GENERAL:
How is my account secure during application if my borrower doesn’t need a password?
To ensure the security of the account during the application process, we send your borrower a magic link via email. When prompted, the borrower should enter the email address associated with their account to access the account dashboard (Online Account.)
Will the name Figure show anywhere on the docs or marketing?
No. The entire customer experience (including the customer service phone line) and marketing materials are branded for your organization. The entire process flow appears as your respective brand to the customer. The only Figure reference will be within the Notice of Servicing Transfer informing the customer that Figure Lending LLC will be servicing the loan.
Do LOs need to charge points to earn income?
No. Compensation information is available from your organization.
Can this be used as a bridge loan?
This is not the intent of the product. Check with your organization to see if there is a bridge loan option.
BEFORE YOUR BORROWER APPLIES:
What types of properties are eligible for a Home Equity Line of Credit (HELOC)?
Single-family residences, townhouses, planned urban developments (PUDs), and most condos. However, please note that co-ops, commercially zoned real estate, multi-family (2+) real estate, manufactured housing, earth or dome homes, timeshares, log homes, houseboats, or mixed-use properties are not eligible for a HELOC. The property can be either the applicant's primary or secondary residence. Additionally, properties with title changes in the preceding 90 days or those determined to be in less than average condition are also not eligible.
What types of home ownerships are eligible for a Home Equity Line of Credit (HELOC)?
Borrowers who hold the subject properties in fee simple solely or jointly with others or through revocable trusts. In order to obtain a loan, your borrower’s name must appear in the county records as the owner of the property.
Do you offer loans for investment properties and second/vacation homes?
Yes, for both primary and secondary residences. However, a minimum credit score of 680 is required for investment properties.
Is insurance coverage required for a Home Equity Line of Credit (HELOC)?
Yes, hazard insurance is required for all properties and flood insurance for properties located in flood zone A or V. Your borrower may be asked to provide proof of insurance after the loan is closed.
What can a home equity line of credit be used for?
A home equity line of credit can be utilized for various purposes, such as debt consolidation, home improvement, or major purchases.
Is the interest paid on a Home Equity Line tax deductible?
The deductibility of interest and charges on a home equity product depends on the loan's use of proceeds. While a tax advisor must be consulted to determine the deductibility of interest and charges, the general rule is that if the proceeds are used for home improvement then the interest and charges are deductible.
Can a borrower obtain a loan on a fully paid-off home?
Yes, by offering both first and subordinate liens, we allow loans on homes owned free and clear of any encumbrances.
ACCOUNT:
How does my borrower access their account?
Log in to the account directly from the “Log in” option on the top right of the website. Primary applicants will log in using their email address and additional signers will use the “Have an access code” feature from the same login page.
When are payments due?
Payment amounts and due dates vary depending on when the loan closed (roughly 30 days thereafter, on or about the same date each month). Have your customer refer to the payments section of the credit agreement and the periodic statement.
What payment options do borrowers have?
Payments must be made via Automatic Clearing House (ACH) payments. As the servicer, Figure Lending LLC does not accept mailed checks. Customers can submit one-time payments or participate in Autopay.
Where is the periodic billing statement?
Periodic billing statements are delivered electronically and are available via the customer’s Online Account.
What if my borrower changes bank accounts?
They will need to log in to their Online Account to update information and set up the new account for Autopay, if applicable.
APPLICATION:
How to find out how much my borrower's property is worth?
We use an Automated Valuation Model (AVM) to assess the property's value. This model considers metrics such as recent sales of similar properties, public data records, and historical price trends in the housing market.
Can my borrower apply for multiple loans?
Yes. However, the loan's aggregate amount is subject to a limit of $400,000 per borrower and $400,000 per property, depending on their credit score. (The minimum required credit score is 640 in most states)
How does the draw work?
At the time of funding, the initial draw will be equal to the borrower’s credit limit minus the origination fee. As the initial draw is repaid, additional draws can be made. Additional draws must be at least $500 and may be up to 100% of the total loan amount or the available capacity on the line.
What is the term for additional draws?
The term for additional draws will be from the date of the additional draw to the end of the original term.
