Prosper plans HELOC product launch in 2019
P2P lender Prosper will expand its offerings next year to include a new digital Home Equity Line of Credit (HELOC) product, reports David Penn at Finovate.
Wants homeowners to consider HELOCs as an option for financing
“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,” Prosper Marketplace CEO David Kimball explains.
California-based Prosper cited a TransUnion study that indicated rising home values encourage homeowners to consider HELOCs as an option for financing. The study estimated that ten million consumers would pursue HELOCs between 2018 and 2022, more than 2x the number of HELOCs taken out between 2012 and 2016.
Prosper and its bank partners will look to serve this demand by streamlining the HELOC application process, including offering an online application that can be completed in minutes, and an instant HELOC prequalification offer. No origination fee will be charged with HELOCs originated via Prosper, which pledges to offer the same competitive rates as the banks.
Founded in 2006, since then, the company has originated more than $13 billion in loans to help borrowers finance debt consolidation, home improvement projects, medical expenses, and special occasions.
The firm has raised more than $428 million in funding, most recently closing a $50 million Series G round led by FinEx Asia.
