Home Point to offer HELOCs on blockchain

Will blockchain technology revolutionize mortgage lending? Moody’s has calculated that the annual cost-savings resulting from distributed ledger technology, or blockchain-based mortgage application processes, could be as high as $1.7 billion and will profoundly change home buying. That, however, is still in the future. So far, only a few of the nation’s top mortgage lender-servicers are taking it for a test drive.

Home Point Financial is one of the pioneers. Home Point announced it is now offering “a white-labeled digital home equity line of credit (HELOC) product” powered by Figure Technologies, Inc.’s blockchain technology and software as a service (SaaS) platform built on Provenance, a fintech administered by Provenance Blockchain, Inc. It is the newest customer licensing the Figure SaaS, loan origination system, natively integrated into the Provenance blockchain.

Home Point’s lending model, according to the company website, is non-traditional because it “bypasses traditional retail branches and partners,” exclusively relying on third-party originators and modern technology to empower customers.

The Ann Arbor, MI based digital lender presently has 250,000 borrower members.

Figure originates all its loans on Provenance. Loan origination programs include HELOCs, student loan refinancing, unsecured consumer loans and first lien mortgages. All products “eliminate time-consuming physical property appraisals and inspections, require zero paperwork and have earned five star customer service,” according to the company website.

By originating HELOCs with Figure and Provenance, Home Point can process loans quickly, lower lending costs, reduce risk, and “improve financing execution” throughout the loan process. Key features will be “fully integrated into Provenance to deliver origination, servicing, financing and capital market benefits,” the company said.

“As an institution that focuses on providing innovative approaches to lending, partnering with Figure will enable us to bring a groundbreaking HELOC product to our customers in record time,” said Willie Newman, president and CEO of Home Point Financial. “Our new digital HELOC offering shortens the time frame of loan funding by weeks and offers borrowers the ability to manage the entire loan process online.”

Home Point will now have access to the third-party Figure SaaS platform, “to our fast and efficient HELOC loan origination system, as well as the benefits and efficiencies of Provenance blockchain,” said Mike Cagney, CEO of Figure. “Home Point is one of the world’s leading mortgage lenders and the company has built its business focusing on speed, quality and consistency for its customers and partners.”



 

Gateway hits record fundings, opens new centers in Utah & S.D.

Record home financing demand from local communities is driving the Gateway Mortgage Group to spread out its local presence. A division of Gateway First Bank, Gateway Mortgage announced the opening of two new mortgage centers in Utah and in South Dakota to accommodate a significant surge in refinancing requests as people rush to take advantage of the low rates.

Gateway reported it has seen a record-breaking volume since 2019 and in 2020. This year, amid the height of the COVID-19 pandemic, “and just after the company celebrated the 20th anniversary,” Gateway’s monthly mortgage funding hit a new record high of $1 billion in a single month.

The second quarter results show the company continued to fund over $1 billion in residential mortgage loans in April, May, and June 2020.

Gateway has originated more than $5.3 billion in mortgage loans year-to-date through June, “putting the company on track to potentially surpass its record-breaking year of $7.7 billion funded loans in 2019,” according to a statement.

“Gateway continues to grow and expand its footprint to meet the increasing demand for mortgage services,” said Scott Gesell, CEO of Gateway. “Our momentum is a testament to our team members’ persistent focus on connecting with people.”

The new center in Spanish Fork, Utah brings Gateway’s footprint to four centers in the state, in addition to its existing mortgage centers in Farmington, Orem and West Jordan.

As the company expands its mark in Utah, “we look forward to having a physical location to help service the growth of Utah County and its surrounding areas,” said Gregg Driggs, mortgage sales manager. “As a team we will not only succeed but will serve to lift each other to bring value to our clients as well as our referral partners.”

Same as in Utah, an increased number of homeowners from South Dakota are refinancing to take advantage of lower interest rates, said Lorre Buhler, mortgage sales manager. The new center in Sturgis is Gateway’s third in the state of South Dakota, in addition to its Rapid City and Spearfish locations.

“Our strong South Dakota team is excited to help our local communities and be a stronger part of the Sturgis, SD economy,” said Amber Dodson, co-mortgage sales manager.

The company now operates more than 150 mortgage centers across the United States.

CSC adds 105 eRecording counties in 33 states

The pandemic has been good news for county level, electronic document recording (eRecording). It appears that COVID-19 and social distancing are motivating the growing expansion of digital document recording. eRecording provider CSC is one such contributor that announced it has added 105 new counties, in 33 states, to its growing e-network during the first half of 2020 alone.

“The first half of 2020 has tested the industry. We’ve been amazed by the agility and resilience of county offices, particularly those that had to implement entirely new electronic processes from scratch,” said Kevin Kinderman, market director of CSC’s real estate business. “Mortgage lenders, title and settlement firms, and industry associations have also shown tremendous tenacity.”

The Wilmington, Del., company said it is responding to demand by offering a secure, web-based eRecording solution “that can help county recording offices and document submitters” save time and streamline their workflows.

CSC specializes in eRecording technology designed to enable mortgage borrowers or other parties in the mortgage transaction to submit and record documents across the United States. The software helps reduce risk, document rejection and processing time during a document’s life cycle, and helps lower loan-processing costs.

To fast-track document recording, and to provide coast-to-coast coverage, CSC offers paper and electronic county recording. A full list of the 105 counties now on the e-network is available on the eRecording website.

CSC worked hard, shared educational resources, provided insights to colleagues, “and supported one another through very challenging times,” said Kinderman, who thanked staff and all of CSC clients and partners “for their perseverance.”

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