Home equity lending should be simple. Yet many credit unions are unintentionally overcomplicating it, slowing down approvals, frustrating borrowers, and leaving opportunity on the table. 

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At a recent Coviance webinar, industry experts came together to answer one critical question: Why are so many credit unions overcomplicating home equity lending, and how can they fix it?

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Don Arkell of CU Lending Advice, Allen Jingst of Coviance, and Grant Abbott of Champions First Credit Union shared how rethinking process, experience, and technology can turn HELOCs into a true growth engine.

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Fix the Process First

Too many credit unions still treat a HELOC like a mini first mortgage. Average turn times stretch up to 55 days, an unacceptable delay when borrowers can get auto loans in hours or HELOC approvals from fintechs in just a few days.

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“We’re selling an answer, not fulfillment,” Don emphasized. Members want to know quickly whether they’re approved, not endure weeks of documentation requests. 

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His guidance was clear: route simple files through simple decision paths, align documentation requirements with actual risk, and most importantly, build workflows around the 90% of standard loans rather than letting the 10% of exceptions dictate the process.

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Compete on Experience, Not Price

While many credit unions focus on competing with lower rates, today’s members value speed and simplicity more. D2C fintechs charge thousands in fees and still earn rave reviews, simply because they deliver fast, easy answers.

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“Members want fast service, not free loans,” Allen explained. His advice centered on eliminating unnecessary friction from the application process, automating repeatable tasks, and focusing on the borrower experience. A modern borrower journey should look like this: an online application that generates an instant offer, followed by automated tasks, leading quickly to a streamlined close & funding.

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Simplify with Technology

Grant brought the story of Champions First Credit Union, where the HELOC process could take up to 28 days. His staff dreaded HELOCs, viewing them as too complicated, too slow, and too difficult to train on.

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After rethinking the process and adopting Coviance, Champions First tripled monthly HELOC volume while cutting funding times in half, averaging just nine business days with some loans closing in as little as two days. Staff engagement also improved dramatically, with team members now seeing HELOCs as an “easy win” loan product. 

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As Grant put it: “It’s literally the same product we were offering three years ago — but now it’s faster, simpler, and more impactful for members.”

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Turning Insight into Action

The message from all three leaders was clear: home equity lending doesn’t need to be complicated. When credit unions stop treating HELOCs like first mortgages, align processes with actual risk, and prioritize borrower experience, they can lean into today’s economic opportunity to unlock growth without overwhelming staff.

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For credit unions looking to benchmark their performance and identify opportunities, request a Home Equity Health Check from Coviance – a simple, structured way to evaluate processes, uncover inefficiencies, and design a roadmap to deliver faster, more impactful results.