Opinion: Navigating The HELOC And HELOAN Landscape In The Post-COVID Mortgage Market

By PARESH DESHPANDE The mortgage industry in the United States has always been known for its cyclical nature, characterized by fluctuating interest rates and varying economic conditions. Since the onset of the COVID-19 pandemic, the landscape has experienced significant shifts, with interest rates soaring to levels not seen in years. This environment has led to the increased popularity of Home Equity Lines of Credit (HELOCs) and Home Equity Loans (HELOANs) as viable financial options for many American homeowners. These instruments allow homeowners to tap into the equity they have built in their homes, but there are nuances and implications that both borrowers and lenders must navigate. The Rise of HELOCs and HELOANs As traditional mortgage rates have risen post-COVID, many…

Black Knight Launces AI Valuation App For HELOC Lending

Black Knight introduced a new app to speed up applications for home equity lines of credit, the company announced. The app, Validate, allows borrowers to include photos of their property as part of their application. The photos are then analyzed with AI to calculate the home’s condition in real-time, speeding up the approval process. Borrowers complete a questionnaire to verify public record data and list any necessary repairs after submitting photos, Black Knight said. Photos are time-stamped and GPS verified to ensure current property condition and location are accurate. The address is then scored based on comparable properties to create a condition-adjusted valuation model. Lenders receive the property value and available equity immediately via API or PDF, saving time and…