Currently Homium is available only to qualified institutional buyers of securities.
The Homium asset is a limited liability company share in a special purpose vehicle that holds undivided interests in a pool of shared appreciation notes, which are marked-to-market monthly, and are tradable to peer institutions under Rule 144A. Homium pools SANs dynamically by state, issuing and redeeming shares as a type of open-ended fund.
All Homium loans are repaid upon a home’s sale or refinance event at the sum of a) the % shared appreciation secured and b) principal. Homium shares do not pay interest. Investors capture appreciation by tendering shares at quarterly tender offers at the published NAV.
During the term of each loan, the estimated payoff of the loan is used to calculate the net asset value of the pool. This estimate is calculated by applying the Case Shiller index for each loan’s locality and tier on a monthly basis, which is superseded by the actual payoff at maturity.
Homium loans have a 49% LTV and 80% max combined LTV (1st mortgage + Homium 2nd), require a current QM and amortizing 1st mortgage. Home values are determined by a qualified appraisal by a third party hybrid appraisal management company. In the unlikely event of a default, Homium maintains full rights under its Deed of Trust to recover the indebtedness.
No. Homium is a fully compliant private placement of a Rule 144A debt security. Homium uses distributed ledger technology and our state-of-the-art loan origination platform to provide radical transparency to investors and regulators from the inception of each and every loan. Our tokenized security format adds simple settlement and auditability for investors regardless of their orientation to digital assets, and future-proofs our security so that it can interoperate with the financial markets of the future.
Homium’s use of patented technology gives Homium investors a real time window into every loan in each pool including its origination value and current marked-to-market estimated value. Because Homium loans are underwritten to a uniform standard that secures a % of the underlying home equity, this allows instant securitization of the note from inception. Investors receive pooled exposure to home price appreciation by state and can continuously monitor the pool’s data at a loan-by-loan level.
