obtain a Basic Flood Zone Determination and Life of Loan Flood Zone Determination. Another exclusive ServiceLink tool, CertMap®, helps minimize borrower disputes by clearly illustrating why flood insurance may be required. CertMap incorporates high-resolution FEMA images, digital road layers, and full-color satellite and aerial images to disclose a property's proximity to the FEMA flood zone.
Modern valuation services
Home equity borrowers and lenders alike are benefiting from valuation technology that runs the gamut from instant digital scheduling to automated inspections and valuations. ServiceLink offers valuation products ranging from desktop appraisals, AVMs and hybrid valuations to traditional full appraisals. ServiceLink’s dedicated home equity operations and customer service team, and experienced national appraiser panel, back this technology with human expertise on the lender side.
On the consumer side, the EXOS® Valuations self-scheduling platform reduces time and offers transparency by enabling lenders or borrowers to schedule within minutes or even seconds when an appraisal is required. Borrowers know who will be inspecting their home and what type of vehicle they can expect them to arrive in.
Vendors also benefit from technology enhancements – experiencing accelerated processes that they pass along to the lender and borrower. In many cases, technology makes the inspection process quicker and more accurate than before: A mobile app guides the user to ensure a full view of the entire home, and specially designed camera equipment captures high-quality, 3D images and automatically fills in the data collection report.
Home equity success: The right partnership makes the difference
Technology can be an amazing tool for building efficiency, accuracy and transparency into your home equity processes. But getting the most from these innovations and advances requires having a knowledgeable, experienced, committed technology partner.
Reach out to us today to see how ServiceLink and our EXOS® technology can support your home equity efforts.
