After a decade of home price growth, many homeowners today are sitting on a mountain of equity. Tappable equity hit a record high in Q2 of this year, when 48 million mortgage holders reportedly had an average of $213,000 in accessible value.
That growing equity has translated into a renewed interest in home equity (HE) products over the years. Homeowners are still largely leveraging these products to fund home renovations, but debt consolidation is a growing factor – surging from 25% in 2022 to 39% in 2024, according to the MBA’s Home Equity Lending Study.
However, it’s not enough to just know why homeowners are tapping into their equity. Lenders must also position themselves to offer competitive products that meet the needs of their borrowers. Differentiating HE lending products is possible, and it starts with delivering faster turn times and a stronger consumer experience.
Time for a change
In a foot race and in the lending industry, speed wins. There are certainly opportunities for lenders to edge out the competition when it comes to closing timelines on home equity products. According to the same MBA study, it took an average of 38 days to close on a HELOC in 2024 (7 days longer than the previous year). Processing times for home equity loans took an average of 37 days. While that may be the average, it doesn’t have to be the norm. New automated technology has the potential to reduce HE timelines, down to as few as 8 days or less, which is more in line with consumers’ expectations when it comes to speed.
Achieving faster turn times
For lenders truly looking to move the needle, faster HE transactions start with partnering with experienced providers that offer a range of solutions. Let’s take a look at some key stages and how each one can benefit from a tech-forward approach.
The delivery of title decisions used to take days, but now they’re down to minutes. The infusion of automation into the underwriting process has led to the emergence of instant title solutions. Generally speaking, cloud-based automation engines search historic property data, then deliver a snapshot of the title status along with visibility into any potential risks. This helps lenders instantly determine how quickly they can close the loan, followed by the opportunity to set expectations with the borrower up front. This technological advancement provides not just speed, but smarter, more accurate underwriting – which is a win for all involved. While many providers claim to offer instant title, not all products are the same especially when it comes to the quality of data sources and scope of coverage. Consider partnering with those that have stability and longevity in the title space, as well as clearly defined data protection measures.
Another speed differentiator is consumer-facing scheduling apps. They give borrowers the opportunity to click a button and schedule their own closing appointment for the exact date and time that they desire, cutting out the phone tag that often can stall a transaction. ServiceLink’s proprietary scheduling solution, for example, provides real-time calendars of qualified notaries, so that borrowers (or their lenders) can select the first available time slot, thus keeping the transaction moving forward. In addition to requiring little-to-no tech lift for the lender, this solution has been proven to reduce closing timelines by days.
Time savings can also be achieved through providing borrowers with eClosing solutions that fit their comfort level. While some may opt for traditional in-person, wet-ink signings, others are eager to use virtual solutions that allow for more flexibility. Therefore, lenders that offer multiple options like: remote online notarization (RON), in-person electronic notarization (IPEN) and hybrid signings can not only provide borrowers with personalized choices, but also streamline their processes. eClosing solutions can be up to 15 to 20 minutes quicker – freeing up notaries to certify more documents in less time – and they cost less to produce, which saves the lender money.
For lenders looking to create even more efficiencies, consider modernizing the signing experience under a single provider, one that can manage RON and other hybrid solutions. Working with a single signing partner also eliminates the need for lenders to manage multiple relationships and enables them to scale their signing solution much more easily.
A better borrower experience
Today’s borrowers are eager to utilize new technologies because they recognize the benefits. In the 2025 ServiceLink State of Homebuying Report, 59% of borrowers said they appreciate mortgage technology because of its convenience and ease of use, while another 51% touted the time savings that technology provides.
A tech-enabled approach to the mortgage process means that lenders can deliver transparency by clearly communicating to their borrowers exactly what they can expect from the application through the signing. Additionally, offering consumer-facing tech options is another way to meet their needs. Providing that consistent, customer-centric experience ultimately boosts satisfaction and creates brand loyalty.
Meeting the borrower’s expectations for speed, accuracy and convenience is utterly important and can prove to be a real differentiator in a crowded market. The time is now to invest in technologies that support those pillars in order to bring your organization to a new level of efficiency and borrower satisfaction.