Figure expands Intellidebt offerings for debt consolidation

Figure Technology Solutions, a blockchain-native capital marketplace, announced on Monday an expansion of Intellidebt, its Direct Debt Payoff (DDP) solution. The move aims to allow borrowers to consolidate existing liens and high-interest debt directly through the loan application process.

The upgrade boosts borrower qualification potential by improving combined loan-to-value (CLTV) ratios, debt-to-income (DTI) ratios and lien position all while helping lenders increase conversions and reduce manual work.

With these new features, borrowers can now pay off and consolidate more types of debt, including liens, credit cards, personal loans, auto loans and home improvement loans. The Intellidebt expansion aims to offer a more flexible alternative to traditional cash-out refinancing.

Highlights of the new features include expanded lien payoffs and consolidation, along with a streamlined requalification process, which are designed to push higher conversion rates and sales volumes for lenders.

Debt consolidation remains the primary reason homeowners use home equity lines of credit (HELOCs). With consumer debt rising and more mortgage recasts or buydown expirations approaching, Figure’s updated DDP aims to help lenders address their borrowers’ needs while identifying new lending opportunities.

Per a press release from the California-based company, more than 6,000 Figure customers have used Intellidebt since its launch. Figure’s data shows these borrowers increased their FICO scores by an average of 27 points within the first month after using Intellidebt and paid off an average of $24,500 in outstanding debt.

“Lenders have been looking for a cost-effective solution for lower balance loans as they can be expensive to originate, so we’re pleased to expand access to low-cost, low balance refinance options. We’re redefining how borrowers access equity to manage debt, while giving lenders a smarter, faster way to serve more qualified applicants,” Figure CEO Michael Tannenbaum said in a statement.

“It’s a win-win-win for homeowners, their loan officers and the institutions that serve them.”