Figure HELOC is now a full Cash-out Refi alternative with the lowest costs
Figure Technology Solutions, a technology platform building the blockchain-based capital markets of the future, announced a significant expansion of Intellidebt, its Direct Debt Payoff (DDP) solution, empowering borrowers to consolidate existing liens and high-interest debt directly through the loan application process. This upgrade boosts borrower qualification potential improving Combined Loan-to-Value (CLTV), Debt-to-Income (DTI) ratios, and lien position while helping lenders increase conversions and reduce manual work.
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With these new features, borrowers can now pay off and consolidate more types of debt, including liens, credit cards, personal loans, auto loans, and home improvement loans. This improvement provides a more flexible alternative to traditional cash-out refinancing especially valuable for homeowners with adjustable or high-rate mortgages.
Highlights of the new features include:
- Expanded Lien Payoff and Consolidation: Borrowers can now pay off the most junior lien (1st, 2nd, 3rd, etc.) along with other unsecured debt within a single application.
- Streamlined Requalification Process: Once the lien and loans are paid off, borrowers are automatically requalified through Figure’s seamless digital experience reducing manual work and increasing pull-through.
- Higher Conversion and Loan Volume: Easier lien consolidation enables borrowers to qualify for higher loan amounts, which can improve lenders’ conversion rates and drive pipeline growth.
Debt consolidation remains the number-one use case for Home Equity Lines of Credit (HELOCs). Amid rising consumer debt and impending mortgage recasts or buydown expirations, Figure’s enhanced DDP offers lenders a powerful way to support homeowners while expanding lenders’ own opportunity set.
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Over 6,000 Figure customers have used Intellidebt since its launch; our data shows these borrowers:
- Increased their FICO scores by an average of 27 points within the first month after using Intellidebt
- Paid off an average of $24,500 in outstanding debt
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“Lenders have been looking for a cost effective solution for lower balance loans as they can be expensive to originate, so we’re pleased to expand access to low cost, low balance refinance options. We’re redefining how borrowers access equity to manage debt, while giving lenders a smarter, faster way to serve more qualified applicants,” said Michael Tannenbaum, Figure CEO. “It’s a win-win-win for homeowners, their Loan Officers and the institutions that serve them.”
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Source : businesswire