Two years ago, we covered Figure Lending’s utilization of the Provenance blockchain to record the current ownership status of mortgages through its Digital Asset Registration Technologies (DART) solution, in collaboration with asset manager Apollo. Presently, DART is being introduced to lending partners.
Figure, as a company, boasts a diverse range of operations. Figure Technology Services established the Provenance blockchain, while its subsidiary, Figure Lending, specializes in offering home equity loans (HELOCs), having already lent $9 billion. These loans are sometimes bundled as asset-backed securities (ABS), which are then tokenized on the Provenance blockchain.
Among its array of services, DART stands out by facilitating the origination, pledging, and sale of loans. These loans, in the form of eNotes, function as a type of promissory note that can be easily transferred as a non-fungible token on DART. Figure touts this as a more efficient option compared to existing solutions, with features such as e-signatures and automated reconciliations. Leveraging blockchain technology enables instantaneous transactions without settlement risks.
DART’s Competition with MERS Mortgage Registry
In the landscape of U.S. home lending, the MERS mortgage registry system holds significant sway. MERS is commonly listed as the lender but operates as the nominee for the actual lender, whose identity is recorded in the centralized MERS system. Rather than updating official public registries for each mortgage transfer, MERS logs the new mortgage owner. This entity functions as a subsidiary of ICE, the owner of the New York Stock Exchange, posing substantial competition for DART.
Jackie Frommer, President of Figure Technology Solutions, expressed, “Introducing DART to our partners signifies a groundbreaking opportunity within the mortgage sector, paving the way for digitalization and streamlined transaction processing.” Frommer believes that expanding DART’s usage through partners will enhance security, transparency, and efficiency, benefiting all involved parties.
Currently, DART supports HELOCs but aims to extend its support to various other products beyond home loans. The inaugural partner to embrace this solution is Synergy One Lending.
In addition to the aforementioned lending operations, Figure is also involved in payment services and cryptocurrency ventures. The company recently launched Figure Markets and introduced a crypto lending product. Leveraging Figure Lending’s existing mortgage licenses, Figure Markets offers loans collateralized by crypto assets. Notably, Figure Markets secured funding, and Figure Technology Services has initiated the process to list on the stock market by filing with the SEC.