Kiavi Finalizes $271M Revolving Mortgage Backed Securitization

Kiavi Funding, Inc., a provider of financing to real estate investors (REIs), announced it has closed a $271 million revolving securitization of “unrated residential transition loans.”

This is the eighth broadly syndicated securitization transaction supported by Kiavi “since it began its sponsored revolver securitization program in 2019.”

As mentioned in an update shared with CI, the deal includes “a two-year revolving period during which principal payoffs can be reinvested in newly originated loans.” The money will provide capital “to support approximately $750 million in loan originations over the life of the deal.”

Arvind Mohan, Kiavi’s chief operating officer, stated:

“Kiavi is very pleased with the outcome of our latest financing, especially in executing our first residual sale. Executing in today’s market environment demonstrates our investors’ continued confidence in our product and performance. ”

This was the first deal in which Kiavi “sold its residual interest, and Kiavi’s first deconsolidated deal given the sale of residual interest.”

In most deals, “the bottom 5% is retained by the sponsor as part of the transaction, but in this deal, Kiavi sold 95% of the bottom residual class to an institutional investor.”

This demonstrates “the strength of Kiavi’s underlying collateral and desire for investors to be more involved in its asset class and securitizations.”

As noted in the announcement, Kiavi has “rapidly become one of the top destinations for real estate investors who are looking to buy, renovate and sell or rent a home.”

The company’s success “is rooted in its ability to partner with real estate investors and to apply data analytics to assess risk.” The combination of capital markets execution and the operational scale and efficiency that Kiavi’s platform enables “allows the company to provide real estate investor customers strong pricing and the ability to scale.”

Barclays Capital Inc. was “the sole structuring agent of this securitization. Barclays, Nomura Securities International, Inc. and Performance Trust Capital Partners, LLC were joint bookrunners and co-lead managers.”

Kiavi uses “the power of data and technology to bring lending for real estate investors into the digital age.”

Through Kiavi’s digital platform, real estate investors are empowered “to make smarter decisions, gain access to funding faster, and scale their business.”

Founded in 2013 Kiavi, formerly known as LendingHome, has “grown to become one of the largest lenders to real estate investors in the United States.”

The company “is committed to helping customers revitalize approximately $25 trillion worth of aged U.S. housing stock and provide move-in-ready homes and rental housing for millions of Americans across the country.”

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