Figure Technology Solutions will acquire Kiavi in a $717 million deal that increases its exposure to residential investor loans and the first-lien market, the companies announced Wednesday.

The acquisition positions Figure to deepen its reach in the single-family rental and fix-and-flip lending space. Kiavi has been a notable player in the investor loan market, focusing on borrowers who purchase and renovate properties.

Figure CEO Michael Tannenbaum discussed the strategy behind the purchase, highlighting first-lien growth and the company's M&A ambitions. The deal also integrates Adaptor AI, a technology that could streamline underwriting and loan servicing.

No mortgage rate or affordability details were provided in the sources. The move signals consolidation in the proptech lending sector as firms vie for scale in a competitive market.

Economists may watch whether such acquisitions shift pricing dynamics for investor loans. However, the deal's impact on broader housing affordability remains unclear.