Figure Technologies closed a $300 million prefunded securitization backed by Figure Connect loans, marking a shift in how the lender funds its mortgage originations. The deal structures investor commitments before loans enter the pipeline, giving originators visibility into available capital.
Figure CEO Mike Cagney framed the prefunding approach as providing "added certainty" to loan originators who partner with the platform. Rather than waiting for loans to close before securitizing them, Figure secured investor commitments upfront. This reduces execution risk and accelerates the funding timeline for originators relying on Figure's technology and capital access.
The prefunded structure benefits originators by guaranteeing capital availability before they originate mortgages. Loan officers and brokers using Figure Connect gain confidence that funded mortgages won't face delays at the securitization stage. For investors, the model allows them to deploy capital into a defined pool of loans that meet agreed-upon criteria before origination occurs.
Figure Connect serves as the company's loan origination platform for mortgage professionals. The platform integrates underwriting, documentation, and funding into a streamlined workflow. By securing $300 million in prefunded capacity, Figure enables its originating partners to scale production without capital constraints.
This securitization approach reflects tightening credit conditions across mortgage finance. Traditional correspondent lenders and mortgage banks face balance sheet constraints. Prefunded securitizations bypass these limitations by locking in investor demand before originators deploy resources to close loans.
The deal underscores Figure's strategy to become a preferred funding partner for independent loan originators. As the mortgage market remains competitive and capital-conscious, originators seek reliable access to funding. Figure's ability to prefund securitizations against Figure Connect loans provides that certainty.
The prefunded model also reduces warehouse lending demand. Originators typically carry loans on warehouse lines of credit pending securitization. Pref