Home Point, which claims to be America’s second-largest wholesale mortgage lender for residential loans, is partnering with digital lending fintech Figure to offer a white-labeled digital home equity line of credit product to its customers powered by Figure’s software.

Why should we care?

The Figure-Home Point marriage is aimed at providing a cheaper and more efficient home equity loan process. Figure, which was founded by ex-SoFi CEO Mike Cagney, uses blockchain technology to allow consumers to receive approval in minutes and funding in a few days. Figure claims its solution generates significant savings, reducing the cost of origination from thousands to hundreds. The company is worth more than $1 billion and has spun off its blockchain technology into a separate entity called Provenance. The tie-up with Home Point is a big vote of confidence for blockchain-based loan origination. The company is also reportedly talking to many banks that are considering incorporating its solution.