The platform allows investors to qualify based on real estate cash flow rather than personal income, giving them access to flexible capital for real estate investments and reducing both time and costs.
Figure said the system also allows lenders to reduce the time it takes to process DSCR loans. Traditional DSCR loans usually take 21 to 30 days to close, and banks typically require 45 days or more, but the new platform claims to make financing available in as little as five days.
The automation also claims to reduce origination costs by as much as 80%, while average industry costs have increased by 35% to more than $10,000 per loan.
“This launch demonstrates the power of combining AI automation with blockchain standardization to remove the friction that has slowed DSCR lending for years,” said Anthony Stratis, vice president of lending partnerships at Figure.
“Our platform delivers speed, fraud prevention, cost savings and simplicity at scale – helping brokers grow their businesses, lenders expand their offerings and investors continue to realize efficiencies through our blockchain-based capital market.”
For existing partners such as banks, mortgage companies and credit unions, Figure says the platform can be easily integrated via web and API connections.
Key features of the platform include Figure’s proprietary technology that replaces manual underwriting reviews; AI and optical character recognition (OCR) to automate document reviews; automated valuation models for DSCR refinancing loans under $400,000; and proprietary rental income verification models to accelerate approval.
“Figure’s DSCR platform is a game-changer for real estate investors and financial institutions alike. By combining AI-powered automation with blockchain transparency, Figure has created a product this market has been waiting for,” said Eric Hines, co-founder of West Capital Lending.
“At West Capital, we support companies that are reshaping the financial services industry with technology, and we are excited to be one of the first partners to bring Figure’s DSCR to market for borrowers who want smarter, faster ways to build wealth through real estate.”
Figure’s launch of a new offering builds on its momentous year of growth, including its debut on the Nasdaq Global Select Market in September.
Co-founded in 2018 by Mike Cagney, Figure uses blockchain technology to connect lenders and borrowers in consumer lending, trading and digital asset investing.
The company said it can fund mortgage loans in just 10 days, compared to an industry average of 42 days. Figure and its partners have generated more than $18 billion in home loans and other products, making the platform the largest non-bank provider of home financing.
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