FirstClose reveals new feature to help consumers consolidate debt faster

Mortgage data and workflow solutions provider FirstClose is launching a new feature for its automated home equity point-of-sale system. The Austin-based company has added the Digital Loan Product Wizard to the system, according to a recent announcement. 

The new feature will help customers to quickly consolidate high-interest mortgage debt. Borrowers can determine down payment amounts, monthly payment limits, and interest rates for home equity lines of credit (HELOCs) or home equity loans with a five- to 10-day closing process. Early trials of the feature yielded a 10% increase in applicant conversion rates.

“Credit card, auto and student loan debt are currently at all-time highs, and so it is not surprising that debt consolidation is the fastest-growing category in home equity lending,” FirstClose chief product officer Ramiro Castro said in a statement. He referred to a recent report from the Mortgage Bankers Association, which showed that debt consolidation accounted for 33% of the use cases for home equity loans funded in 2023. 

“Our new debt consolidation feature lets consumers get a real sense of what they could save by paying off higher interest debt and do it on a self-serve, no pressure basis,” Castro added.

Customers must enter basic information — including their name, date of birth, address and loan purpose — to access the feature and map out the details of a new loan. Eligible debts include construction loans, personal loans, credit cards, auto loans and student loans. The Digital Loan Product Wizard performs a soft credit pull to present available levels of home equity. 

The company partners with the three major credit bureaus — Experian, Equifax and TransUnion — to pull accurate credit reports via the FirstClose platform. Consumers can choose specific credit lines to pay off, input a down payment amount and select a preferred monthly payment. 

From there, the Digital Loan Product Wizard lets borrowers select several HELOC and home equity products to evaluate through several third-party institutions—including Evolve Mortgage Services and American First Credit Union. The tool then sends consumer information to a lender to start the underwriting process

FirstClose emphasizes that the technology is not designed to replace traditional loan officers but to facilitate a smoother, more informed borrowing experience. The announcement also reflects a recent effort from FirstClose to expand its reduced turn times in home equity lending. In July, the company partnered with Neighborhood Credit Union to streamline the lender’s home equity operations.