Boston-based fintech Hometap has securitized $217m of home equity investments through its first securitization – HTAP 2024-1.

The deal securitizes home equity investments made by Hometap.

HTAP 2024-1 was rated BBB ($146m Class A tranche) and BB(low) ($13m Class B tranche) by DBRS. The unrated Class C of $59m was not offered.

The deal was bought by seventeen investors. For six of these, it was their first home equity securitization investment.

The deal was structured by Barclays and placed by Barclays and Jeffries.

With an aging population in most developed countries, we expect to see demand for home equity advance products increase – which will in turn increase the securitization of this asset class.

Given the nature and potential upside on this asset, we expect to also see a considerable amount of private credit ABS backed by this asset class.