Figure Technologies Inc. has developed a way for baby boomers to convert their home equity into retirement funds. With Figure Home Advantage, their home is sold and leased backed to the seller locking in any gains on the property.

"We're building solutions to help Americans cope with this looming retirement issue. With rising interest rates, cash-out refinancing is an increasingly painful way to meet cash flow needs. Yet for homeowners nearing or already in retirement, home equity may be the most important source of money they have to support retirement," said Wendy Harrington, chief marketing officer at Figure.

Here’s how it works. Figure buys the home and grants the seller a lease that renews annually, leaving the homeowner in charge of how long they stay. Homeowners get their proceeds in one lump sum to bolster their nest egg, cover their expenses or fund what matters most to them. Figure pays and handles property taxes, homeowner's insurance and ongoing maintenance of the home.

In addition, here are additional points to consider:

• Access more cash: In a typical sale-leaseback agreement, 80 to 90 percent of the home's value commonly goes directly to the homeowner. In contrast, reverse mortgages offer 35 to 60 percent; and cash-out refinances, which are costly now that rates have risen.
• Lock in housing gains: With housing prices and home equity at all-time highs in many cities across America, it's a good time to lock in gains.
• Increase stability: Participants know how much money they'll receive upfront and how much they'll pay each month in rent, making it easier to budget and plan for the future.
• Manage the unexpected: Unexpected repairs, rising property taxes, and costly maintenance no longer need to throw retirement plans off track, because Figure takes on those responsibilities and costs.
• Enjoy more flexibility and opportunity: While some baby boomers plan to stay in their current homes for many years, others are actively searching for their next destination, options which Figure makes available to them.

 Prosper, a peer-to-peer lending platform, will inaugurate a new digital Home Equity Line of Credit product in 2019, working with banks to improve the application process and reduce the time from application to closing.

Banks will have the opportunity to increase their HELOC business because they will be gaining access to Prosper’s customer base, proprietary technology and marketing expertise. If projections are correct, the opportunity is large: An estimated 10 million consumers will take out HELOCs between 2018 and 2022, which would be more than double the number originated from 2012-2016, according to a study from Trans Union.

Applying for and obtaining a HELOC has often been a difficult and lengthy process for consumers.But customers on Proper will be able to complete an online application within minutes, receive an instant HELOC prequalification offer, and save weeks versus the traditional process. HELOCs originated through Prosper will have no origination fee and offer the same competitive rates as banks.

“We are taking advantage of our expertise in consumer credit and personal loans to build a product that removes the complexity and time-consuming barriers in applying for a HELOC,” said David Kimball, CEO, Prosper Marketplace. “For many of our customers, a HELOC could be a better choice for their financial needs and we’re thrilled to be working with our bank partners to render the traditional process obsolete with a new digital HELOC process that is simple, fast and painless.”

Mortgage Guaranty Insurance Corp. has made its products available through an integration with Ellie Mae’s platform.

Customers can place orders for MGIC Rates, Delegated MI, Non-Delegated MI, and Contract Underwriting through Ellie Mae's Total Quality Loan Program. It’s designed to equip customers with the capability to streamline rate quote and order processes through automation monitor key data changes, alert users of when to re-order a rate quote or MI certificate and drive faster processing times.  Also, the new service offers increased visibility into order history and helps to ensure that data is accurate, organized and securely transmitted.

"TQL has been part of our workflow to help drive efficiency in our loan processing for years. We… believe it will be a valuable part of our loan process going forward," says Eric Webb, assistant vice president underwriting at Churchill Mortgage Corp.

"Lenders nationwide continue to seek new opportunities for mitigating costly errors and driving revenue through automation,” said Margaret Crowley, vice president of marketing and Customer Experience at MGIC.