Figure Technologies, Inc., a blockchain-based lending platform, says the recent Fed rate cut has been good for business. In fact, Figure is reporting a whopping 300% increase in loan applications hurdling loans funded to over $1 billion. 30 year fixed interest rates on mortgages were hovering just above 3%.
Well known Fintech entrepreneur and CEO of Figure Mike Cagney said the 300% increase in applications suggests that consumers are eager to take advantage of the “unprecedented” low mortgage rates:
“HELOCs and student loan refinancing. Consumers will benefit through lower debt costs and, for cash-out refi and HELOCs, more cash on hand,” said Cagney. “I believe this is the fastest a de novo Fintech has exceeded $1 billion in funded loans. We couldn’t have supported this type of growth and innovation – like the 5-minute HELOC – without the platform we built on Provenance. Look for even more innovative solutions tied to these lower rates in the near future.”
Provenance is the companies iteration of blockchain that facilitates online lending.
Figure says the average size of loans applied for during the surge in activity is about $50,000 per household.
Figure is the first company to combine traditional lending and blockchain A year after opening for business, Figure reported that it was already originating $85 million of loans each month.
Figure quickly earned unicorn status following a $103 million Series C funding round at a $1.2 billion valuation.
Currently, Figure offers HELOCs, mortgage refinancing and student loan refinancing with plans to continuously expand its portfolio of products.
Figure originates, finances, services and sells all of its loans through its blockchain platform Provenance.