Figure Technologies, founded by Mike Cagney, has recently introduced a wholesale lending platform that provides loan originators with access to the company&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPU5rUFliTFpZZVJ3QXBic0NhZGZFZUZsZ2lIbmlrUnpWVlNreHJNbmM0Y0VJeU1ERnBaemx0Y2pOQlFUMDk-8217;s home equity line of credit (HELOC) offering. This new platform enables wholesale partners of Figure to broker loans directly using the company&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPU5rUFliTFpZZVJ3QXBic0NhZGZFZUZsZ2lIbmlrUnpWVlNreHJNbmM0Y0VJeU1ERnBaemx0Y2pOQlFUMDk-8217;s HELOC technology, as stated in the company&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPU5rUFliTFpZZVJ3QXBic0NhZGZFZUZsZ2lIbmlrUnpWVlNreHJNbmM0Y0VJeU1ERnBaemx0Y2pOQlFUMDk-8217;s announcement.
The introduction of Figure&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPU5rUFliTFpZZVJ3QXBic0NhZGZFZUZsZ2lIbmlrUnpWVlNreHJNbmM0Y0VJeU1ERnBaemx0Y2pOQlFUMDk-8217;s digital wholesale model offers end-to-end support for the loan origination process. This includes the broker application, customer fulfillment, and funding. Originators can utilize Figure&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPU5rUFliTFpZZVJ3QXBic0NhZGZFZUZsZ2lIbmlrUnpWVlNreHJNbmM0Y0VJeU1ERnBaemx0Y2pOQlFUMDk-8217;s online pre-application process to pre-qualify their customers, which then seamlessly connects to a digital fulfillment system supported by Figure.
One of the primary advantages of this new platform is the speed at which approvals and access to funds are granted. Wholesale originators can apply and receive approval in as little as five minutes, with access to funds provided in as fast as five days. However, it is important to note that the approval process is subject to verification of income and employment. The funding timeline assumes closing the loan with Figure&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPU5rUFliTFpZZVJ3QXBic0NhZGZFZUZsZ2lIbmlrUnpWVlNreHJNbmM0Y0VJeU1ERnBaemx0Y2pOQlFUMDk-8217;s remote online notary, and additional time may be required for loans secured in counties that do not permit e-signatures or require an in-person closing.
This development in the lending industry is particularly significant as home equity lending has emerged as a promising segment amidst a sluggish housing market. The market has been hampered by stubborn inflation and high interest rates. However, with nearly 92% of homeowners having an interest rate below 6%, buyers who are looking to move can tap into their home equity, which has risen during the pandemic years.
Traditionally, depository banks have dominated the home equity lending space. However, nonbank lenders have recently entered the market to take advantage of high home equity levels. This includes industry players such as United Wholesale Mortgage (UWM), loanDepot, and Guaranteed Rate.
In terms of dollar volume, there has been a significant increase in HELOC originations in recent years. In 2022 alone, there was an estimated $251 billion in HELOC originations, compared to $182 billion in 2021. This reflects the growing demand for home equity lending solutions.
Figure Technologies has been at the forefront of this trend, posting HELOC originations of over $5 billion at the end of 2022 and supporting at least 70,000 households across the country. The company&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPU5rUFliTFpZZVJ3QXBic0NhZGZFZUZsZ2lIbmlrUnpWVlNreHJNbmM0Y0VJeU1ERnBaemx0Y2pOQlFUMDk-8217;s use of its proprietary platform, Provenance Blockchain, has enabled streamlined loan origination, equity management, private fund services, banking, and payments.
It is worth noting that Figure Technologies has faced its share of challenges in bringing blockchain technology to the mortgage lending industry. In 2021, the company announced its intention to merge with Homebridge Financial Services, but regulatory delays ultimately led to the cancellation of the merger in June 2022. Additionally, Figure had plans to go public through a special purpose acquisition company (SPAC) called Figure Acquisition Corp. However, due to various market factors, including interest rates and redemption rates, the SPAC was delisted from the New York Stock Exchange in December 2022.
Despite these challenges, Figure Technologies continues to innovate in the lending industry with its wholesale lending platform. By providing loan originators with access to its HELOC offering, the company aims to streamline the loan origination process and provide faster and more efficient lending solutions. This development further highlights the growing importance of digital technologies in the lending industry and the potential for nonbank lenders to disrupt traditional banking practices.
In conclusion, the introduction of Figure Technologies&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPU5rUFliTFpZZVJ3QXBic0NhZGZFZUZsZ2lIbmlrUnpWVlNreHJNbmM0Y0VJeU1ERnBaemx0Y2pOQlFUMDk-8217; wholesale lending platform marks a significant development in the lending industry. By leveraging the company&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPU5rUFliTFpZZVJ3QXBic0NhZGZFZUZsZ2lIbmlrUnpWVlNreHJNbmM0Y0VJeU1ERnBaemx0Y2pOQlFUMDk-8217;s HELOC technology, loan originators can seamlessly broker loans directly, benefitting from a faster time to market and a simplified origination process. As the housing market continues to face challenges, the availability of innovative lending solutions such as Figure&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPU5rUFliTFpZZVJ3QXBic0NhZGZFZUZsZ2lIbmlrUnpWVlNreHJNbmM0Y0VJeU1ERnBaemx0Y2pOQlFUMDk-8217;s platform offers hope for both lenders and borrowers.
