Figure Technologies, which Enhances Financial Services by Leveraging Blockchain Tech, Closes HELOC Securitization

Figure Technologies Inc., a firm focused on transforming financial services through the power of blockchain technology, announced “the close of a HELOC (home equity line of credit) securitization underwritten by Jefferies, Goldman Sachs, and J.P. Morgan.”

The FIGRE 2023-HE1 asset-backed securities (ABS) offering “was comprised of Class A and B notes, rated AAA and A(low) by DBRS Morningstar, respectively.” This is Figure’s first publicly rated HELOC ABS transaction “since the company’s inception.”

Mike Cagney, CEO and Co-founder of Figure, said:

“Launching this rated transaction is an inflection point in capital markets, ultimately supporting more liquidity to U.S. homeowners. The partnership with our underwriters underscores a continued level of institutional interest in Figure and provides the foundation for what we believe will be a rapid rise in blockchain adoption within traditional finance.”

This milestone transaction “enables Figure to source additional liquidity in capital markets, enabling even more homeowners a flexible and affordable way to access their home equity.”

Powered by blockchain technology, Figure’s HELOC digital application “provides customers with a decision in as few as 5 minutes and funding in as little as 5 days.”

HELOCS are “increasingly being used as an affordable alternative to personal loans or credit cards for large purchases, tuition payments, and debt consolidation.”

According to a recent Housing Finance Policy Center report, “with the economics of cash-out refinance worsening amidst higher rates, homeowners are showing increased willingness to use HELOC and home equity loans to tap equity.”

On the capital markets side, Figure’s HELOC product “provides a unique risk-adjusted offering with the credit protection of a secured mortgage product and attractive yields, establishing it as an asset class that bridges the residential and consumer finance industries.”

As one of the first lenders to develop blockchain technology, Figure is “focused on driving adoption across the lending ecosystem and providing stakeholders the benefit of an immutable record of ownership on the Provenance Blockchain for every loan.”

The integration of technology and automation in Figure’s HELOC product “has increased efficiency, speeding up the funding process from weeks to just days.”

The deal is “the latest in a series of milestones and rapid growth from Figure’s blockchain-powered lending business.”

At the end of 2022, Figure has “reached HELOC originations of over $5 billion, supporting over 70,000 households across the U.S., and has established itself as the largest non-bank HELOC lender.”

Additionally, this announcement “comes on the heels of Figure securing $300 million across multiple credit facilities, enabling further access to capital and growth.”

As covered, Figure claims it is “transforming financial services through blockchain, bringing speed, efficiency, and savings to consumers and institutions.”

Figure continues “to unveil a series of blockchain firsts across the capital markets, investment management, and banking and payments sectors.”

Figure reportedly “leverages the Provenance Blockchain for loan origination, servicing, financing, as well as private company stock management, fund registry, blockchain marketplaces and payments.”

The company was “founded in 2018 by serial technology entrepreneur Mike Cagney, who also founded SoFi and built that company into a multi-billion-dollar business under his leadership as CEO.”

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