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Sagent’s Playbook to Modernize $1 Trillion in Mortgage Servicing

This month marks an exciting milestone in Sagent’s modernization of mortgage servicing for America’s top banks and lenders. We’re adding mortgage/consumer lending disruptor Figure as a client and a software innovation partner. Figure is exciting because they’re a consumer-first leader that’s making major moves in both mortgage and blockchain.

Below, I quickly detail these topics for Sagent customers, partners, prospects, and all my industry colleagues and friends pushing to make homeownership better for the consumers we all serve.

Figure as a Sagent client
Figure will become a servicing customer of Sagent as Figure aggressively grows mortgage market share.

You may have seen that Figure recently raised a $200 million series D round at a $3.2 billion valuation. Soon after that, Figure made its first major mortgage deal with Homebridge, which originated $25 billion in mortgages last year.

This is a key step in Figure’s intent to become a scale mortgage player, and we’re honored they’ve chosen Sagent as their servicing software partner.

As a leader in consumer-first lending (Figure’s Co-Founder also founded SoFi, which now has a $12 billion market cap), Figure knows how important it is to get servicing right across performing, nonperforming, and consumer platforms.

They chose the Sagent team for four main reasons: (1) our consumer-first modernization vision; (2) execution under our new management team since last year; (3) our current scale powering more than $1 trillion in outstanding balances on LoanServ, Tempo, and CARE; and (4) our strong financial backing from Warburg Pincus that enables us to keep executing at scale.

Figure as a software modernization partner
I’m thrilled we now get to expand Figure’s mastery of consumer experience out to all Sagent customers.

Here’s how: Figure already services billions in HELOC and personal loans on an ultramodern consumer platform they built, and we’ll begin combining that consumer experience with our CARE consumer platform.

This rapidly accelerates modernization of the experience Sagent servicers deliver to borrowers, and quickly improves efficiency for servicers’ consumer-facing teams.

Sagent’s LoanServ (core servicing) and Tempo (default management) platforms will continue to seamlessly power the CARE experience. The deep, precise functionalities of LoanServ and Tempo—plus real-time data sharing across LoanServ, Tempo, and CARE— are core strengths Sagent will keep building on.

In short, this deal combines Figure’s speed of software innovation with Sagent’s granular servicing depth and precision across performing and nonperforming mortgage lifecycles.

A paradigm shift in servicing begins now
We expect the Sagent/Figure innovation partnership to play out in two phases. Phase 1 is demonstrating rapid progress on modernizing our consumer platform for Sagent customers. Phase 2 is beginning to prove mortgage blockchain use cases.

Blockchain for mortgage isn’t mainstream yet, but we believe it can/will be soon. Instead of constant QA/QC and reunderwriting/revalidating loans across all the originations, securitization, and servicing lifecycle, blockchain can streamline a lot of this—which brings transparency, speed, cost savings, and increased portability of MSRs.

The Figure team is also behind the public Provenance Blockchain, and Figure has already used Provenance to prove these moneysaving concepts with billions in real HELOC and consumer loan assets. Now, Figure plans to prove these concepts with their mortgage assets.

As this plays out, other servicers may choose to do the same. This partnership aligns Sagent with Provenance to make it easier for servicers to explore blockchain if and when they are ready.

For today, I hope you remember these two takeaways: Sagent has a new scale mortgage customer and SaaS innovation partner in Figure, and we will use this partnership to speed up modernization for our servicing customers, their teams, and their borrowers.

The future of servicing is bright, and Sagent is honored to help light the way with our customers and partners. Please reach out to me directly at daniel.sogorka@sagent.com with any questions. We’d love to connect and talk shop.


About Author: Dan Sogorka

Dan Sogorka is the CEO and President of Sagent, a leading fintech company modernizing mortgage and consumer loan servicing. Sogorka has led digital transformation in housing for two decades. Previously he served as CEO of digital mortgage point of sale provider Cloudvirga, President of EXOS Technologies, EVP of Servicelink (a $1B revenue subsidiary of Fidelity National Financial), and Division President at mortgage servicing and data provider Black Knight.

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