New
York
City-based
fintech
startup


Hitch
announced
the
launch
of
its
Hitch
Home
Equity
White
Label
program
in
partnership
with

United
Mortgage
Corp. 

This
iteration
signals
Hitch’s
smooth
transition
from
the
direct-to-consumer
market
to
a
collaborative
effort
with
independent
mortgage
lenders.
United
Mortgage
Corp.,
a
midsized
lender
based
in
the
state
of
New
York,
originated
more
than
$2
billion
in
purchase
and
refinance
loans
last
year.

The
new
white-label
platform
includes
a
loan
origination
system,
a
point-of-sale
interface
and
direct
access
to
capital
markets.
It
empowers
lenders
to
originate

home
equity
lines
of
credit
(HELOCs)
under
their
brand
without
redirecting
borrowers
to
external
platforms.

It
will
also
help
borrowers
gain
access
to
additional
lines
of
credit
faster.
​​Most
HELOC
programs
offered
by
big
banks
took
an
average
of
41
days
from
application
to
close
in
2022,
according
to
a

study
by
the


Mortgage
Bankers
Association.
Meanwhile,
Hitch
can
process
applications
in
a
few
minutes
and
deliver
the
funds
within
seven
days,
according
to
William
Schoeffler,
president
and
co-founder
of
Hitch.

“There
is
no
question
that
the
depository
banks
can’t
keep
up
with
the
independent
mortgage
bankers,“
David
Wind,
CEO
and
co-founder
of
Hitch,
told
HousingWire.
“And
the
independent
mortgage
bankers
can’t
keep
up
with
the
companies
that
exclusively
do
HELOCs.
Through
this
partnership,
we
are
allowing
independent
mortgage
bankers
to
become
competitive
with
firms
that
are
just
doing
HELOCs.
In
that
way,
they
have
every
advantage.”

HELOCs
offer
homeowners
a
revolving
line
of
credit
obtained
by
leveraging
the

equity
in
their
homes.
They
allow
borrowers
to
manage
cash
flow
for
various
purposes
such
as
home
renovations,
debt
consolidation
or
other
major
expenses.
Loan
amounts
can
vary
from
$25,000
to
$500,000,
with
a
prerequisite
FICO
score
of
660
for
many
borrowers.

“That
automation
allows
a
loan
officer
to
submit
home
equity
lines
applications
through
Hitch
directly,
and
be
mostly
hands
off
after
that
point,”
said
Jason
Morano,
vice
president
of
sales
at
United
Mortgage
Corp.

“This
allows

loan
officers
to
do
two
things:
first,
do
more
home
equity
lines,
and
second,
retain
the
customers
and
their
future
business.
If
your
client
wants
a
HELOC
and
you
can’t
offer
it
to
them,
the
first
thing
they
are
going
to
do
is
go
to
another
bank,
and
we
don’t
want
that.”

Loan
officers
will
have
access
to
a
dedicated
portal
through
which
they
will
be
able
to
engage
with
their
clients.
Borrowers
will
be
able
to
complete
their
applications
and
receive
decisions
within
a
matter
of
minutes. 

Hitch
addresses
a
critical
gap
for
small
to
midsized
lenders,
as
they
have
traditionally
been
constrained
by
rigid
systems
that
make
it
challenging
to
profitably
offer
smaller
loans.
Looking
ahead,
Hitch
aims
to
expand
its
product
portfolio
for
lenders,
including
offerings
such
as
home
equity
investment
solutions
and
a
“buy
before
you
sell”
product.

Hitch
was
founded
in
2022
and
has
raised
$2
million
in
funding
since
its
inception.

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