SAN FRANCISCO--(BUSINESS WIRE)--Blend, a leading provider of cloud banking services, announced today that Paramount Residential Mortgage Group (PRMG) has seen a substantial increase in application conversions and significant cost savings after implementing Blend, which is the first digital banking platform to support soft credit pulls in the mortgage pre-qualification process.
PRMG has been a Blend customer for more than four years and was one of the first to pilot its soft credit solution with Automated Underwriting System (AUS) functionality in July 2022. The Corona, California-based lender previously relied on tri-merge hard credit pulls to pre-qualify borrowers, which can cost lenders upwards of $50 per credit file compared to nearly half the cost for a soft credit file. In addition, hard credit pulls may negatively impact the borrower’s credit score and can also result in the sale of trigger leads to data brokers and competing mortgage companies, adding friction to the borrower experience and impacting a lender’s pipeline.
“Before implementing Blend, our loan officers were spending considerable time and resources using tri-merge hard credit pulls early in the origination process. If the borrower decided not to move forward, we were forced to absorb the cost of that hard credit pull as a loss,” said Kevin Peranio, Chief Lending Officer at PRMG. “With Blend’s soft credit solution, you’re defending your time, your money, your borrower’s experience, and your loan pull-through.”
Lenders can expect to save up to 71% in costs after adopting soft credit into their workflows compared to utilizing all hard inquiries. And by minimizing the barriers associated with hard credit inquiries, lenders are more likely to increase conversion rates.
“Soft credit pulls help accelerate transparency and create informed consumers that can make better choices,” said Jordan Brown, Founding Principal and CEO of MarketWise Advisors, LLC. “It’s a nice intersection of technology and practical process improvement. This is a straightforward win-win for both the lender and the consumer.”
“PRMG has always been a frontrunner in adopting best-in-class lending technology,” said Nima Ghamsari, Co-founder and Head of Blend. “We are thrilled to see the impact that our soft credit feature has in helping them optimize their pre-qualification process, enhance risk assessment, cut costs, and ultimately provide their borrowers with a better lending experience.”
For more information on Blend’s soft credit pre-qualification, please visit https://blend.com/products/features/soft-credit/.
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.
‘Built by Originators for Originators’™
For over two decades, PRMG has established a very solid footing as one of the nation’s most innovative and fastest growing, multi-channel lenders in the mortgage space. PRMG boasts some of the best Martech in the business. We know the importance of technology, how it integrates with our systems and platforms, and how to leverage it for our originators and business partners to deliver best in class service! To learn more, visit prmg.net.
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.