Figure Technology (FIGR) CEO Michael Tannenbaum explains how his company’s technology is used to originate mortgages, how the real estate assets of Figure’s recent acquisition integrate into the platform, and what he’s seeing from the housing market overall.
We are a platform that largely in the mortgage space. We’ve got about 500 partners. They use our technology to originate mortgages and in doing so, we cut a ton of time and cost out of the system. So, we do one in about $1,000 versus industry average of 12.
And we uh can get that done in about as fast as five days versus industry average of 45. And this comes with
You’re faster and cheaper.
Faster, better, faster, cheaper. Pretty standard. And um we or standard for disruptors. And what we do is we have an embedded capital market called Figure Connect that’s capital light that the partner sell and ultimately can sell the loans into that marketplace and then we earn fees. And that’s our revenue model.
What about this acquisition that came up on the call as well? Kiavi, am I am I pronouncing that right? What does that mean for the company financially and strategically?
Yeah. Yeah, so Kiavi is the market leader in what’s called residential transition loans. And what a lot of people don’t realize is 25% of the housing stock is investor owned. So, this is a huge part of the economy. And Kiavi’s the market leader in loans for that space. And we were fortunate to to work with them for an acquisition. And our partners, the the 500 partners that work with us are really excited about getting access to that technology. Uh, and we’re going to add about 40% of our volume and over 100 million of EBIDA to our platform when we close this transaction later in the second half of the year.
You have this very sort of special front row seat really to like American homeowners. I’m just are there like bigger trends and themes that you find, I don’t know, surprising about our housing market?
Well, there’s 35 trillion of home equity outstanding, which is a huge number, right? As you’ve seen, home prices have gone up. There’s a bit of a lock-in effect, and as interest rates have also gone up, people are looking to tap that home equity as a way to make home improvements, to refinance debt. So this is a major trend. And figure and the growth that we have is really has a front row seat to that trend and we’re helping those partners, again, those 500 banks, credit unions, mortgage companies uh work with our technology to access that huge balance of home equity outstanding and ultimately help consumers tap it.
