Press release

Hometap Announces Closing of $278 Million Securitization of Hometap-originated Home Equity Investments

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Hometap, the Boston-based financial technology company pioneering debt-free home equity financing for American homeowners, announced the closing of HTAP 2024-2, a $278 million securitization backed by home equity investments originated by Hometap. Following closely on the heels of HTAP 2024-1, the significantly oversubscribed debut of Hometap’s proprietary securitization platform, this is the second securitization of Hometap-originated home equity investments this year.

The securitization closed on October 3, 2024 and featured a Morningstar DBRS BBB(sf)-rated $215 million Class A tranche, and a BBB(low)(sf)-rated $14 million Class B tranche.

“We continue to expand our capital market footprint and capabilities. This broadly subscribed securitization demonstrates our continued capacity to create investment products that resonate with investors,” said Jeffrey Glass, Co-Founder & CEO of Hometap. “Attracting capital is paramount to our ability to deliver on our mission of making homeownership less stressful and more accessible. We’re proud of the success of this transaction and grateful to the homeowners, partners, and investors who have placed trust in Hometap.”

Hometap’s HEI product allows homeowners to access the equity in their homes without taking on additional debt obligations or selling their home. 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. Features of the current macroeconomic environment (interest rates, high inflation, and increased reliance on borrowing) have helped HEIs gain significant traction with homeowners and investors in recent years. These challenging conditions have led homeowners to seek alternative financing solutions like HEIs — while simultaneously creating attractive investment opportunities for institutional investors — thanks to the asset class’s unique characteristics. The successful execution of multiple securitizations this year, including two featuring Hometap HEIs, demonstrates the growing sophistication and appeal of the HEI market. As a result, both homeowners and investors are recognizing the benefits of this rapidly-maturing asset class.

“The successful closure of HTAP 2024-2 further validates the strength of Hometap’s brand among capital markets investors,” said Cara Newman, Hometap Head of Structured Finance. “We are gratified that five investors chose to participate in the asset class for the first time through HTAP 2024-2. As investor awareness of and appetite for HEI assets continues to grow, we are committed to bringing securitizations backed by Hometap HEIs to market on a routine cadence. We will continue to scale our operations to meet the growing demand for HEIs, while remaining dedicated to maintaining the high standards of quality and integrity we hold ourselves to across the organization.”

Nomura and Texas Capital Securities served as co-structuring leads and joint bookrunners.

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 12,000 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.