Blend Labs partners with Truework to streamline lending

Published 26/02/2025, 22:06
Blend Labs partners with Truework to streamline lending

SAN FRANCISCO - Blend Labs, Inc. (NYSE: BLND), a prominent digital banking solution provider with a market capitalization of $930 million and annual revenue of $157 million, has announced a partnership with Truework, a leader in income and employment verification, to integrate verification services into its banking and lending products. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 3.24, indicating robust short-term financial stability.

The alliance aims to expedite the approval process for lenders by offering a comprehensive and fully integrated verification solution, which is especially relevant as lenders seek to navigate current market uncertainties with more efficient origination solutions. This integration is expected to enhance the lending process, reduce costs, and improve efficiency for mortgages, deposits, and consumer loans. With a healthy gross profit margin of 54.58%, Blend Labs demonstrates strong operational efficiency in its core business.

Blend’s platform is designed to improve lender efficiency and the borrower experience through automation and data connectivity, serving numerous financial institutions. Truework’s verification services will be embedded within Blend’s platform, allowing for the automatic retrieval of income and employment data, which is anticipated to streamline the application process and provide complete income reports.

Truework is noted for its consolidated verification methods into a single platform, achieving an industry-leading 75% completion rate for verifications. This partnership eliminates the need for multiple vendors, which can lead to increased costs and incomplete verifications.

The collaboration also enables Blend customers to maintain the capability to submit income and employment reports to Freddie Mac (OTC:FMCC)’s Loan Product Advisor® (LPA®) and Fannie Mae (OTC:FNMA)’s Desktop Underwriter (DU) for eligibility assessment for representation and warranty relief.

Ryan Sandler, CEO and co-founder of Truework, expressed enthusiasm for the partnership, highlighting the shared vision with Blend to simplify the mortgage process. Nima Ghamsari, co-founder and head of Blend, emphasized the partnership’s role in delivering seamless verifications and aiding lenders in providing faster and more reliable approvals.

This partnership represents Blend’s ongoing commitment to building a superior lending experience by partnering with leading technology providers to streamline every aspect of the lending process.

The information is based on a press release statement.

In other recent news, Blend Labs has introduced Rapid Home Lending, a new software suite aimed at improving lender efficiency and borrower satisfaction in the housing market. The platform is designed to streamline the loan origination process, offering tools for refinance and home equity lending that automate workflows and present pre-qualified offers to borrowers. Early results from users indicate significant improvements, including up to 1.5 times higher pull-through rates and over 50% faster closing times. Additionally, JMP Securities has initiated coverage on Blend Labs with a Market Outperform rating and a price target of $7.00. The firm notes that Blend Labs is well-positioned to benefit from potential interest rate cuts and a favorable economic environment, which could boost demand for mortgage products. The company’s advanced mortgage software and strategic focus on large financial institutions are seen as key strengths. Blend Labs reported a total Remaining Performance Obligations of $107.4 million in the third quarter of 2024, an 82% increase from the previous year. The company expects to recognize about half of this as revenue within the next twelve months, with revenue growth projected to accelerate in 2025.

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