On Friday, February 7, 2020, Asset-Backed Alert published an article about Figure’s upcoming securitizations. They wrote that the deals have been in limbo for more than a year, Morningstar was engaged as a rating agency on the transaction, and the deal has been derailed due to revelations that our assets include third-lien accounts. These assertions are categorically false.
Figure has two active securitizations about to be priced. The first will price this month. Morningstar was never engaged to rate these transactions, and the presence of third-lien accounts has had no effect on the timing of the securitizations. Figure’s buyers are fully aware that our loans include third and other junior-lien accounts, and the lien positions of every one of our HELOCs are visible via the Provenance blockchain.
Figure has strived to build a best in class loan origination, financing and takeout platform on Provenance. To date, over $1 billion of assets have traded on Provenance, and Figure’s two upcoming securitizations are bellwether transactions for blockchain. Figure has extensive buy-side and sell-side participation on Provenance, and Figure is now adding originators in both the United States and Asia to the blockchain. Figure’s HELOCs are highly sought after, and Figure is now adding first lien mortgage, student loan refinancing and other loan types to the platform.
We at Figure are strong believers in the freedom of the press. However, we believe that what Asset-Backed Alert did was reckless journalism.
Today, Monday February 10, 2020, Figure filed a federal lawsuit against Asset-Backed Alert’s producer, Harrison Scott Publications, Inc. in New Jersey, alleging defamation. Per the filed complaint, Asset-Backed Alert “created their own narrative, identified anonymous ‘sources’ to support their narrative, and recklessly published a false and misleading article to both drive their readership and harm Figure.” Such egregious statements must be met with an equally strong response. Figure will commit whatever resources are required to see this suit through to completion.
Figure is doing what few have done before us: building scalable production applications of blockchain for financial services. We welcome an open dialogue about Figure and blockchain – we have always been transparent – and we hope this suit helps facilitate a constructive dialogue.
Contact: Tina McNulty
Chief Communications Officer
Figure Technologies, Inc.