“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 explained. “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.”
In a press release, Prosper cited a TransUnion study that indicated rising home values encourage homeowners to consider HELOCs as an option for financing. The study estimated that 10 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 and one of Finovate’s earliest alums, Prosper demonstrated its P2P platform at our first conference in 2007. 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.
“Maintaining a balanced marketplace that provides value to both borrowers and investors remains our highest priority,” Kimball summarized when the company’s Q2 results – and its milestone of more than one million loans originated – were announced in August. “Throughout 2018, Prosper has been raising interest rates and significantly tightening credit in order to ensure that we continue to provide a fair price for borrowers and a solid risk-adjusted return for investors,” he said.
The company unveiled Q3 2018 financial results this week, underscoring Prosper’s emphasis on “credit and pricing discipline” as well as plans for new products like the new digital HELOC offering.
Prosper has raised more than $428 million in funding, most recently closing a $50 million Series G round led by FinEx Asia.