Quick and Simple
San Francisco-based fintech company Figure Technologies, Inc. has launched a platform it says will revolutionize the home equity market.
Figure Home Equity LoanPLUS allows customers to borrow against their home equity without extensive paperwork or the 45-day processing period required by most lenders. The company is branding its new product as a completely online opportunity for customers to access loan approval in five minutes, in addition to receiving their approved funding in five days.
Figure has already made a name for itself in the blockchain industry as a company dedicated to developing new technological resources for homeowners to strengthen their finances. According to CoreLogic’s most recent Home Equity Report, homeowners have seen their home equity increase year over year. Since 2017, this has led to a total $1 trillion gain in the home equity market. Attom Data Solutions also reports that originations of home equity lines of credit have seen a 14 percent increase throughout the first quarter of 2018.
Homeowners are increasingly investing in improvement projects to increase the value of their homes, and many seek a home equity loan to fund their remodels. According to a report from CNBC, a recent study by Houzz shows that 51 percent of roughly 130,000 surveyed homeowners intend to start new renovations or continue ongoing ones this year.
While homeowners have a variety of reasons to want to use their home equity, the process has often been complicated, stressful, and costly, especially for those who are unfamiliar with it. Figure aims to change these aspects of home equity products with LoanPLUS.
“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,” Figure Chief Marketing Officer Wendy Harrington said in a press release. “The status quo was far from ideal, so we reimagined it to reflect the advancements in technology to educate and empower people to make good financial decisions as they unlock their home equity to consolidate debt, invest in home improvement, or fund major purchases.”
Figure’s LoanPLUS platform aims to approve equity loans in as little as five minutes. Customers simply enter their information into the online form, indicate how much they would like to borrow and the term of the loan, and then complete the form with a digital signature, all aided by Figure’s eNotary to streamline the process. This allows Figure to alert customers to their loan approval much faster than other lenders. Once the loan is finalized, Figure disburses the funds, which takes as little as five days. Figure customers can also make draws over time as they pay the loan down.
Figure also says that LoanPLUS has no hidden fees. Most lenders involve numerous hidden charges, like late fees, appraisal fees, title fees, and prepayment penalties. Figure, on the other hand, charges only a loan origination fee. In addition to this, the company says customers can expect low monthly rates starting at 5.99 percent, with terms of 5, 7, 10, and 15 years.