Nonbanks are fueling securitization of home-equity lines-of-credit, closed-end second liens and home equity investments. Issuance jumped in 2023 as refi business dried up. (Includes two data tables.)

CoreLogic expects home equity lending to increase next year following a lull in HELOC originations this year.

Industry analysts are projecting an increase in securitization of home equity loan products in 2024.

Redwood Trust and Point partnered to co-issue the second-ever rated home equity investment securitization.

The first rated HEI securitization, brought to the market by Saluda Grade and Unlock Technologies, received a BBB rating from DBRS.

The planned $223.7 million securitization includes home equity investment agreements originated by Unlock Technologies.

Saluda Grade has ramped up its efforts in the home equity agreements space with new securitizations and lines of credit.

Saluda Grade has announced new funding for its HEI business and is set to issue a HELOC securitization.

The new in-house home equity investment origination platform will operate through Redwood’s correspondent channel and a direct-to-consumer originations platform.

Spring EQ founder and CEO Jerry Schiano will continue to lead the firm alongside the company’s current management team.