A $100 million revolving credit facility provided to a fintech by a group led by Texas Capital Bank will finance home-equity agreements. It’s at least the second such line secured in the HEA space this year.
Unlock Technologies Inc. and Saluda Grade secured the $100 million facility from the group led by Texas Capital, a news release Wednesday said.
“This credit facility enables both Saluda Grade and Unlock to grow their platforms and meet demand from investors,” Daniel Hoverman, head of corporate and investment banking at Texas Capital, was quoted as saying.
Unlock said that it selected Texas Capital for its warehouse financing expertise and its ability to structure and support Saluda Grade-issued Unlock HEA securitizations.
According to the statement, the revolving credit facility will provide Saluda Grade with additional capital to purchase HEAs contracts.
Unlock CEO and Co-Founder Jim Riccitelli said in the press release that the New York-based firm “is the industry’s fastest-growing shared equity platform.”
He added, “Since our founding in 2020, we’ve built a next-generation product and helped more than 4,500 homeowners tap into their home equity. We were the first HEA company to increase home equity access for consumers who had less-than-perfect credit or had debt-to-income constraints.”
In February, Unlock and Saluda jointly announced that a $300 million revolving credit facility was secured with Barclays bank PLC.
A year ago, Unlock announced a $180 million RMBS transaction backed by HEAs.
Saluda Grade CEO Ryan Craft reported in today’s announcement that they are continuing to see unparalleled excitement around HEAs and shared-equity products from both consumers and investors.
“Unlock’s HEA provides a streamlined approach to accessing home equity in an uncertain economy where consumers continue to grapple with high interest rates and limited availability of mortgage products,” he said.