Figure Technologies Inc., a leader in transforming financial services through the power of blockchain technology, announced the close of a HELOC. securitization underwritten by Jefferies, Goldman Sachs, and J.P. Morgan. The FIGRE 2023-HE1 asset-backed securities (ABS) offering was comprised of Class A and B notes, rated AAA and A(low) by DBRS Morningstar, respectively. This is Figure’s first publicly rated HELOC ABS transaction since the company’s inception.
“Launching this rated transaction is an inflection point in capital markets, ultimately supporting more liquidity to U.S. homeowners,” said 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.”
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This milestone transaction enables Figure to source additional liquidity in capital markets, enabling even more homeowners a flexible and affordable way to access their home equity. Powered by blockchain technology, Figure’s HELOC digital application provides customers with a decision in as few as 5 minutes and funding in as little as 5 days.1 HELOCS are increasingly being used as an affordable alternative to personal loans or credit cards for large purchases, tuition payments, and debt consolidation. According to a recent Housing Finance Policy Center report, “with the economics of cash-out refinance worsening amidst higher rates, homeowners are showing increased willingness to use HELOC and home equity loans to tap equity.”
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.
“There continues to be demand for innovative lending solutions,” said Michael Wade, Head of US ABS Capital Markets of Jefferies. “We’re pleased to support this offering as an underwriter for our client, Figure.”
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 on the Provenance Blockchain 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.
SOURCE: PR Newswire