Point closes $508.6M HEI securitization, largest to date

Point on Thursday announced the completion of a $508.6 million rated securitization backed by home equity investment (HEI) assets, marking what the company says is the largest transaction in the HEI market to date.

The transaction, which closed July 15, is Point‘s eighth rated securitization and its second of 2026. More than 30 institutional investors participated in the offering, including eight first-time investors on the company’s platform.

According to Point, the deal reflects continued growth in institutional demand for HEI-backed securities. The company said funding costs declined significantly from its previous securitization completed in February, with spreads on the BB (low) (sf) bonds narrowing by more than 220 basis points.

“Closing the largest securitization in the HEI asset class to date reaffirms the investment community’s confidence in this asset class and in the quality of the assets Point is originating,” Eddie Lim, co-founder and CEO of Point, said in a statement.

“Since pioneering the category in 2015, we’ve worked with our partners to build a durable, institutional-quality capital markets platform. That platform lets us access capital at scale, enhance liquidity and transparency in the market, and ultimately make home equity a more accessible financial tool for homeowners.”

The securities were issued through Point Securitization Trust 2026-2 and received ratings from Morningstar DBRS. The issuance included $328.6 million in senior Class A-1 notes rated A (low) (sf); $70.7 million in Class A-2 notes rated BBB (low) (sf); $44.5 million in Class B-1 notes rated BB (low) (sf); and $64.8 million in retained Class B-2 notes rated B (sf).

The securitization includes collateral contributed by eight purchasers on Point’s platform, including Tacora Capital Management and Deer Park Road Management. Point originated all of the HEIs included in the transaction and will continue servicing the assets.

Tacora Capital Management CEO Keri Findley said the transaction demonstrates the scale of Point’s origination platform and growing institutional interest in the asset class.

“The strength of institutional demand speaks for itself, and we’re excited to grow alongside Point as HEIs reach a broader base of homeowners,” Findley said.

Scott Burg, chief investment officer at Deer Park Road Management, said the investor base participating in Point’s securitization program has expanded considerably since his firm’s initial investment.

“The evolution of more participants at every rating level is the clearest sign that this asset class has matured,” Burg said.

Barclays Capital served as the sole structuring agent for the transaction. Barclays, Nomura Securities International and Cantor Fitzgerald were joint bookrunners, while East West Markets and StoneX Financial served as co-managers.

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.