Latest news with #HomeEquityAgreements
Yahoo
a day ago
- Business
- Yahoo
Nada's U.S. Home Equity Fund I Acquires $10 Million in Home Equity Agreements to Expand Diversified Portfolio
Nada's U.S. Home Equity Fund I has acquired 132 home equity agreements for more than $10 million, expanding its portfolio and accelerating investor access to the $34T U.S. home equity market. Dallas, TX, June 12, 2025 (GLOBE NEWSWIRE) -- U.S. Home Equity Fund I (US HEF), a first-of-its-kind real estate investment fund managed by Nada Asset Management (Nada), has acquired 132 Home Equity Agreements (HEAs) from an affiliate in a $10 million+ transaction. The acquired HEAs expand the fund's diversified portfolio of owner-occupied homes and further advance its mission to provide accredited investors with direct access to the $34 trillion U.S. home equity market. The transaction marks an important step in scaling the fund's portfolio with already-originated assets. These agreements span a wide range of geographies, property types, and homeowner profiles, helping accelerate capital deployment into a fast-growing investment category. Nada will host a live call on Thursday, May 22, 2025, at 2:00 PM EDT to provide a detailed overview of the newly acquired home equity agreements. The call will cover the geographic distribution, underwriting process, expected performance, and how these assets fit into the broader fund strategy. Investors and interested parties can register by clicking here. Launched earlier this year, U.S. Home Equity Fund I is designed to bring institutional-grade access and structure to home equity investing. Through a diversified pool of HEAs, the fund offers investors exposure to residential real estate appreciation while limiting downside risk through capped exposure and asset-level diversification. What is a Home Equity Agreement (HEA)? Unlike traditional debt-based financing, a Home Equity Agreement allows homeowners to tap into their equity without monthly payments or interest. In exchange for a lump-sum payment, the homeowner agrees to share a portion of their home's future value with the fund. For investors, this structure provides a way to participate in home price appreciation without the burdens of property ownership. 'Home equity has long been the foundation of wealth in the U.S., yet until recently, there's been no direct, scalable way for investors to participate,' said John Green, Co-Founder and COO of Nada. 'HEAs have changed that, and this acquisition is another step forward in building the most diversified, investor-aligned home equity portfolio available.' The U.S. home equity market has grown to over $34 trillion, nearly tripling since 2013. Institutional adoption of HEAs has accelerated, with $1.1 billion in securitizations completed in 2024 and rating methodologies from DBRS Morningstar and KBRA helping cement the asset class in institutional portfolios. A Structured Approach for Long-Term Growth U.S. Home Equity Fund I targets net IRRs of 14-17%, focusing on owner-occupied homes for stability and emphasizing downside protection through an exchange rate mechanism unique to HEAs. With assets originated and serviced by Nada through its platform, the fund is designed for transparency, and scalability. 'This is a defining moment for HEAs,' said Tore Steen, CEO of Nada. 'The market is now large enough, and the infrastructure mature enough, for home equity to stand alongside more traditional real estate assets in investor portfolios. U.S. Home Equity Fund I is structured to meet that opportunity head-on. Since 2022, Nada has originated more than 250 home equity agreements comprising over $115 million in home value and its active HEA portfolio has delivered realized payoffs with a weighted average IRR of 17% since inception. To learn more, visit This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans, and business plans) and may change without notice. You are cautioned that such statements are subject to risks and uncertainties that could cause future results to differ materially from those projected. Media Contact:Kevin Vandenbossmedia@ in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Americans Have Over $34T In Wealth Trapped In Home Equity — And Wall Street Is Trying To Get Its Hands On As Much Of It As Possible
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Home equity has been one of the largest sources of wealth in America for decades, but has been overlooked because of the limited options homeowners have to unlock it. With the amount of wealth tied up in equity reaching record highs, Wall Street has become increasingly aggressive in finding ways to tap into it. Americans now hold $34.7 trillion in home equity – more than the entire U.S. GDP. Of that, mortgage holders account for $17.6 trillion, and roughly $11.5 trillion is considered "tappable," according to data from ICE Mortgage Technology. It's a mountain of wealth. And Wall Street wants in. Homeowners once used cash-out refinancing to access their equity, but with 30-year mortgage rates hovering around 7%, that's no longer viable for many. Instead, homeowners are leaning into second mortgages, HELOCs, and other equity-tapping strategies that let them keep their original low-rate mortgage in place. That has ignited a boom in securitized debt backed by home equity. Wall Street is already cashing in. In 2024, firms issued over $18 billion in bonds backed by home equity products, triple the amount from the year before, and the pace hasn't slowed down in 2025. Firms like Annaly Capital, Angel Oak, and even Rocket Companies are creating a pipeline of second-lien and HELOC-backed bonds for institutional buyers. Check out: Wall Street has been quietly buying up equity in owner-occupied homes, and the strategy is kind of genius. Three major forces are driving this frenzy: Record-high homeowner equity, with average leverage at just 45% High mortgage rates make cash-out refinancing impractical Institutions are hungry for stable, yield-producing investments backed by real assets What stands out most is how quickly this is evolving. Forward flow agreements, where investors commit to buying loans before they're even made, are becoming more common. And securitizations are ramping up, drawing in more institutional players each quarter. There's also growing demand for alternative structures. Home Equity Agreements (HEAs), where homeowners get upfront cash in exchange for a share of future home value, are gaining traction. These deals more than tripled last year and are now drawing capital from some of the biggest names in private credit. While securitizing home equity loans isn't new, the scale, sophistication, and investor interest we're seeing now is. Some are comparing it to the early days of mortgage-backed securities, but this time with stronger credit quality, more regulation and far less exposure to subprime borrowers. That doesn't mean it's risk-free. If home prices fall or unemployment spikes, some of these bets could sour. But for now, the fundamentals, like low housing supply, high demand and strong consumer balance sheets, are working in Wall Street's favor. Read next: Wall Street's latest obsession? Taking slices of your neighbor's home equity and turning it into double-digit returns. Image: Shutterstock This article Americans Have Over $34T In Wealth Trapped In Home Equity — And Wall Street Is Trying To Get Its Hands On As Much Of It As Possible originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
