Interactive Financial Model

Unlocking Liquidity Through Equity Securitization

A comprehensive framework for securitizing Homefund's Home Equity Agreement portfolio. Explore live financial models, timelines, and partner networks to understand how securitization can enhance ROE from 14-17% to over 45%.

45-63%
Post-Securitization ROE
$100M+
Target Deal Size
6.75-7.25%
Weighted Avg Cost of Capital
18-24
Months to Close

Interactive Financial Model

Adjust parameters to see real-time impact on Return on Equity (ROE) across unleveraged, warehouse, and securitization scenarios

How This Model Works

This calculator compares three financing scenarios for Homefund's Home Equity Agreement (HEA) portfolio. Adjust the parameters below to see how different leverage strategies impact your Return on Equity (ROE). Hover over any term with a icon for detailed definitions.

Model Parameters

$12.50M
15.50%
75.00%
8.75%
82.00%
7.00%

Unleveraged

No debt financing

$12.50M
$0.00M
$12.50M
95 homes
$1.94M
$0.00M
—
$1.94M
15.50%

Warehouse Facility

Phase 1: Revolving credit

$12.50M
$37.50M
$50.00M
379 homes
$7.75M
-$3.28M
+6.75%
Net Return$4.47M
ROE35.75%

Term Securitization

Phase 2: ABS offering

$12.50M
$56.94M
$69.44M
526 homes
$10.76M
-$3.99M
+8.50%
Net Return$6.78M
ROE54.22%

ROE Enhancement

From unleveraged to post-securitization

Improvement
+38.72%

Calculation Methodology

Debt Calculation:
Debt = (Equity ÷ (100 - LTV%)) × LTV%

Example: $12.5M equity at 75% LTV = $37.5M debt → $50M total originations

ROE Calculation:
ROE = (Net Return ÷ Equity) × 100

Net Return = HEA Returns - Interest Expense

Securitization Flow

From equity holdings to unlocked liquidity

Home Equity Agreement Securitization Process