SAN FRANCISCO, Oct. 9, 2018 /PRNewswire/ -- Figure Technologies, Inc. (FigureTM), a FinTech company creating innovative products and tools that empower homeowners to improve their finances, announced today its first product, the Figure Home Equity LoanPLUS. Figure's flagship product allows consumers to borrow against the equity in their home without the paperwork-intensive, 45-day process most lenders require. Figure offers approval in five minutes, funding in five days — all online.
According to a recent Home Equity Report by CoreLogic, homeowners with mortgages have seen their equity increase year-over-year, representing a $1 trillion gain since 2017. That, combined with rising interest rates, helped fuel a 14 percent increase in home equity line of credit (HELOC) originations in the first quarter of 2018 when compared to last year, according to Attom Data Solutions.
Many homeowners are choosing to invest in their homes through home improvement and remodeling projects — the most popular reasons for seeking a home equity product. Notably, a recent study by Houzz found 51 percent of approximately 130,000 homeowners surveyed plan to begin or continue renovating their homes in 2018.
Until now, tapping into home equity has been complicated, frustrating, and expensive. Figure is changing that with a fresh approach, including tools and information to educate and empower consumers to make good financial decisions.
"We're transforming the entire customer experience by creating a faster, simpler, and more convenient way for homeowners to access the equity in their homes," said Wendy Harrington, chief marketing officer at Figure. "The status quo was far from ideal, so we reimagined it and applied technology to the problem. The result: approval in five minutes, funding in five days, all online."
Key Benefits of the Figure Home Equity LoanPLUS
Fast and convenient: At Figure, you're approved for a home equity loan in five minutes. Just fill out a short online form, select the desired loan amount and term, and digitally sign. Figure's eNotary helps finalize the details. It's simple, fast, and convenient.
Lower rates and better options: Homeowners typically qualify for a lower interest rate and monthly payment with home equity loans compared to personal loans. At Figure, you can borrow $15,000 to $100,000. Annual percentage rates start as low as 5.99 percent** with loan terms of 5, 7, 10, and 15 years.
Easy access to funds: Figure disburses the full loan amount as soon as the loan's final — often in as few as five days. You can make additional draws over time as you start to pay down the loan balance.
No hidden fees: In contrast to most other lenders, Figure doesn't charge appraisal fees, title fees, late fees, or pre-payment penalties. There's just one low origination fee**.
"Figure is tackling the most important and overlooked opportunity to help improve people's financial lives — the equity in their homes," noted Arthur Levitt, former chairman of the SEC and advisor to Figure. "Figure has completely revamped what's been a frustrating, time-consuming, and expensive undertaking. Consumers are bound to benefit from their continued innovation."
Technology Empowering Consumers Figure is creating innovative products designed to improve the lives of consumers using advanced technologies. Home equity required a fresh approach designed for consumers and powered by technology. The Figure Home Equity LoanPLUS highlights the benefits for consumers: speed, convenience, and savings.
Figure will soon launch its second product, a sell and leaseback alternative to reverse mortgages for retirees and empty nesters. This is a unique solution addressing a massive demographic challenge — underfunded retirement.
Importantly, Figure is harnessing the power of blockchain to reduce costs and increase access to financial products. In July 2018, the company achieved a major milestone by originating the first loan ever on blockchain. Figure has built an ecosystem of leading financial firms — asset originators, buyers, and financiers — around its blockchain solution, ProvenanceTM.
Armed with the latest technology, Figure will transform financial services as it dramatically reduces costs, improves liquidity, reduces risks, and opens new financial markets.
States Available Today, the Figure Home Equity LoanPLUS is available in 25 states, including AL, AR, AZ, CA, CO, FL, ID, IL, IN, KS, ME, MI, MN, MS, MT, NE, ND, NH, NJ, OK, OR, SD, WA, WI, WY with more states to come.
About Figure Technologies, Inc. Figure Technologies, Inc. (FigureTM) creates innovative consumer financial solutions for home improvement, debt consolidation, and retirement while providing its members financial literacy and financial empowerment. Its mission is to build and promote innovative financial products on blockchain that benefit consumers and eliminate rent-seeking, illiquidity, and other inefficiencies present in current financial markets. The company's flagship product, the Figure Home Equity LoanPLUS, utilizes the blockchain protocol Figure created, ProvenanceTM. Based in San Francisco, Figure was co-founded by Mike Cagney, former co-founder and CEO of SoFi, along with Alana Ackerson, Cynthia Chen, June Ou, and Sara Priola. For more information about Figure and its offerings, visit www.Figure.com.
In May 2018, Figure raised over $50 million in its Series-A funding led by Ribbit Capital and DCM.
To apply for a Figure Home Equity LoanPLUS or for more information on Figure, visit www.Figure.com.
EQUAL CREDIT OPPORTUNITY ACT NOTICE: The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has, in good faith, exercised any right under the Consumer Credit Protection Act. The Federal Agency that administers Figure's compliance with this law is the Federal Trade Commission, Equal Credit Opportunity, Washington, DC 20580.
*Approval in 5 minutes and funding in 5 days is based on a typical customer experience for properties located in counties that permit e-recording. Actual funding times may vary.
* *For example, for a borrower with a CLTV of 45% and a credit score of 760, a five-year Figure Home Equity Loan Plus with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 5.99% and a 3.00% origination fee. Your total loan amount would be $51,500. Origination fees range from 1-3% of your initial draw depending on loan term, CLTV, state in which your property is located, and credit score. The advertised rate could change or not be available at commitment or closing.