Quick take:
- The loans are currently available in Colorado but there are plans to expand to more states.
- Homeowners can secure a loan on the Homium’s securitisation platform by committing a portion of their home’s price appreciation.
- Financiers receive a tokenised asset that tracks the price appreciation of a pool of securitised price appreciations for home loans.
Homium has launched its real-estate equity mortgage lending and securitisation platform on Avalanche. The launch was accompanied by an announcement of a $10 million Series A round co-led by Sorenson Impact Group and Avalanche’s Blizzard Fund.
Homium is pouncing on a rapidly emerging industry of tokenising real-world assets, which some reports are predicting it could hit $10 trillion by 2030. In Homium’s case, the company will be tokenising home equity loans, where homeowners secure loans by committing a portion of their home’s price appreciation.
On the other hand, investors (fanciers of the loan) receive a tokenised asset that tracks the price appreciation of a pool of securitised price appreciations for home loans.
Homium said its home loan securitisation platform is currently live in Colorado, but there are plans to expand to more states.
The platform connects homeowners with institutional investors helping them unlock trapped home equity “on fair and transparent terms.” According to the company’s website, its platform offers a shared appreciation home equity loan with no interest or monthly payments.
Commenting on the announcement, Tommy Mercein, CEO of Homium said: “Homium is building a valuable new asset class for institutional investors, providing a new source of uncorrelated, inflation-protected return in their core portfolios.”
According to Pitchbook, Homium previously raised $2.4 million in an early-stage venture round announced in March 2019. It also secured an undisclosed seed round in August 2020.
Morgan Krupetsky, Senior Director of BD Institutions and Capital Markets at Ava Labs said in a statement: “Homium is building a valuable new asset class for institutional investors, providing a new source of uncorrelated, inflation-protected return in their core portfolios. For the first time, institutions can invest side-by-side with homeowners, doing well and while doing good.”
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