Kiavi is sponsoring a $158 million securitization of loans that finance home renovations and relisting for sale, or what the industry calls residential transition loans.
The private transaction, LHOME 2022 - RTL3, is a 12-month, term revolving securitization deal and expands the company's funding capacity in this area of business. It is also the eleventh broadly syndicated securitization transaction from Kiavi under its LHOME shelf program, which the company launched in 2019, according to the company.
Nomura Securities International and Barclays capital collaborated as joint book runners and co-lead managers, on the deal, which raised the funding through three tranches of notes--classes A-1, A-2 and M, Arvind Mohan, Kiavi's chief operating officer said in an emailed statement. Nomura acted as the structuring agent.
The deal might be one sign that mortgage lenders can still find ways to make deals, even as the traditional mortgage market contracts.
"Rising yields have created an opportunity to introduce the RTL asset class to new securitization investors that were previously priced out of the market," according to a statement from.
The company did not release pricing information about the notes.
Kiavi has funded $4.4 billion in loan volume to more than 5,600 customers in 2022 alone. Since its inception in 2013, the company has funded more than $12.3 billion in volume.
