Hometap, a FinTech leader based in Boston, has proudly announced its first successful securitization, named HTAP 2024-1.
This pivotal financial maneuver was supported solely by home equity investment (HEI) assets originated by Hometap itself. The transaction closed on June 27, 2024, featuring two tranches: a Class A tranche valued at $146m and rated BBB(sf) by Morningstar DBRS, and a Class B tranche worth $13m with a BBB(low)(sf) rating.
Hometap’s flagship HEI product allows homeowners to tap into their home equity without the need for additional monthly payments or selling their property. By partnering with homeowners, Hometap provides liquidity in exchange for a stake in the future value of the homes. The product has gained traction, especially in the current economic climate, where more homeowners are exploring alternative financing options amid high inflation and rising debt levels.
Hometap Co-Founder & CEO, Jeffrey Glass, remarked, “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.
“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.”
The offering saw participation from 17 unique investors, including six new to the asset class, indicating strong market confidence in Hometap’s initiatives.
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