A pool of home equity investment (HEI) agreements will support $225.5 million in securitized bonds, coming to market through issuer Point Securitization Trust, series 2025-1.
Point Digital Finance is sponsoring the deal, which is secured by 2,141 first, second, and third liens on residential properties, which it originated, according to Morningstar DBRS, and that it will service them.
Barclays, Nomura, Citigroup, East West Markets and Cantor Fitzgerald are initial purchasers and managers on the deal.
The deal will issue the notes through four tranches of class A and B notes. They will repay noteholders sequentially and through a senior-subordinate structure. All the notes have a stated maturity date of June 2055, DBRS said. The rating agency also said it did not find any material concerns about the deal in its review of the documents.
In terms of risks of default in PNT 2025-1, DBRS notes that the biggest drivers are the current HEI thickness and the cumulative loan-to-value (CLTV) ratio, which are a function of the HPI projections.
All the contracts in the asset pool were originated between 2021 and 2025. Most of the contracts, 1,750 (81.64%), are second-lien as of the cut-off date. Also, 263 (11.37%) are first-lien and 128 (6.9%) are third-lien, the rating agency said.
Overall, the deal's entire HEI weighted average (WA) percentage is 55.91%, the rating agency said. Also, on an unadjusted basis, the pool had a loan-to-value (LTV) ratio of the pool of 34.94%.
The plurality of the contracts were originated on properties in California (30.34%), while Florida and New York account for 13.86% and 7.22%, respectively.
DBRS assigns ratings of A to the A1 notes; BBB to the A2 notes; BB to the B1 notes and B to the B2 notes.
