Figure Targets Fannie Mae and Freddie Mac in Bid to Cut Mortgage Costs

Figure is making a direct move into the U.S. mortgage market, targeting the roles traditionally held by Fannie Mae and Freddie Mac. The company is positioning itself as a technology-driven alternative that could lower the cost of issuing and managing home loans.

The pitch centers on replacing legacy infrastructure with a more automated system. Figure says blockchain-based rails and digital underwriting can remove multiple intermediaries involved in the mortgage process, reducing both time and expense. By streamlining origination, servicing, and securitization, the company argues that savings can be passed directly to borrowers.

Fannie Mae and Freddie Mac currently play a dominant role in the housing market by purchasing and guaranteeing mortgages, which provides liquidity to lenders and stability to the broader system. Because of their scale and government backing, any effort to compete with or reduce their role represents a meaningful shift in how U.S. housing finance operates.

Figure is not proposing an immediate replacement of these institutions, but rather a gradual transition toward more efficient infrastructure. The company is advocating for broader adoption of blockchain in mortgage markets, arguing that existing systems are outdated and add unnecessary cost.

If successful, this approach could introduce more competition into a market that has long been concentrated among a few major players. However, regulatory approval remains a key challenge, given how central Fannie Mae and Freddie Mac are to the current system.