Hometap Issues its First Rated HEI Securitization

Hometap Equity Partners recently issued its inaugural securitization of home equity investments.

The deals differ from traditional home equity loans in that homeowners receive cash in exchange for sharing a portion of their home price appreciation/depreciation with investors.

The $217 million Hometap deal received a BBB rating from Morningstar DBRS. Cara Newman, head of structured finance at Hometap, told Inside MBS & ABS that ratings are helping to boost investor demand for HEI securitizations. Morningstar published rating criteria for the deals in late 2023.

This article originally appeared on Inside Mortgage Finance. See the full article here.