Financial Service

Homebridge Financial Services merges with blockchain fintech Figure

Mortgage banker Homebridge Financial Services is merging with Figure Technologies just days after the fintech firm closed on a $200 million Series D financing round.

Figure was created by SoFi Technologies founder Mike Cagney after he was forced out of that company in 2017 over allegations of inappropriate workplace behavior.

Figure uses its blockchain technology to originate, finance, service and trade loans. It began with home equity loans in 2018 and now also handles mortgage refinancings, student loan refinancings and personal loans.

“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 we can introduce to new payment and lending products,” said Cagney in a press release. “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.”

(L-R) Figure Technologies founder Mike Cagney, Homebridge CEO Peter Norden

Privately-held Homebridge originates first mortgages through a retail branch network, as well as two third-party origination units, Homebridge Wholesale and REMN Wholesale.

“This is going to deliver real benefits and efficiencies for our customers and accounts,” said Homebridge CEO Peter Norden. “The Homebridge team is gaining a tech platform partner that will help us maximize our customer experience and set us apart from the competition.”

Houlihan Lokey was Homebridge’s financial advisor with Zukerman Gore Brandeis & Crossman as legal counsel to Homebridge. On Figure’s side Citi served as lead financial advisor along with J.P. Morgan Securities; Davis Polk & Wardwell served as legal counsel. Bradley Arant Boult Cummings was regulatory licensing counsel to both companies.

While terms of the deal were not disclosed, the Series D financing valued Figure at $3.2 billion. Investors in the round included Apollo Global Management, Blockchain.com, Rockaway Blockchain, HOF Capital, Endeavour Capital, National Bank Holdings, Goldentree Asset Management and L1 Digital.

Last November, Figure filed a national bank charter application with the Office of the Comptroller of the Currency. The Council of State Bank Supervisors then filed a suit targeting the OCC’s power to grant that charter. That litigation was paused for 90 days in June.