The need for speed: faster turnaround times for the equity of the home

After a decade of rising home prices, many homeowners today are sitting on a mountain of equity. Tappable equity reached a record high in the second quarter of this year, when 48 million mortgage holders reportedly had an average net worth of $213,000.

Over the years, that growing equity has translated into renewed interest in home equity (HE) products. Homeowners are still largely turning to these products to finance home renovations, but debt consolidation is a growing factor – rising from 25% in 2022 to 39% in 2024, according to the MBAs. Home loan research.

However, it is not enough to simply know why homeowners are tapping into their equity. Lenders must also position themselves to offer competitive products that meet the needs of their borrowers. Differentiating RE loan products is possible, and that starts with delivering faster turnaround times and a stronger consumer experience.

Time for change

In a running race and in the credit sector, speed wins. There are certainly opportunities for lenders to beat the competition when it comes to closing timelines for home equity products. According to the same MBA study, it took an average of 38 days to close a HELOC in 2024 (7 days longer than the year before). Mortgage loan processing times averaged 37 days. While that may be the average, it doesn’t have to be the norm. New automated technology has the potential to reduce HE timelines to as little as 8 days or less, better matching consumer expectations for speed.

Achieving faster turn times

For lenders who really want to go the extra mile, faster RE transactions start by working with experienced providers who offer a range of solutions. Let’s look at some key phases and how each can benefit from a technologically progressive approach.

It used to be that issuing ownership decisions took days, but now it takes just minutes. The introduction of automation into the underwriting process has led to the rise of instant title solutions. Generally, cloud-based automation engines sift through historical real estate data and then provide a snapshot of ownership status along with insight into any potential risks. This helps lenders immediately determine how quickly they can close the loan, followed by the ability to set expectations with the borrower in advance. These technological advances not only deliver speed, but also smarter and more accurate adoption – which is a win for everyone involved. While many providers claim to offer instant title, not all products are created equal, especially when it comes to the quality of data sources and scope of coverage. Consider working with companies that have stability and longevity in the title space, as well as clearly defined data protection measures.

Another speed differentiator is customer-facing scheduling apps. They give borrowers the ability to click a button and schedule their own closing appointment at the exact date and time they desire, eliminating the phone tag that can often delay a transaction. For example, ServiceLink’s proprietary scheduling solution provides real-time calendars from qualified notaries so borrowers (or their lenders) can select the first available time slot, keeping the transaction moving forward. In addition to requiring little to no technical support from the lender, this solution has been proven to reduce closing time by days.

Time can also be saved by providing borrowers with eClosing solutions that match their comfort level. While some are opting for traditional, in-person wet ink signings, others are eager to adopt virtual solutions that allow for more flexibility. Therefore, lenders that offer multiple options, such as: Remote Online Notarization (RON), In-Person Electronic Notarization (IPEN), and Hybrid Signatures, can not only provide borrowers with personalized choices but also streamline their processes. eClosing solutions can be up to 15 to 20 minutes faster – freeing notaries to certify more documents in less time – and they cost less to produce, saving the lender money.

For lenders looking to create even more efficiencies, consider modernizing the underwriting experience under a single provider, one that can manage RON and other hybrid solutions. Working with a single signing partner also eliminates the need for lenders to manage multiple relationships, making it much easier for them to scale their signing solution.

A better credit experience

Today’s borrowers are eager to adopt new technologies because they recognize their benefits. In the ServiceLink report on the state of home purchasing 202559% of borrowers said they value mortgage technology for its convenience and ease of use, while another 51% cited the time savings technology offers.

A technology-enabled approach to the mortgage process means lenders can provide transparency by clearly communicating to their borrowers what they can expect from the application through signature. Additionally, offering consumer-facing tech options is another way to meet their needs. Providing that consistent, customer-centric experience ultimately increases satisfaction and creates brand loyalty.

Meeting borrower expectations for speed, accuracy and convenience is extremely important and can prove to be a real differentiator in a crowded market. Now is the time to invest in technologies that support these pillars to take your organization to new levels of efficiency and borrower satisfaction.

Related