JPMorgan Chase picks Black Knight to power its home equity originations

Will use LoanSphere Empower to originate home equity loans

JPMorgan Chase may be using Roostify to power its digital mortgage application process on the front-end, but the megabank will be using Black Knight to power its home equity loan originations.

Black Knight announced Wednesday that JPMorgan Chase will be using its LoanSphere Empower loan origination system as the backbone of the bank’s home equity originations business.

“Customers rely on Chase digital offerings throughout their daily lives,” Sean Grzebin, head of consumer originations for Chase Home Lending, said about the agreement. “This strategic partnership with Black Knight will enable us to deliver a seamless, digital experience for customers who want to access the equity in their homes.”

According to Black Knight, Chase already uses a “wide range” of Black Knight offerings throughout the loan lifecycle, but will now be using LoanSphere Empower for its home equity originations.

Going forward, Chase will use Empower’s robotics capabilities to help automate certain processing tasks based on the bank’s origination requirements, Black Knight said.

Additionally, Chase will utilize Empower’s integrations with third-party service providers to “enhance efficiencies and reduce cycle times throughout the loan production process,” Black Knight added.

“Black Knight is proud to build on our strong relationship with JPMorgan Chase by expanding the value we deliver in origination capabilities and providing solutions and service across the entire loan life cycle,” said Rich Gagliano, president, Black Knight Origination Technologies division.

“Black Knight helps lenders drive down operational costs, reduce risk and improve loan quality,” Gagliano added. “Through our advanced solutions, JPMorgan Chase and its customers will enjoy these benefits, as well as a more dynamic and accessible loan origination experience.”

This the second huge deal for Black Knight in the last few months.

Back in November, Ocwen Financial announced that it was moving away from its proprietary REALServicing platform, which was at the center of the company’s recent regulatory troubles with more than 30 states and the Consumer Financial Protection Bureau, and moving to Black Knight’s LoanSphere MSP servicing system.

Under the terms of that deal, Ocwen Loan Servicing, the servicing subsidiary of Ocwen Financial, will use MSP to service residential mortgages and home equity loans and lines of credit.

Terms of the Chase deal were not provided.

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