The Federal Savings Bank (TFSB), a prominent veteran-owned financial institution with $1.18 billion in assets, has expanded its partnership with Blend Labs Inc. (NYSE: BLND), a leading digital banking platform, to implement Blend’s Rapid Refi solution. This collaboration aims to revolutionize the mortgage refinance process by reducing the time from application to Intent to Proceed to under 20 minutes. (GuruFocus)
Addressing Industry Challenges
The mortgage industry has long grappled with low refinance retention rates, averaging just 12%. This low retention is often due to outdated workflows and delays during the rate-shopping phase, leading to significant revenue losses. TFSB’s adoption of Rapid Refi seeks to address these challenges by providing a seamless, automated, and personalized refinancing experience.(Press Release Hub)
Features of Rapid Refi
Blend’s Rapid Refi leverages connected data and intelligent automation to streamline the refinancing process. Key features include:
- Automated Qualification: Borrowers can complete applications and receive disclosures in a single session without human intervention.
- Hyper-Personalization: The platform offers pre-filled applications and tailored loan options based on individual borrower profiles.(Blend)
- Speed and Efficiency: The entire process, from inquiry to Intent to Proceed, can be completed in less than 20 minutes.
Initial pilot programs with TFSB have shown promising results, including a more than 20% increase in borrower retention.
Future Developments
Currently, Rapid Refi supports conventional cash-out and FHA Streamline refinance options. Blend plans to expand the platform’s capabilities to include VA Interest Rate Reduction Refinance Loans (IRRRL) and conventional rate/term refinances in the first half of 2025. (Press Release Hub)
About the Partners
Blend Labs Inc.: Blend is a leading provider of digital banking solutions, offering platforms that streamline the loan origination process for financial institutions. Their technology is used by a wide range of banks, credit unions, and mortgage lenders to enhance customer experiences.
The Federal Savings Bank: TFSB is the largest privately held, veteran-owned bank in the United States. As a federally chartered bank, it operates nationwide, providing mortgage lending services across all 50 states. (Press Release Hub)
For more information on Rapid Refi and its capabilities, visit Blend’s Rapid Home Refi page.
Note: The above summary is based on available information and aims to provide an overview of the partnership between The Federal Savings Bank and Blend Labs Inc.
