Startup ‘Figure’ Brings Online Home Equity-Tapping Alternative to Market

Adding to the growing list of products to help homeowners tap equity, new startup Figure Technologies is adding a HELOC alternative to the table.

Announced this week, Figure’s Home Equity Loan gives borrowers an alternative to a tradition Home Equity Line of Credit for borrowers looking for between $15,000 and $100,000.

The brainchild of former SoFi CEO and tech veteran Mike Cagney — who resigned last year amid workplace legal troubles — San Fransisco-based Figure takes the home equity loan experience and makes it easier and more digital, according to the company.

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Earlier this year, Cagney raised $50 million in investment for Figure, which uses blockchain — a digital ledger that records transactions made in cryptocurrency like Bitcoin — to expedite the loan process.

Figure touts the speed and ease of obtaining its fixed-rate, lump sum loan, and can offer same-day approval and funding within five days, according to the company. Interested borrowers can prequalify, choose rate and loan terms, verify identity — by taking or uploading a photo of an approved ID — talk to a Figure eNotary and e-sign all within minutes online.

“At Figure, we’re transforming home equity by creating a faster, simpler and more transparent way to meet your financial goals. Learn how to use the equity in your home to consolidate debt, pay for home improvement, or fund your goals. The process is easy, secure, and faster than ever before,” according to its website.

According to their numbers, Figure’s loan has no ongoing fees after its “low” origination fee, and features fixed monthly payments and an average APR starting at 5.99%, with available loan terms of 5, 7, and 15 years.

While it is a full draw loan, possible future draws may be possible, according to the website.

The company also plans to roll out a sell and leaseback program in the future. A spokesperson for Figure told RMD that more specific details about the product will be released in the coming weeks.

Figure is the latest in a long line of equity-tapping solutions that have recently entered the market.

Written by Maggie Callahan

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  • It would be sad if RMD focused on all things mortgage rather than being focused solely on reverse mortgages and HECMs. This website has been an excellent source for news on reverse mortgages and HECMs.

    This article although addressing home equity is a deviation from the type of articles that RMD has been known for. Please “stay the course.”

    • Personally, I appreciate RMD reviewing alternatives to Reverse. I like knowing other methods of “addressing home equity”, so I can assist Homeowners as they exercise their due diligence, looking for the solution that fits their situation best. Please “stay the course” RMD.

      • Raymond,

        There is nothing wrong with an expanded view that includes all homeowners but there are many websites that look at other demographic groups and new products for all potential borrowers but how many other websites are dedicated solely to reverse mortgages? I would hate to see the current focus of RMD dissipate in any way, shape, or form.

      • Yes, it serves the purpose of showing “what else is out there” as an alternative to the HECM.

        And (in the comments section) the opportunity for pointing-out where these payments-alternatives are inferior for the typical, retiring senior.

        Meaning: “What else is out there” are products that add to existing debt-payments. Pretty much the opposite of where typical HECM candidates’ interests lie.

  • I agree with both George and Raymond. True, home equity loans compete with us, however, it is good to know what is out there in the market place.

    Take this home equity loan “Hybrid” for an example and their future sale lease back program. I see a lot of problems occurring down the road with this philosophy! To easy, to quick, trouble a brewing as I see it. Could we see foreclosures in the future happening? Is the qualifying procedure to quick, easy and not thoroughly underwritten? Again, time will tell!!

    John A. Smaldone
    http://www.hanover-financial.com

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