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Point expands home equity investment origination via wholesale channel
The company said it has funded $2.5 billion in home equity investments and highlighted a $508.6 million rated securitization tied to the product.
Point is launching a wholesale channel to originate home equity investments through mortgage brokers, extending the company’s reach beyond its direct-to-consumer footprint, HousingWire reports. The California-based firm says the funded volume behind its home equity investments totals $2.5 billion, and it pointed to a recent $508.6 million rated securitization. Point also said it has served more than 25,000 homeowners since 2015.
Point is positioning the wholesale push as deliberate growth, not rapid volume, with Samuel Bjelac, head of wholesale, saying the next 12 to 18 months will focus on building the foundation for a scalable business, developing broker relationships, creating a partner experience, and executing consistently. The effort targets mortgage brokers serving clients who are home equity rich but reluctant or unable to take on new debt through options like cash-out refinancing or home equity lines of credit. Point pitches home equity investments as an additional option for those borrowers and says no monthly payments are required under the structure.
Under an HEI structure, a homeowner receives upfront cash in exchange for providing an investor a share of the home’s future value while keeping title, paying taxes, insurance, and maintenance. The investment is then settled at sale or the homeowner can buy back the investor’s stake within a defined term, and Point says part of the wholesale rollout will include training brokers on how the products are structured, disclosed, and repaid, according to HousingWire.