Home equity investment products set to soar, experts say

A “perfect storm” is paving the way for growth in home equity investment contracts, with originations and secondary market activity both on the upswing for the emerging asset class, industry leaders said this week.  

Tailwinds behind the product gives reason for optimism, according to Mark Ginsberg, an expert in securitized products originations at Barclays Investment Bank. 

“Rates remain elevated. Equity in homes keeps growing. Homeowners need a way to access that. There’s some channels available to everybody. There’s way more demand moving around from homeowners than institutional capital is ready to meet. That’s just a great perfect storm,” he said at a Morningstar DBRS home equity investment panel in New York on Wednesday.

HEI products, sometimes referred to as shared-appreciation…