Why does it still take over 40 days on average to close a home loan, if so much of our data is now online?
A crucial piece to this puzzle lies in the way home insurance is verified. Lenders require borrowers to provide proof of home insurance coverage before they will agree to finance a new home purchase, refinance, or provide a home equity loan or HELOC.
Waiting for borrowers to find and submit their insurance documents leads to costly delays to close the loan.
Borrowers have to leave the application to go find their documents. They don’t know where to find their insurance documents, and often upload the wrong information. The friction and confusion delays loan closing and frustrates borrowers.
Once the loan closes, the problem does not go away. Borrowers must continue to upload updated copies of their declarations pages so the servicer can verify continuous coverage that meets requirements.
Sometimes, the solution is really as simple as finding the “easy” button. Enter Canopy Connect, the “easy” button for insurance verification & monitoring.
Solution
Top lenders and bank infrastructure providers like Blend use Canopy Connect to synchronize home insurance data, enabling them to cut days off loan close time.
They use the Canopy Connect API and SDK to get to market quickly with an insurance verification experience that matches the look and feel of their brand. Borrowers use the lender/servicer’s whitelabeled experience to securely share their insurance data in 20 seconds.
This is how it works:
- Borrowers quickly and easily link their insurance account to the lender/servicer
- Verified insurance data is available within seconds (7.3s median connection time)
- The borrower’s insurance can be monitored thereafter to ensure continuous coverage
