Blend Announces Availability of Soft Credit Functionality

Rhea-AI Summary

Blend announces the launch of soft credit functionality in its cloud banking services. Lenders can save up to $50 per file with this feature, reducing costs by 71%. Soft credit inquiries will no longer impact borrower credit scores and may help prohibit the sale of applicant information. Blend leads the charge in implementing these innovations.

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• Blend's soft credit functionality can save lenders up to $50 per file, reducing costs by 71% compared to hard inquiries. This cost-saving feature could positively impact Blend's stock price as it attracts more lenders to adopt their cloud banking services.

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SAN FRANCISCO--(BUSINESS WIRE)-- Blend, a leading provider of cloud banking services, today announced the general availability of functionality providing support for soft credit inquiries in the mortgage prequalification process.

The launch of soft credit functionality comes amid a “massive” increase in costs for lenders requesting hard tri-merge credit reports—reportedly an increase of up to 400% for some lenders, a cost that must be absorbed if a borrower’s application does not advance. With Blend’s soft credit functionality, lenders can expect to save about $50 per file for borrowers at this high-attrition stage of the process. Initial data from Blend shows that lenders who have adopted soft credit into their workflows have saved up to 71% compared to utilizing all hard inquiries.

Consumers also benefit from the utilization of soft credit pulls, as the inquiry will no longer adversely impact borrower credit scores the way hard inquiries do. Additionally, consumers will no longer be subject to “trigger leads”—the sale of a mortgage applicant’s information to data brokers or other mortgage companies—a practice Congress is currently considering prohibiting.

“With our new soft credit feature, we’re excited to provide a capability that so many of our customers have been asking for,” said Nima Ghamsari, Head of Blend. “The cost savings for lenders and increased protection for borrowers is a win-win for the mortgage industry, and we are proud to be leading the charge in implementing these innovations.”

Please visit https://blend.com/products/features/soft-credit/ for more information about Blend’s soft credit prequalification.

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.

Forward-Looking Disclaimer

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 uncertainties. Forward-looking statements in this press release may include, but are not limited to, our expectations regarding our product roadmap, future products/features, the timing of new product/feature introductions, market size and growth opportunities, macroeconomics and industry conditions, capital expenditures, plans for future operations, competitive position, technological capabilities and strategic relationships, as well as assumptions relating to the foregoing. The forward-looking statements contained in this press release are subject to risks and uncertainties that could cause actual outcomes to differ materially from the outcomes predicted. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other comparable terminology that concern Blend’s expectations, strategy, plans or intentions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which such performance or results will be achieved, if at all. Further information on these risks and uncertainties are set forth in our filings with the Securities and Exchange Commission. All forward-looking statements in this press release are based on information available to Blend and assumptions and beliefs as of the date hereof. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. Except as required by law, Blend does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230523005501/en/

Gene Kim

press@blend.com

Source: Blend

FAQ

What is Blend's soft credit functionality?

Blend's soft credit functionality is a feature in their cloud banking services that allows lenders to save up to $50 per file by using soft credit inquiries instead of hard inquiries.

How much can lenders save with Blend's soft credit functionality?

Lenders can save up to $50 per file by using Blend's soft credit functionality, reducing costs by 71% compared to utilizing all hard inquiries.

What is the benefit of soft credit inquiries for borrowers?

Soft credit inquiries do not impact borrower credit scores, unlike hard inquiries. They also help prohibit the sale of applicant information to data brokers or other mortgage companies.

Who is leading the charge in implementing these innovations?

Blend is leading the charge in implementing these innovations with their soft credit feature in their cloud banking services.