Figure gives Cagney a HUGE second chance
It’s the beginning of the year and many of us are looking to find a way to get into better shape. If the pandemic has you super un-motivated and generally out-of-whack, it may be time to explore yoga for some much-needed mindfulness. Don’t think you can do the stretches? No problem. CNN has a cool guide for doing yoga if you are not very flexible… yet.
Figure Lending closed a $100 million financing facility for conforming and jumbo mortgages from J.P. Morgan. The fintech uses blockchain technology to facilitate its lending. This brings the total of funds raised to close to $1.5 billion.
The company was founded in 2018 by serial technology entrepreneur Mike Cagney, who also founded SoFi and built the company into a multi-billion dollar business under his leadership as CEO.
Is this Cagney’s second chance?
Cagney announced his departure from SAoFi following a report that cited multiple current and former SoFi employees alleging that “some executives, including the company’s former finance chief, engaged in or tolerated what they described as improper behavior toward women in recent years.”
That report cited Cagney’s behavior who also engaged in acts of this nature, but that wasn’t the only thing. Around the same time, SoFi’s board and executives also heard complaints from investors that Mr. Cagney had made misstatements to them over the start-up’s student loan products, according to emails between investors, executives and the board that were obtained by The New York Times (paywall).
Given the scope of the scandal, the success of Figure shows just how forgiving our industry can be to some of our worst actors. And whether or not you believe in second chances doesn’t matter; Cagney’s getting a great one, anyway. It’s now everyone’s hope that he’s cleaned up his act.
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Optimism is taking hold among the country’s largest banks
The biggest banks in the United States have begun to pare back the enormous reserves they had socked away in case of an economic disaster, according to a report in the NYT (also, paywall).
In releasing the reserves, the bank will look to initiate more lending, across the board, and that includes the mortgage market. The CEOs of JPM, BofA, Citi and Wells are all pining the hopes of economic recovery on the vaccine roll-out.
“Thank God for the vaccine, folks,” Jamie Dimon, the chief executive of JPMorgan, said on a call with reporters on Friday.
The banks still expect that many of their customers will eventually reach a point at which they can no longer pay back some of their loans and there are no more stimulus funds or unemployment benefits to keep them afloat. But, at the moment, that reckoning looks farther out — perhaps as late as the middle of next year, because of the fresh stimulus.
🔥 Weekly Rise&Shred Ep 003 🔥
With Josh Pitts & Jacob Gaffney
One of the best mortgage events is this week, and FREE
Quick question: Is your business future proof? We’d like to think all of our businesses can withstand whatever the market throws at us, but how can we sure? We can’t, but we CAN be prepared.
Our friends at NEXT Mortgage Events is holding their virtual #NEXTWINTER21 and they’ve got some great, great content, and Rise&Shred will NEVER promote anything that isn’t 100% AWESOMENESS!
Also, it’s FREE, so sign up. This is NOT a paid advertisement. We feel this is worth your time.
It run late Wednesday through Friday, and you can sign up here. It looks like it will kick off with an Economic Update with First American’s Odeta Kushi.
Hey, also, this panel caught our eye: Futureproofing with Technology and Process Design. And there will be vital updates from experts on eClosings, appraisals, using Salesforce, to name a few topics.
Here’s the full agenda here, don’t miss it!
Let’s do what we can to support NEXT; they always Show up. Hustle. Repeat. Every Day.
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