Blend’s Mortgage Suite: Streamlined Digital Lending, Saving Resources through Automation

Blend, a digital lending software firm, reportedly helps lenders achieve over 10x return on investment (ROI) through its Mortgage Suite, according to a study conducted by MarketWise Advisors LLC. The study analysed Blend’s operational and financial impacts based on feedback from 106 Blend clients.

  • The software firm’s Mortgage Suite reportedly saved over 16 hours per file in 2023 due to product automation and streamlined application flows.
  • The increase in processing speed translated to higher loan closing rates and an average cost saving of $914 per loan.
  • Blend customers reported an average ROI increase of 10.15x, translating to lower origination costs and profitability opportunities.

Blend aims to deliver economic benefits to its customers by streamlining process flows and minimising transactional friction. The software’s effectiveness is primarily evaluated through three aspects: process automation, cycle time compression, and operational leverage.

Process automation involves automating the hundreds of discrete steps involved in the mortgage process. This can potentially eliminate up to 988 minutes of manual processes, resulting in significant time and cost savings. The study highlighted that new feature enhancements in the Blend Mortgage Suite increased the impact of process automation from 9.09 hours to 16.47 hours per file.

Cycle time compression refers to the time taken for a mortgage loan transaction. Historically, the process takes four to six weeks. However, with automation, lenders can reportedly eliminate about 8 days from the cycle time. Eighty percent of respondents indicated that Blend speeds up the processing cycle and helps them complete more loans.

Operational leverage, the last aspect, involves automating manual processes to change the business dynamics fundamentally. Blend’s customers reported a 40% increase in closing rates by deploying the technology. It also provides a better experience for borrowers, influencing the number of loans that pull-through. The financial impact of operational leverage is non-trivial, up to $545 per loan.

The study’s data was received through a comprehensive survey and direct interviews conducted by MarketWise Advisors, with 213 responses from across 104 companies.