Figure Announces Close of First Rated HELOC Securitization led by Jefferies, Goldman Sachs, and J.P. Morgan

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Apr 25, 2023, 08:00 ET

Deal Marks Watershed Moment for Figure, a Blockchain Technology company, and Points Toward Future of Advancing Blockchain in Traditional Finance

SAN FRANCISCO, April 25, 2023 /PRNewswire/ -- Figure Technologies Inc., a leader in transforming financial services through the power of blockchain technology, announced the close of a HELOC (home equity line of credit) 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."

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.

The deal is the latest in a series of milestones and rapid growth from Figure's blockchain-powered lending business. At the end of 2022, Figure reached HELOC originations of over $5 billion, supporting over 70,000 households across the U.S., and has established itself as the largest non-bank HELOC lender. Additionally, this announcement comes on the heels of Figure securing $300 million across multiple credit facilities, enabling further access to capital and growth.

About Figure
Figure is transforming financial services through blockchain, bringing speed, efficiency, and savings to consumers and institutions. Figure continues to unveil a series of blockchain firsts across the capital markets, investment management, and banking and payments sectors. Figure leverages the Provenance Blockchain for loan origination, servicing, financing, as well as private company stock management, fund registry, blockchain marketplaces and payments. The company was founded in 2018 by serial technology entrepreneur Mike Cagney, who also founded SoFi and built that company into a multi-billion-dollar business under his leadership as CEO. To learn more, please visit www.figure.com.

¹ Approval may be granted in five minutes but is ultimately subject to verification of income and employment. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing.

CONTACT: [email protected]

SOURCE Figure Technologies Inc.