Two years ago, Figure Lending implemented the Provenance blockchain to register mortgage ownership using its Digital Asset Registration Technologies (DART) solution in partnership with asset manager Apollo. Presently, DART is being introduced to lending partners, signifying a notable progression in mortgage transaction facilitation.
Grasping Figure’s Varied Services
Figure, a diverse company, established Figure Technology Services, the developer of the Provenance blockchain. Its subsidiary, Figure Lending, focuses on home equity loans (HELOCs) with a lending volume totaling $9 billion thus far. Furthermore, Figure securitizes some of these loans as asset-backed securities (ABS), which are tokenized on the Provenance blockchain.
DART: Enhancing Loan Origination and Transactions
DART stands out as one of Figure’s offerings, presenting a comprehensive solution for initiating, pledging, and trading loans. Through the utilization of eNotes, categorized as promissory notes, loans are transferred as non-fungible tokens on the DART platform, delivering heightened efficiency compared to traditional methods. By incorporating e-signatures and blockchain technology, transactions on DART occur instantaneously, eradicating settlement risks and the necessity for manual reconciliations.
Disrupting the Dominance of MERS
In the United States’ home lending domain, the Mortgage Electronic Registration Systems (MERS) registry system holds significant influence. However, rather than updating public registries with each mortgage transfer, MERS records the new owner while serving as the nominee for the actual lender. Despite its dominance, DART presents a formidable challenge to MERS, offering improved safeguards, transparency, and efficiency in mortgage transactions.
President’s View on Transformative Potential
Jackie Frommer, President of Figure Technology Solutions, perceives the introduction of DART to partners as a transformative opportunity for the mortgage industry. She envisions that expanding the utilization of DART will not only bolster safeguards and transparency but also streamline transaction processing, benefiting all involved stakeholders.
Broadening Product Offerings and Collaborations
While initially catering to HELOCs, DART intends to broaden its support to encompass other loan products beyond home loans. Synergy One Lending is the pioneering partner to embrace this innovative solution, indicating a promising trajectory for DART within the mortgage sector.
Diversification into Payments and Crypto Ventures
In addition to its lending operations, Figure delves into payments and cryptocurrency realms. Recently, it unveiled Figure Markets and introduced a crypto lending product, leveraging its existing mortgage licenses to provide loans against crypto assets. Figure Markets has secured funding, and Figure Technology Services has submitted filings with the SEC for stock market listing, signaling further expansion and growth strategies.
In Conclusion
Figure’s DART solution symbolizes a noteworthy advancement in the mortgage industry, furnishing a streamlined and efficient platform for loan origination and transactions. With its inventive approach and dedication to transparency and efficiency, DART is positioned to transform mortgage processing, benefiting lenders, borrowers, and industry stakeholders alike.