Figure Technologies Inc. has closed a home equity line of credit securitization underwritten by Jefferies, Goldman Sachs and J.P. Morgan. The FIGRE 2023-HE1 asset-backed securities offering comprised Class A and B notes, rated AAA and A(low) by DBRS Morningstar, respectively.
This is Figure’s first publicly rated HELOC ABS transaction.
Powered by blockchain technology, Figure’s HELOC digital application provides customers with a decision in as few as five minutes and funding in as little as five days, the company says. 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, the company adds.
“Launching this rated transaction is an inflection point in capital markets, ultimately supporting more liquidity to U.S. homeowners,” says Mike Cagney, CEO and co-founder of Figure. “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.”
“There continues to be demand for innovative lending solutions,” adds Michael Wade, head of U.S. ABS capital markets of Jefferies. “We’re pleased to support this offering as an underwriter for our client.”
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 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 company says.
At the end of 2022, Figure reached HELOC originations of over $5 billion, supporting over 70,000 households across the U.S., and established itself as the largest non-bank HELOC lender.
