Figure reduces loan origination costs by 91% through blockchain platform, challenging Fannie Mae and Freddie Mac
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Jinse Finance reported that on May 6, Figure Technology Solutions (FIGR), a blockchain company led by former SoFi CEO Mike Cagney, plans to challenge Fannie Mae and Freddie Mac in the first-lien mortgage sector. Figure leverages its blockchain platform to reduce loan origination costs by 91%, directly competing with the dominant players in the U.S. first-lien mortgage market, Fannie Mae and Freddie Mac. The company offers a fast-track service, allowing Home Equity Line of Credit (HELOC) applications to be approved within 5 minutes and funds to be disbursed in 3 days, targeting the loan market under $300,000. Figure is pivoting to a marketplace model, expecting an adjusted EBITDA profit margin of 80-85%. Meanwhile, the company is in negotiations with ConsenSys’s MetaMask regarding DeFi protocol integration.
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