As Home Equity Lending Rises, ISGN Launches Home Equity Advantage™
ISGN CorporationTM (“ISGN”), a leading provider of end-to-end technology solutions and services to the U.S. mortgage industry, announced during the MBA’s 100th Annual Convention and Expo the availability of Home Equity Advantage™, a suite of products and services designed to help home equity lenders transform and scale their operations.
With the market environment now favorable for increased home equity lending, Home Equity Advantage combines technology, title/settlement, valuation and outsourced fulfillment in a cost-effective solution set targeted at the unique dynamics of the Home Equity process. Home Equity lenders who are just starting out or looking to build their existing business can choose one or all of the solutions in this set to enhance the borrower experience and mitigate risk.
The product set includes LienSureTM, designed to provide a framework for lenders to evaluate and mitigate specific risk factors when underwriting home equity lines of credit and close-end home equity loans. Home equity lenders can leverage LienSure as an alternative to uninsured products such as a deed report or property report without an insurance wrapper, thereby mitigating the risks covered by the policy. This product provides additional risk coverage at a cost-effective price point.
In addition to traditional appraisal products, ISGN offers a proprietary Desktop Evaluation, a reliable and accurate valuation solution completed by licensed, local appraisers. Leveraging the strength of industry-leading analytics combined with the local experience and expertise of a licensed appraiser, ISGN’s product meets state and federal regulations and is both USPA and IAG compliant. It can also be combined with a Property Condition Report to assess the subject’s current condition and the surrounding market.
According to Paul Imura, CMO of ISGN, “Home equity lending has historically been a viable product on a standalone basis and a counter-cyclical product to the first mortgage refinance market. During the mortgage crisis, home equity lending retreated as home values declined and equity evaporated, leaving many in a negative equity position.”
“Over the last five quarters, however, more than 3.2 million borrowers have reached positive equity,” Imura continued. “Because of this, coupled with a declining refinance market, ISGN predicts that the market will see an increase in home equity lending in 2014. With $5 trillion in untapped home equity as of the second quarter, lenders must prepare to meet this increased demand.”
“As competition for home equity customers accelerates, lenders will need to differentiate themselves by streamlining lending processes while remaining compliant and improving customer service,” said CEB TowerGroup Research Director Craig Focardi. “To accomplish these goals, lenders will need new technology and services that save time and lower costs while mitigating collateral value and title risks.”
Building capacity through outsourcing is another key focus of the product set. As new lenders enter or existing lenders scale, outsourcing is a strategy that can ease the challenges of building out capacity. Outsourcing can include a single process or the entire process from origination through funding. Backed by proprietary workflow technology, a team of industry veterans and the best practices in quality, this solution is transforming the borrower experience while mitigating risk.
“Since the mortgage crisis, many large banks have made public exits not just from wholesale home equity lending, but retail and consumer direct channels as well,” said Amit Kothiyal, CEO of ISGN. “But the environment has changed with three primary factors driving demand for home equity lending: More homes in a positive equity position; rising interest rates driving down refinance demand; and a wave of existing, maturing home equity lines over the next three years. Undoubtedly, some players will exit and we will see consolidation across the industry, but for others, the right strategy with the right solutions to capitalize on market changes will be paramount.”
ISGN has been serving the Home Equity Lending community for more than 25 years. To learn more about Home Equity Advantage, please visit ISGN at its booth #331 at MBA’s 100th Annual Conference and Expo.
Based in Palm Bay, Fla., ISGN is a leading end- to-end provider of mortgage technology and services, impacting almost 11% of all U.S. mortgage loans. Our 1,500 domain and technology experts have spent more than 20 years creating award-winning technologies and solutions to help financial institutions improve precision, reduce risk, manage volatility and effectively transform their business. With flexible staffing and delivery models, ISGN is uniquely positioned as one of the few comprehensive end-to-end mortgage service providers to both the origination and servicing sectors. The company works with a majority of the top ten national lenders, as well as with regional lenders, nonbanks, credit unions and community banks. For more information, visit www.ISGN.com.
Lauren Schuster, 678-781-7209
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