Figure Technology Solutions has entered into a definitive agreement to acquire Kiavi, the nation's top residential transition loan (RTL) lender, in a $717 million transaction that adds more than $7 billion in annual first-lien volume to Figure's marketplace and expands its presence in investor-property lending.
The deal includes Figure's acquisition of Kiavi's technology and operating platform, while a joint venture between Figure and global investment firm Sixth Street will acquire Kiavi's balance sheet assets. The total transaction value is $717 million.
The acquisition also highlights Figure's growing emphasis on first-lien lending. The company said its first-lien segment grew approximately 2.5 times year over year in 2025 and projected that first-lien loans will account for more than 40% of consumer loan marketplace volume by 2027. Figure noted that the first-lien market is roughly 25 times larger than the second-lien market.
Kiavi specializes in financing residential real estate investors through short-term residential transition loans and long-term rental property loans known as debt service coverage ratio (DSCR) loans. Figure said the acquisition represents a $200 billion annual addressable origination opportunity that will be brought onto its tokenized marketplace infrastructure.
The company said Kiavi is expected to instantly add more than $7 billion in annual volume to Figure Connect, its marketplace for loan origination, funding, sale, and trading, while contributing more than $100 million in monthly flow to Democratized Prime, Figure's blockchain-native warehouse marketplace.
"Figure is relentless in our pursuit of moving the capital markets onto blockchain rails, and nine months past our successful IPO, this Kiavi transaction is a further pole vault into tokenization, first-lien diversification, and our agentic AI platform," said Michael Tannenbaum, CEO of Figure.
"Adding Kiavi's RTL and DSCR capabilities into our partner network will symbiotically supercharge their growth and the growth of our consumer loan marketplace."
A Bigger First-Lien Push
Founded in 2013, Kiavi provides financing to investors purchasing, renovating, and operating residential investment properties through technology-driven underwriting and lending tools. Following the close of the transaction, Kiavi CEO Arvind Mohan will join Figure's executive team as chief business officer.
"For the past 13 years, Kiavi has been focused on powering our data flywheel and proving what's possible when technology and industry expertise converge," Mohan said.
"This transaction represents a massive leap forward for the asset class. With Kiavi's industry-leading platform powered by Figure's innovative blockchain marketplace, we have the opportunity to deliver an entirely new — and unmatched — standard of reach, reliability, and execution."
The acquisition also brings a profitable lending platform onto Figure's network. According to the announcement, Kiavi generated more than $250 million in revenue and more than $100 million in EBITDA during a record year in 2025.
For mortgage executives, one of the more notable takeaways is how the acquisition accelerates Figure's evolution beyond home equity and second-lien lending. The company is using the deal to deepen its position in first-lien investor credit while adding one of the largest sources of RTL and DSCR production in the market.
What The Deal Signals
The transaction is also a reminder that institutional demand for investor-credit assets remains strong.
While much of the mortgage industry's attention remains focused on purchase market challenges and rate-driven volume swings, capital continues to flow into segments tied to residential real estate investors. By bringing the nation's largest RTL platform onto Figure Connect, Figure gains immediate scale in both business-purpose lending and DSCR production while expanding the volume flowing through its marketplace.
The acquisition may ultimately be less significant for its blockchain implications than for what it says about where mortgage companies see future growth opportunities. Figure is effectively making a larger bet on first-lien investor lending at a time when lenders across the industry continue looking for ways to diversify beyond traditional agency production.
"As long-standing partners of Figure, we are proud to continue working together as Kiavi joins the Figure platform," said Michael Dryden, Partner and Head of Asset Based Finance at Sixth Street. "We are pleased to be contributing our residential mortgage and private credit expertise to support Kiavi's growth as a leading originator."
The transaction is expected to close following customary regulatory approvals and closing conditions.
