Unison, a company that specializes in home equity investments, just wrapped up a major securitization deal that packaged $235 million worth of home equity agreements. According to HousingWire, this is the eighth securitization Unison has completed, and it went through their Midgard Fund with Barclays handling the lead banking role. The deal also received a formal credit rating from DBRS Morningstar, which gives institutional investors more confidence in the product.
The Midgard Fund itself has been operating since 2019 and has built up quite a portfolio. HousingWire reports that the fund now has over 5,700 agreements spread across 33 states plus Washington D.C., covering a wide range of metro areas. These aren't random properties either, the company says their typical homeowners have average home values above $500,000 and carry prime credit profiles, so they're working with a pretty solid borrower base.
What's interesting here is how the securitization market for home equity investments has matured over the last few years. The Midgard Fund alone has done six securitizations since 2022, with four of them getting formal ratings. The executive team at Unison sees this as validation that institutional investors are becoming more comfortable with home equity investments as a legitimate asset class to own and trade.
What I am seeing locally is that tools like home equity investments are becoming more relevant as homeowners in the Bay Area and East Bay hold onto properties that have appreciated significantly. For sellers thinking about their options, and for buyers trying to access funds for a down payment, these kinds of products represent another way to work with the equity that's already in your home. It's still a specialized strategy, but the fact that major financial institutions are securitizing these deals suggests the infrastructure around them is only going to get stronger and more accessible over time.
