Hometap Achieves Milestone in $217 Million Securitization Debut
June 27 2024 - 12:43PM
Business Wire
Company’s securitization of home equity
investments broadens investor participation and bolsters financial
support for homeowners
Hometap, the Boston-based financial technology company
pioneering debt-free home equity financing for American homeowners,
announced the closing of its inaugural securitization, HTAP 2024-1.
The transaction was backed entirely by Hometap-originated home
equity investment (HEI) assets. The transaction was significantly
oversubscribed, demonstrating the growing institutional interest in
the HEI asset class and strength of Hometap’s brand among
investors.
The securitization closed on June 27, 2024 and featured a
Morningstar DBRS BBB(sf)-rated $146 million Class A tranche, and a
BBB(low)(sf)-rated $13 million Class B tranche.
“This securitization is a pivotal step forward for Hometap,
allowing us to serve more homeowners in furtherance of our mission
to make homeownership less stressful and more accessible,” said
Hometap Co-Founder & CEO Jeffrey Glass. “We take pride in the
relationships we’ve built over many years with the homeowners we
serve and look forward to earning the trust of investors supporting
our securitization platform. In these transactions, we strive to
reflect Hometap’s core values of integrity, transparency, and
commitment to excellence. Our intent is to establish a regular
issuance cadence so that, in creating attractive opportunities for
investors, we are able to drive our homeowner mission forward with
greater momentum.”
Hometap’s HEI product lets homeowners access the equity in their
homes without taking out an additional monthly payment or having to
sell. By investing alongside homeowners, Hometap offers cash in
exchange for a share of their home’s future value — all without any
monthly payments over the life of the investment. In recent years,
the HEI industry has experienced substantial growth, driven by the
current macroeconomic environment that has prompted homeowners to
seek alternative financing solutions. With record levels of home
equity amidst high inflation, rising borrowing rates, and
increasing accumulation of personal debt, more homeowners are
looking to access their home equity without the burden of
traditional loans. As a result, both homeowners and investors are
rapidly recognizing the benefits of this emerging asset class.
“The broad base of investors participating in HTAP 2024-1
underscores the strength of Hometap’s reputation in the
marketplace” said Hometap Head of Structured Finance Cara Newman.
“HTAP 2024-1 drew support from 17 unique investors, including six
participating in the asset class for the first time. We are proud
of the transaction’s success and will work to continue building the
investor base for securitizations backed by HEIs. We look forward
to continuing our dialogue with investors and, by building a
best-in-class securitization platform, continue to deliver products
that resonate with investors.”
Barclays served as structuring lead and joint bookrunner, joined
by Jeffries as joint bookrunner. Morgan, Lewis & Bockius LLP
served as issuer's counsel, and Hunton Andrews Kurth LLP served as
counsel to the underwriters.
This press release is for informational purposes only, and is
neither an offer to sell nor the solicitation of an offer to any
for any other securities, and shall not constitute an offer,
solicitation or sale. Any offers will be made only by means of a
private offering memorandum. Statements in this press release may
be "forward-looking statements," and are subject to known and
unknown risks and uncertainties that may cause actual results to
differ materially from those expressed in such forward-looking
statements.
About Hometap
Founded in 2017, Hometap is a Boston-based fintech company on a
mission to make homeownership less stressful and more accessible.
Starting with its industry-leading home equity investment product,
the company has helped over 10,000 homeowners across the U.S.
access their home equity without having to take on additional
monthly payments or sell their home. Hometap continues to expand
its suite of innovative financial products and services, developing
a digital platform designed to help homeowners at every stage of
their homeownership journey to make more informed financial
decisions about their home — and take action on those decisions —
with confidence, speed, and ease. Learn more at hometap.com.
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Grant Waldvogel gwaldvogel@prosek.com 918-637-2195