Figure, a financial services firm utilizing blockchain technology, has announced a merger with Homebridge Financial Services. Figure was founded by CEO Mike Cagney, the founder of publicly-traded SoFi, a Fintech unicorn. The terms of the deal were not revealed. At the end of July, Figure announced a $200 million Series D funding round at a valuation of $3.2 billion.
Hombridge is a privately held, non-bank lender that operates over 180 retail branches and two wholesale divisions, Homebridge Wholesale, and REMN Wholesale. Homebridge holds FNMA, GNMA, FHLMC, FHA, and VA approvals, and has funded more than $25 billion in home loans at the close of 2020.
The merger of the two firms is said to be a transformational event marrying blockchain technology with a large traditional mortgage provider.
Cagney issued the following statement on the merger:
“We are bringing together the most robust, powerful and efficient technology ever seen in lending and pairing that with a $25 billion a year loan originator with 150,000 customers who we can introduce to new payment and lending products. We’re going to deliver to this all-star loan origination team at Homebridge a tech platform on Provenance Blockchain that is going to double their capacity for fulfilling loans.”
Peter Norden, CEO of Homebridge, added:
“To combine the technology expertise and consumer experience of Figure with our exceptional retail loan origination and wholesale teams throughout the country is going to be a revolutionary event in the history of the U.S. mortgage industry. This is going to deliver real benefits and efficiencies for our customers and accounts. The Homebridge team is gaining a tech platform partner that will help us maximize our customer experience and set us apart from the competition.”
Figure began its lending service in 2018 with home equity lines of credit (HELOC) and later expanded to student loan refinancing, mortgage refinancing, and personal loans. Over $5 billion in loans and securities have been originated, serviced, financed and traded on Provenance – an in house blockchain technology. Figure utilizes the Provenance Blockchain for loan origination, servicing, financing, as well as private fund services.