Figure and Apollo Execute Mortgage Transactions Using Blockchain Technology to Transfer Ownership

Rhea-AI Summary

Figure Lending and Apollo have completed a pioneering transaction utilizing blockchain technology for digital mortgage loans, aiming to enhance efficiency in the $3 trillion mortgage market. This innovative process involves the origination of eNote mortgages secured on the Provenance Blockchain, with real-time multi-party settlement capabilities. The approach addresses inefficiencies associated with traditional mortgage transactions, reducing risks and costs. By employing this streamlined system, the mortgage ecosystem is expected to transition into a more modern and digital future.

Positive

• Completed a first-of-its-kind digital mortgage transaction enhancing efficiency.
• Utilization of blockchain for real-time, multi-party settlements reduces risks and costs.
• Increased trading velocity allows for quicker asset sales, minimizing financing risks.

Negative

• None.

New, secure and streamlined mortgage loan registry brings greater efficiency and transparency to the mortgage industry

NEW YORK and SAN FRANCISCO, March 17, 2022 /PRNewswire/ -- Figure Lending LLC ("Figure") and Apollo (NYSE: APO) have completed a transaction involving the origination of digital mortgage loans and transfer of ownership via blockchain technology. The secure, streamlined process was a first-of-its-kind in the mortgage industry and holds the potential to revolutionize the $3 trillion mortgage ecosystem.

Figure has begun originating eNote mortgages that are on-boarded as unique digital assets on the Provenance Blockchain. At the same time, they are auto-registered with Digital Asset Registration Technologies, Inc. (DART), a combined lien and eNote registry system developed by Figure Technologies, Inc. and used in place of the "MERS" databases. DART monitors blockchain-based asset transfers and offers a streamlined and more efficient alternative to the existing loan tracking database systems and the often delayed, weeks-long settlement process for paper promissory notes.

In the transactions, Apollo, through investment vehicles it manages, purchased these digital assets via an integrated, blockchain-based marketplace that, when coupled with use of a connected digital currency account such as USDF, enables real-time, multi-party settlement with less risk.

The friction, risks, and costs involved in the traditional loan sale and delivery process can all be reduced using the DART and Provenance Blockchain systems, which allow for immediate and automated asset onboarding, real-time settlement of loan pledges and sales, and use of an integrated registration system that can automatically reflect transfers of loan interests. The process has traditionally required duplicative registration of a loan in multiple "MERS" databases and slow and risky trilateral settlement arrangements with originators, warehouse banks, and investors.

"With technology impacting all areas of our lives, it is time for participants across the mortgage ecosystem to experience an improved process that simply works better and costs less," said Daniel Wallace, GM of Figure Lending. "Blockchain can provide enhanced 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. This important development demonstrates just one way that blockchains will provide significant improvements that streamline the mortgage lending space."

"When Apollo and Figure formed a strategic partnership, we saw the potential to apply the Provenance blockchain – built specifically for the financial services industry – to processes across the investment lifecycle," said Apollo Partner Robert Bittencourt.  "We are excited to have now completed our first use case with this mortgage transaction, executed in a way that we believe can dramatically improve efficiency in the mortgage and lending ecosystem."

With these transactions, Figure has mapped the industry's transition into the modern digital age. The entire mortgage industry – originators, private investors, warehouse lenders, and government agencies – has recently begun to recognize the value of digital mortgages, from reduced shipping and custodial costs to increased accuracy and security. And most importantly, it has increased trading velocity, allowing assets to be sold more quickly, minimizing the need for equity capital, financing lines and mark to market risk. 

Using Figure's fully-digital, tokenized loans – the first of their kind, and representing one of the first and best real-world applications for unique digital assets and NFTs – the lending industry can leverage Provenance Blockchain's transformative promise of real-time settlement and an immutable loan record. Ultimately, this will lower costs and improve transparency for consumers by reducing the time and expense associated with transferring ownership, verifying data and servicing the customer. 

About Figure
Figure is transforming financial services through blockchain, bringing speed, efficiency and savings to both consumers and institutions. Figure continues to unveil a series of fintech firsts across the capital markets, investment management, and banking and payments sectors. Figure leverages Provenance Blockchain for loan origination, servicing, financing and now private fund services. The company was founded in 2018 by serial technology entrepreneur Mike Cagney, who also founded SoFi and built the company into a multi-billion-dollar business under his leadership as CEO. Learn more about https://www.figure.com/.

About Apollo

Apollo is a global, high-growth alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of December 31, 2021, Apollo had approximately $498 billion of assets under management. To learn more, please visit www.apollo.com.

Contacts
Joe Ziemer
VP of Communications
Figure
(646) 206-9090
jziemer@figure.com

Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com

View original content:https://www.prnewswire.com/news-releases/figure-and-apollo-execute-mortgage-transactions-using-blockchain-technology-to-transfer-ownership-301504772.html

SOURCE Figure

FAQ

What is the significance of Apollo's partnership with Figure?

The partnership aims to enhance efficiency in the mortgage industry through blockchain technology, streamlining processes and reducing risks.

How does blockchain technology improve mortgage transactions?

Blockchain technology enables real-time multi-party settlements, automated asset onboarding, and reduces the risks and costs associated with traditional mortgage processes.

What is the value of the mortgage market that is being targeted by this technology?

The mortgage market being targeted by this technology is valued at approximately $3 trillion.

What type of mortgage assets are being originated by Figure?

Figure is originating digital eNote mortgages that are secured on the Provenance Blockchain.

When was the transaction between Figure and Apollo completed?

The transaction was completed on March 17, 2022.