Figure challenges Fannie Mae and Freddie Mac, blockchain reduces lending costs by 91%

Techub News reports that, according to CoinDesk, blockchain company Figure Technology Solutions announced its entry into the primary mortgage market, directly challenging Fannie Mae and Freddie Mac. The company claims that through its blockchain platform, it can reduce loan origination costs from $11k to $1,000, a 91% decrease, while also shortening approval times from the industry average of 30 to 45 days to 5 minutes for approval and 3 days for disbursement. The company focuses on the sub-market of loans under $300k and is shifting from an asset-liability lending model to a market model, with an expected adjusted EBITDA profit margin reaching 80% to 85% within the next one to two years. Additionally, the company is in talks with MetaMask, a subsidiary of ConsenSys, to integrate its DeFi protocol Democratized Prime to support on-chain mortgage lending and auto loan borrowing.