Fintech Launches Innovative Credit-Improvement Partnership

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Beeline Loans has integrated with CredEvolv to help declined borrowers improve their credit scores and get approved for mortgages on its AI-powered platform, its parent company, Beeline Holdings Inc. (BLNE:NASDAQ), announced in a release.

CredEvolv was founded by veterans of the mortgage industry and assists borrowers with lower credit scores to achieve mortgage-ready status in "six months or less," the release said.

"This partnership strengthens our ability to help more borrowers achieve homeownership," said Beeline Financial Holdings Inc. Chief Executive Officer Nick Liuzza.

"Beeline shares our belief that everyone should have the opportunity to qualify for a mortgage," said co-founder and President of CredEvolv Steve Romano. "We're thrilled to partner with this exceptional lender that is truly focused on giving back by helping more people achieve financial stability, unlock better rates, and ultimately become and remain homeowners."

With its proprietary technology and AI, combined with its "loan guide" assistance, Beeline provides homeowners and property investors a shorter, faster and easier home loan application process. Applicants can do all the steps online directly on their mobile devices and get "approvals more reliably than traditional pre-approvals, sometimes in as little as 15 minutes, and a rate lock in one session."

Beeline offers a variety of options, including refinancing, to consumers through its digital platform. It has built its premise on making homeownership more accessible to a wider, more diverse market, making it an attractive prospect if mortgage rates continue to fall.

Helping Borrowers Reach Mortgage Readiness

CredEvolv said it has helped thousands of credit-challenged consumers achieve mortgage readiness.

"We connect low credit consumers with our network of nonprofit and HUD-certified credit counselors who can help them improve their credit score and become loan ready in 3 to 5 months or less," the company said on its website.

Once borrowers reach their target credit score, they can return to Beeline, where most of their financial information is already on file, streamlining the approval process, the release said.

According to Technical Analyst Clive Maund on February 27, Beeline "should have a bright future" since there will still be mortgage transactions, "even in a bleak economic environment or in a housing downturn."

"By integrating CredEvolv's services, Beeline improves conversion rates and enhances customer satisfaction, reinforcing its position as an innovator in mortgage lending," Beeline said.

In February, Beeline announced it was joining forces with another company, RedAwning, to "simplify and accelerate the real estate investment process for buyers."

Beeline Loans said investment properties account for many of the company's transactions, and the business combination with RedAwning supports its ability to tailor-make products for property investors.

RedAwning, a full-service property management company, offers a suite of services to property owners and investors, simplifying the process of renting out a short-term rental. With a focus on data-driven insights and user-friendly tools, the company said it simplifies the process for real estate owners and investors.

Fintech Should Have 'Bright Future,' Analyst Says

According to Technical Analyst Clive Maund on February 27, Beeline "should have a bright future" since there will still be mortgage transactions, "even in a bleak economic environment or in a housing downturn."

The company recently "closed a US$5 million funding, with over half of the capital coming directly from the CEO of the company, which is a vote of confidence if ever there was one," Maund wrote on February 27. "This is why a big bullish candle appeared on the stock chart on massive volume on the 19th. This news followed the news out a week earlier" of Beeline's partnership with RedAwning.

A run of "bullish long-tailed candles" and two "dragonfly dojis" on Beeline's recent chart show the lows of a small double bottom, Maund said.

"The second of these was a really big one on huge volume, which appeared following the news of the completion of the funding, and it clearly has bullish implications," Maund said. "The price has consolidated over the past couple of trading days and is expected to advance from here."

Maund said Beeline Holdings was at a very good entry point "since it doesn't look like it will be long before it breaks out of the top of this base into a new bull market."

The Catalyst: Mortgage Rates Dropping

Opening up the market could be the fact that mortgage rates have dropped to their lowest point since December, according to a report by Diana Olick for CNBC on February 27.

Demand, however, still hasn't caught up. Total mortgage application volume fell 1.2% from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index, Olick reported.

The global fintech lending industry is forecasted to expand at a compound annual growth rate (CAGR) of 27.4% by 2030, according to Allied Analytics. Accordingly, it is projected to generate US$4.957 trillion by 2030, up from US$449.89 billion in 2020. In the first year of the forecast period, the online segment accounted for nearly four-fifths, the highest share, of this market, and it is expected to maintain its lead position through 2030.

"This is due to [a] hassle-free lending process, customization of small-ticket loans, and mitigation of risks associated with unsecured lending," the report noted.

The standard global online mortgage lending market is expected to grow at a 10% CAGR between 2023 and 2030, hitting about US$25 billion at the end of this decade, reported Fairfield, a market research company.

"The growth of the mortgage lending sector is anticipated to be fueled by rising technological advancements in underwriting automation and the application of machine learning in lending markets," the report said.

According to Research and Markets, the Credit Repair Services Market grew from US$4.26 billion in 2023 to US$4.84 billion in 2024. It is expected to continue growing at a CAGR of 13.87%, reaching US$10.57 billion by 2030.

The market for credit repair services is influenced by factors like increasing consumer awareness about credit health, rising levels of personal debt, and the impact of economic downturns leading to degraded credit profiles, researchers said.