PNC Bank taps Blend to digitize its mortgage services

One of the nation's leading bank lenders is partnering with Blend Labs to enhance its digital mortgage application process. 

Pittsburgh-based PNC Bank announced Tuesday a partnership with the mortgage fintech to allow customers to digitally apply for mortgages, import bank or payroll information and work with loan officers online through the signing process. 

"Through our partnership with Blend, we're now able to deliver a state-of-the-art experience that provides an ideal combination of digital self-service technology and support for our customers as they navigate one of the biggest and most important purchases in their lifetimes," said Peter McCarthy, PNC executive vice president and head of mortgage, in a press release. 

PNC Bank is one of Blend's larger partners among its roster of over 330 depository, credit union, fintech and independent mortgage bank partners. PNC originated $4.8 billion in residential loans in the second quarter, it reported in July. Its volume was down from the $5.1 billion it originated during the first quarter, and $6.5 billion in mortgage loans at the same time last year.

The bank's parent company, PNC Financial Services Group, has been strengthening its technology offerings in recent days, also acquiring cloud-based transaction firm Linga for an undisclosed cost earlier this week. Linga supports restaurant functions including online ordering, payments, QR code-based menus and other industry offerings.

San Francisco-based Blend is reeling from a difficult year so far filled with layoffs and significant losses, including a $477.2 million net loss during the second quarter, it reported last month. Most of that loss stemmed from an accounting adjustment at its Title365 business, although fintech also posted a net loss of $72.4 million in the first quarter. 

Leaders at the fintech, in a second quarter earnings, call said they reassessed Blend's revenue guidance for the year based on more conservative Mortgage Bankers Association projections rather than Fannie Mae's, but still anticipate areas of growth. Blend's revenue guidance for Title365 is expected to rise to between $95 million to $105 million this year, executives said last month, because of increased performance by products including a new, speedier home equity platform.