AI Agents Boost Home Equity Loan Closures
A new system helps stalled applicants complete routine steps, significantly increasing the number of home equity loans that are successfully funded.
Figure Technology Solutions reports that integrating an artificial intelligence agent with human loan originators resulted in a 143% increase in funded home equity line of credit conversions. The system is designed to handle repetitive tasks for applicants who have already started the process but stalled, ensuring they do not drop out of the pipeline before reaching a human professional.
According to GN technics/ai (en-US), the agent contacts borrowers via voice and text to assist with specific administrative steps such as credit authorization and identity verification. Once these routine hurdles are cleared, the borrower is transferred to a human originator to finalize the loan, creating a workflow that combines automated persistence with human judgment.
Addressing Pipeline Leakage
Industry data indicates that nearly half of all home equity applications fail to close, representing a significant loss of potential revenue. Figure’s internal analysis from July showed that applicants who interacted with the AI agent advanced through application stages at rates 30% to 52% higher than those who did not. This suggests that much of the lost production is due to a lack of consistent follow-up rather than borrower intent.
The primary benefit for lenders is the ability to recover existing marketing spend. By focusing on applications already in the pipeline, the system helps borrowers access equity without needing to refinance low-rate first mortgages. This approach allows institutions to maximize the value of their current customer base rather than relying solely on acquiring new leads.
Human Oversight Remains Central
Figure CEO Michael Tannenbaum described the model as a synergy between humans and agents. The AI does not replace the final conversation or make lending decisions; it merely clears the administrative path. This division of labor ensures that human originators spend their time on complex negotiations and relationship building rather than chasing down missing documents.
However, this model introduces regulatory considerations. Lenders must ensure that automated calls and texts comply with consent laws and that borrowers are clearly informed they are interacting with an AI. Additionally, the boundaries of licensed activity must be strictly maintained to prevent the agent from engaging in unauthorized lending advice or promises.
Broader Strategic Implications
This deployment is part of a larger strategy to boost home equity production across Figure’s partner network. Recent data shows that partners using the platform are originating significantly more volume than their pre-implementation baselines. The new agent targets a specific bottleneck in this growth, aiming to convert more of the existing applicant pool into closed loans.
While the results are promising, the trade-off involves increased complexity in customer service operations. Lenders must manage the handoff process carefully to avoid confusion or frustration. The success of this model depends on maintaining transparency and ensuring that the automated interactions enhance rather than hinder the borrower’s experience.
