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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