How are payments applied to the loan?
Payments are applied in the following order.
To the outstanding Periodic Finance Charge (interest)
To any amount that is in excess of the Credit Limit
To any charges incurred (fees), and
To the principal balance of each Draw and the origination fee.
What is an origination fee?
An origination fee is a cost to the borrower for the lender to provide a loan. It will range from 0-4.99% of the initial draw amount, depending on the credit profile and the state where the property is located. The fee is amortized (included) in the loan payment schedule and is deducted from the original loan amount. Some members will have the opportunity to choose their origination fee and may be able to reduce their fixed APR, and monthly payment offers by choosing a higher origination fee. However, other members will not be eligible to choose their origination fee due to fee caps imposed by state law. If the borrower lives in a state with a capped origination fee, they will be responsible for the fee up to the amount allowed by state law.
How does eNotary work?
Our eNotary will connect via an audio-enabled video session. The eNotary will confirm the borrower’s identity via the ID provided during the application process and ask a set of knowledge-based authentication questions.
How long does eNotary take?
We designed a simple and efficient process to complete our eNotary session. The entire session can be completed in minutes.
Why does my borrower pay a higher interest rate if they do not sign up for Autopay?
Autopay allows the monthly payment to be automatically deducted from the payment account, which streamlines the payment process and reduces the risk of payment default. We give a discount of 0.25% to customers who opt into Autopay during the application process.
Why does my borrower have to connect their accounts?
We use connected accounts to verify income and set up the loan for disbursement. At a minimum, they need to connect at least one checking account. If opted into Autopay, the same account will be used for the monthly payment.
What are qualified assets?
We accept Retirement, 401k, IRA, Roth, Savings, Brokerage, Money Market, and CD accounts.
How does my borrower verify their income?
We analyze inflow in the connected accounts to verify stated income. We can perform this analysis through connected bank accounts, qualified asset accounts, tax returns and/or pay stubs. All sources must be connected during the application process.
What is an additional signer?
An additional signer is anyone who is listed on title or who has a vested interest in the property whose signature is required on the mortgage or deed of trust. This can be a spouse in certain states or an additional trustee if title to the property is vested in the name of a trust.
If more than one person is on the home's title, does everyone on the title need to be on the loan?
Yes, all additional owners on the title will be required to sign the mortgage document. However, we only allow one owner to apply for and sign on the loan.
When will the borrower receive funds?
Once the loan process is fully complete and the 3-day rescission period has expired (if applicable), funding will be initiated the next day to the account specified during the application process. However, it may take an extra day or two for the funds to be available in the account.
RATE AND COST:
What line of credit amounts are offered?
For most states, lines of credit start at $25,000 and go up to $400,000. If the borrower’s property is located in Alaska, the minimum loan amount is $25,001.00. (The minimum required credit score is 640 in most states)
For 5,10, and 30 Year Terms, the Loan Limits are as follows:
FICO Score of 640-850, minimum loan of $15,000
FICO Score of 640-679, maximum loan of $125,000
FICO Score of 680-699, maximum loan of $200,000
FICO Score of 700-739, maximum loan of $250,000
FICO Score of 740-759, maximum loan of $350,000
FICO Score of 760+, maximum loan of $400,000
What are the loan terms?
The loan terms are 5, 10, 15, and 30 years.
What are the interest rates?
We offer fixed-rate loans. In other words, the rate that applies to each draw is fixed at the time of the draw and won’t change over time.
What are the fees?
There are no account opening fees, maintenance fees, or prepayment penalties. There is only an origination fee, which is the cost to provide a loan. The fee ranges from 0-4.99% of the initial draw, depending on the credit profile and the state of the property, and is amortized (included) in the loan payment schedule. The borrower may also be responsible for paying for the cost of manual notarization if the county doesn't permit eNotary, recording fees depending on the county, or a subordination fee.
Can a borrower pay early without penalty?
Yes, a borrower may pay back the loan at any time. There are no prepayment fees.
How long does the borrower have to take an additional draw?
Additional draws will be available for 2-5 years from the origination date, depending on the loan term. Check the terms of the credit agreement for the exact draw period expiration date.
