Blend, a startup that sells its loan application technology to banks, is allowing consumers to close mortgages online. The feature, called “Blend Close,” is currently in a pilot stage and integrates into Blend’s existing application technology. 

“This [feature] can walk the customer through the closing with minimal effort from the lender,” said Nima Ghamsari, founder and CEO of Blend. “If [customers] want to close entirely in their pajamas while on their mobile phone, they can.” 

With Blend Close, the company aims to eliminate the need for mortgage customers to sign closing documents in person, allowing them to connect with a notary through video and digitally signing closing documents.  

Mortgage customers will also receive a digital copy of their closing documents to review or print. On the closing date, customers can video chat with a notary, who will go through the documents with them.  

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Customers create a digital signature to apply through their desktop or mobile phone to sign the documents, which are then forwarded to the lender. If customers would like to meet the notary in person and sign paper documents, Blend’s technology also allows customers that option.  

Blend is currently working on a pilot with U.S. Bank and BMO Harris, and plans to have Blend Close available to bank clients for mortgage refinances and home equity loans sometime during the second or third quarter of this year. The company aims to have it available for mortgage purchase loans by the end of the year.  

Ghamsari said some states and title companies require a notary to attend the close in person, so mortgage customers can’t use the video chat function. 

Blend was founded in 2012 and has raised $310 million. According to the company, it partners with more than 225 different lenders and processes more than $2.5 billion in mortgage applications daily. In addition to U.S. Bank and BMO Harris, its clients include Navy Federal and Wells Fargo.