Figure Technologies Inc., a company advancing financial services through blockchain technology, will collaborate with four top 20 independent mortgage banks (IMBs) as private label partners in order to increase the availability of Home Equity Lines of Credit (HELOC) to additional consumers. The four new partners are CMG Financial, CrossCountry Mortgage, Fairway Independent Mortgage and The Loan.
“In an economic environment in which mortgage volume has slowed, and traditional banks are withdrawing from the mortgage space, Figure’s HELOC provides originators with a valuable new opportunity to deepen relationships, capture new clients and drive lending officer engagement,” says Jackie Frommer, head of lending at Figure.
Figure’s HELOC technology is being leveraged by each of its partners to create a branded product for its customers. An entirely digital application process will allow new customers from these private label IMBs to apply and get approved in as little as five minutes. Figure’s product is now available in 45 states and Washington, D.C., up from 41 states a year ago.
“In addition to serving new customers, we aim to empower our existing customers with the ability to utilize their home equity for needs like renovations or investment property down payments, while preserving existing low interest rates,” says Christopher George, president and CEO of CMG Financial.
A HELOC can be more cost-effective in today’s interest rate environment than refinancing a primary mortgage to access built-up equity. According to recent research, the individual amount the average U.S. homeowner could be saving on interest payments with a HELOC compared to a cash-out refinance is up to $89,000. Additionally, total home equity is currently at a record high of $27.8 trillion, with $11 trillion currently tappable.
As the largest non-bank HELOC lender, Figure recently reached HELOC originations of over $6 billion, supporting more than 85,000 households across the U.S.