Bloomberg: Home Equity Tapping Company Figure to Hit $1 Billion Valuation

Figure Technologies, providers of alternative home equity tapping tools including a sale leaseback offering that is competitive with traditional reverse mortgages, is poised to become a “unicorn” after its latest round of financing; a term used to describe a startup that is valued at $1 billion or more.

Co-founder and CEO of Figure Technologies Mike Cagney is raising over $100 million for the company, bringing it to a $1 billion valuation less than two years after its founding, according to a report from Bloomberg.

The funding round has yet to close, which could affect the final valuation and amount. However, the company is slated to make $80 million in loans this month alone, according to sources familiar with the situation who spoke to Bloomberg on condition of anonymity. Figure itself has declined to comment.

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In the past, and unlike other entities offering alternative equity release products, some of Figure’s marketing materials have aimed to position themselves as a direct competitor to reverse mortgage products. The company announced a new sale leaseback offering in November 2018, Figure Home Advantage, which was described on Figure’s website as “better than a reverse mortgage.”

“Reverse mortgages don’t have a good reputation, and can’t help a lot of people because of the age demographic, or just the math if it works out,” said Wendy Harrington, CMO of Figure in a January interview with RMD. “So, I think people are excited to hear that there’s another option out there, and I would also say that this is a situation that’s going to evolve over time.”

Figure also hired a new head of wealth and asset management in March which acted to expand the company’s positioning as a vendor of tools that can help seniors in funding their retirement.

Increasing prevalence of alternative equity tapping products can be a positive development for the reverse mortgage industry according to some. Some companies that offer such products have even created partnerships with reverse mortgage lenders. One such company, New York-based EasyKnock, revealed to RMD that it engages in partnerships with reverse mortgage companies to offer its own products to people who may not qualify for a reverse mortgage.

Read the original story related to Figure’s latest funding round at Bloomberg.

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