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Progress Report: A Decade of Online Home Equity Lending and the Next Five Years

Published by: TowerGroup

Published: Nov. 19, 2007 - 6 Pages


Table of Contents


Report Coverage

Overview of Online Decisions in Consumer Lending

Exhibit 1 Sample US Home Equity Application Approval and Booked Rates by Channel (2007)

Strategies for Home Equity Online Lending

Exhibit 2 E-Disclosure and E-Closing Process for US Online Home Equity Applications (2007)

Summary

Abstract

Online lending is now a mainstay for consumer lenders, but the process hasn't been easy for many institutions. This TowerGroup ViewPoint discusses the state of online home equity lending and describes some successes and pitfalls that lenders need to address to bring online lending in line with other channels. Early Internet offerings supported electronic origination at only the most superficial level. Full electronic document and e-closing capabilities are now emerging to expedite onboarding of new accounts. Lenders need to break away from old practices that prohibit advancement in the electronic world. The time of turmoil in the credit markets may prove to best time to move forward.

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