ISGN Corporation has announced during the availability of Home Equity Advantage, a suite of products and services designed to help home equity lenders transform and scale their operations. Home Equity Advantage combines technology, title/settlement, valuation and outsourced fulfillment in a cost-effective solution set targeted at the unique dynamics of the Home Equity process. Home Equity lenders who are just starting out or looking to build their existing business can choose one or all of the solutions in this set to enhance the borrower experience and mitigate risk.
The product set includes LienSure, designed to provide a framework for lenders to evaluate and mitigate specific risk factors when underwriting home equity lines of credit and close-end home equity loans. Home equity lenders can leverage LienSure as an alternative to uninsured products such as a deed report or property report without an insurance wrapper, thereby mitigating the risks covered by the policy. This product provides additional risk coverage at a cost-effective price points.
“Home equity lending has historically been a viable product on a standalone basis and a counter-cyclical product to the first mortgage refinance market," said Paul Imura, CMO of ISGN. "During the mortgage crisis, home equity lending retreated as home values declined and equity evaporated, leaving many in a negative equity position.”
In addition to traditional appraisal products, ISGN offers a proprietary Desktop Evaluation, a reliable and accurate valuation solution completed by licensed, local appraisers. Leveraging the strength of industry-leading analytics combined with the local experience and expertise of a licensed appraiser, ISGN’s product meets state and federal regulations and is both USPA and IAG compliant. It can also be combined with a Property Condition Report to assess the subject’s current condition and the surrounding market.
“Over the last five quarters, however, more than 3.2 million borrowers have reached positive equity,” Imura said. “Because of this, coupled with a declining refinance market, ISGN predicts that the market will see an increase in home equity lending in 2014. With $5 trillion in untapped home equity as of the second quarter, lenders must prepare to meet this increased demand.”