Blend’s Soft Credit Functionality Supports Fannie Mae’s Desktop Underwriter Early Assessment Enhancement
January 04 2024 - 7:05AM
Business Wire
Blend, a leading provider of cloud banking services, announced
today that it supports Fannie Mae’s Desktop Underwriter® (DU®)
early assessment enhancement with a direct integration from Blend’s
soft credit pull functionality. Blend’s soft credit pull feature
enables lenders to reduce the costs associated with the early
stages of the mortgage origination process, as well as help educate
borrowers earlier in their home buying journey.
Starting in 2023, the cost to pull a hard credit file has
increased and comes during a difficult time for an industry already
dealing with significantly high costs to originate.
Traditionally, early in the origination process, where buyer
fallout is highest, lenders will qualify borrowers by using a
“tri-merge” hard credit pull. If the borrower does not move forward
with that lender, the lender will typically absorb the cost as a
loss. As a result, the mortgage industry is moving towards using a
soft credit data file early in the origination process for
qualifying and assessment in the pre-qualification and pre-approval
phase.
Blend first piloted its soft credit functionality for lenders in
July 2022 and announced its general availability in May 2023. As
the first and only digital banking platform to support soft credit
pulls in the mortgage pre-qualification process, Blend has helped
its customers - including Paramount Residential Mortgage Group,
U.S. Bank, and PNC Bank - unlock significant cost savings, optimize
their pre-qualification process, and ultimately provide their
borrowers with a better lending experience. According to initial
data from Blend, lenders who have adopted soft credit pulls have
the potential to save up to 71% compared to utilizing all hard
inquiries.
With the availability of Fannie Mae’s DU early assessment, more
lenders will be able to leverage the benefits of soft credit
functionality within Blend’s digital platform.
“Early assessment in Desktop Underwriter can provide lenders
with increased certainty during their pre-qualification process,
which benefits borrowers as well,” said Mark Fisher, Vice President
of Single-Family Credit Risk Solutions at Fannie Mae. “We’re
pleased this offering is now available to enhance the experience
for both lenders and borrowers at the beginning of the mortgage
process, in particular allowing them to get an early look at
eligibility for our mission-oriented options for credit-worthy
borrowers.”
For more information on Blend’s soft credit pre-qualification,
please visit
https://blend.com/products/mortgage-suite/originations.
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. To learn
more, visit blend.com.
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This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements generally relate to future events, future
performance or expectations and involve substantial risks and
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