Figure Technologies has announced it has sold digital mortgages to an asset management giant using blockchain technology, a first-of-its-kind transaction that the company says reduces the time, risk and costs associated with traditional loan sales. .
Figure originated and sold its eNote mortgages to asset management giant Apollo through Figure’s Provenance Blockchain marketplace, he said. The assets are in the form of non-fungible tokens, or NFTs, and Apollo purchased the undisclosed volume of loans through a digital currency.
Figure registered its mortgages through its own electronic lien and note registry system, Digital Asset Registration Technologies, or DART, the company’s alternative to MERS databases. Figure’s combined ledger and blockchain technologies provide immediate and automated asset management, he claims.
DART and Provenance Blockchain eliminate the need for duplicate recording of a loan in multiple MERS databases, according to Figure, and avoid slow and risky trilateral settlements between originators, warehouse banks and investors.
“Blockchain can provide greater protections and transparency in the ownership process for consumers and real-time settlement for investors, replacing trust with truth to create a faster, more efficient process for everyone,” said Daniel Wallace, chief executive of Figure Lending, in a press release.
Figure will service the loans, a spokesperson said.
Based in Charlotte, North Carolina, Figure was founded in 2018 by SoFi founder Mike Cagney and develops blockchain-based financial services, offering home loans, student loan refinances and personal loans. The company is also in the midst of a merger with Homebridge Financial Servicesa lender with a network of retail branches and two third-party origination units.
The transaction is the latest introduction of blockchain to the mortgage industry, as industry players big and the little ones experimented with the technology. Bay Area fintech Haus this month unveiled its HausCoin cryptocurrency enabling ownership equity trading through blockchain technology.