Key takeaways that help lenders assess and implement home equity products that move the needle

By Barry Coffin, Managing Director, Origination Title and Close, ServiceLink  

If there’s one theme we hear from home equity lenders, it’s that borrowers expect a faster, easier experience — and they’re willing to take their business elsewhere if they don’t get it. Lenders know that attracting home equity business is only part of the equation. The real challenge is guiding borrowers to the finish line with as little friction as possible while maintaining their confidence every step of the way.

Speed and borrower satisfaction have always been important measures of success, but delivering both consistently is challenging without the right technology and processes in place.

The reality is that traditional home equity workflows often fall short for both lenders and borrowers. Data from the Curinos Home Equity Originations LendersBenchmark shows that home equity application-to-booking cycle times vary by institution type. Why is speed in the home equity process increasingly important? Because Curinos’ analytics show there’s a strong correlation between high cycle times and low home equity pull-through rates, indicating borrowers may be finding alternative solutions if wait times are high.  

As competition intensifies, lenders should be asking themselves: How can we create a more efficient borrowing experience that helps us win business, improve pull-through and stay competitive?

I discussed those answers in a recent webinar called Home Equity Speed Matters: Turning Time Into Opportunity!, a collaboration between ServiceLink and Curinos. Below are a few key takeaways from this conversation.

#1: Improving speed starts with taking a closer look inward  

I can tell you from personal experience that almost every lender client we work with is looking to reduce cycle times. Speed wins, but it isn’t built overnight. An easy place to start is to look at your internal processes and see where the snags are occurring. Where are the transactions stalling out? Are there manual tasks that could be automated or workflows that could benefit from better technology? Is there one service provider that’s consistently causing delays?

By identifying these friction points and making targeted improvements, lenders can gradually remove hours — and eventually days — from the process. This time of discovery and introspection is crucial, says Curinos’ Ken Flaherty. He asked attendees, “If you’re not making improvements, what are you leaving on the table?”

#2: Identify the tech solutions for specific problems

Once you've identified the bottlenecks in your process, the next step is finding the right solutions to address them. That's where partnering with a provider that has a proven track record of delivering technology-driven efficiencies can make a meaningful difference.

At ServiceLink, we've spent decades helping lenders streamline workflows through innovative tools designed to improve speed, accuracy and the overall borrower experience. One example is our instant property information product, which helps accelerate home equity transactions from the very beginning. Through near-instant property searches, lenders receive more than 100 data fields, including tax, mortgage and lien information, giving them the insights they need to lock in their borrowers at point-of-sale and keep the process moving.

With key property information available upfront, lenders can quickly move to the next step — scheduling an in-person or eClosing appointment. In fact, lenders using ServiceLink's consumer scheduling tool have seen cycle times reduced by two to three days. If lender parameters allow, it even enables same-day eClosing appointments.  

Ultimately, organizations that are committed to improving cycle times must be willing to invest in the technology and processes that support those goals.  

#3: Meet borrowers where they are

Just as important as improving operational efficiency is understanding how today's borrowers want to engage throughout the home equity lending process. Expectations have shifted dramatically, particularly among Gen Z and millennial consumers, who make up a significant share of home equity borrowers and generally prefer digital-first experiences.  

An institution that offers intuitive digital tools, self-service options and streamlined online workflows is more aligned with modern consumer expectations. Lenders that continue to rely heavily on in-branch visits and manual touchpoints risk creating friction that can drive borrowers elsewhere.

For home equity lenders, the takeaway is clear: meeting borrowers where they are is no longer a differentiator — it's an expectation.  

Conclusion

Nothing underscores the importance of speed quite like Curinos’ data, which shows that borrowers who close quickly — within 1 to 15 days — are twice as likely to take a draw at closing. This initial draw not only helps lenders recoup origination costs but also reduces the likelihood that the line of credit will remain unused.  

As competition in the home equity market intensifies, delivering a faster, more seamless borrower experience can drive greater line utilization and profitability. For these reasons and many more, home equity lenders should consider implementing the strategies outlined above to differentiate themselves and gain a competitive advantage.

View the full webinar conversation here and learn more about ServiceLink’s home equity solutions here.

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