Point Closes $508.6M HEI Securitization, Largest to Date

Point announced the completion of a $508.6 million rated securitization backed by home equity investment (HEI) assets on Thursday, marking the largest transaction in the HEI market to date. This securitization, which closed on July 15, 2026, is Point's eighth rated securitization and its second of the year. The offering saw participation from over 30 institutional investors, including eight new investors to Point's platform, indicating a growing institutional demand for HEI-backed securities. Point reported a significant decrease in funding costs compared to its previous securitization in February 2026, with spreads on the BB (low) (sf) bonds narrowing by more than 220 basis points.

Eddie Lim, co-founder and CEO of Point, stated that the successful closing of this landmark securitization underscores the investment community's confidence in the HEI asset class and the quality of assets Point originates. He highlighted Point's role in pioneering the HEI category in 2015 and its efforts with partners to establish a durable, institutional-quality capital markets platform. This platform enables Point to access capital at scale, improve market liquidity and transparency, 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 comprised $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 collateral for this securitization was contributed by eight purchasers on Point’s platform, including Tacora Capital Management and Deer Park Road Management. Point originated all the HEIs included in the transaction and will continue to service these assets.