It’s the “fastest home equity loan on the planet.”
Figure Technologies Inc., a startup founded by Mike Cagney, former CEO of online lender Social Finance (SoFi), has rolled out a new home equity loan product utilizing blockchain that allows consumers to borrow against the equity in their home without the paperwork-intensive, 45-day process most lenders require.
In fact, borrowers can get approval in five minutes and funding in five days, the company claims.
The new Figure Home Equity LoanPLUS product comes complete with e-notarization capabilities to fully digitize the process and utilizes the firm’s blockchain protocol, Provenance. The company claims its technology platform greatly streamlines the application and approval process and improves the borrower experience.
As far as the loan amounts go, qualifying homeowners can borrow $15,000 to $100,000. Annual percentage rates start as low as 5.99% with terms of five, seven, 10 and 15 years.
“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,” says Wendy Harrington, chief marketing officer at Figure, in a statement. “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.”
According to a Reuters report, Figure will initially hold the loans on its balance sheet, but has plans to sell or securitize them later.
The company will charge an origination fee ranging from 1% to 3% of the initial drawn amount.
The product is currently available in 25 states.
Figure also plans to launch an alternative to reverse mortgages for empty nesters and retirees, under which homeowners sell and lease back their property.