#United States #Tempe #Saluda Grade #Unlock Technologies #Home Equity Agreement

Unlock Technologies and Saluda Grade's Groundbreaking Securing Deal

Unlock Technologies, a pioneering financial technology company based in Tempe, Arizona, has recently accomplished a significant milestone by closing its largest home equity agreement (HEA) securitization to date. This landmark transaction, known as the Unlock HEA Trust 2025-2, was issued and sponsored by Saluda Grade and marks a substantial leap forward in providing homeowners access to the wealth they have built within their properties.

On November 14, 2025, Unlock successfully concluded this massive securitization effort, during which $303 million worth of home equity agreements were managed and originated. This was not just a routine transaction; it was remarkably oversubscribed, drawing attention from multiple first-time investors and resulting in total orders exceeding $1 billion.

Details of the Securitization

The structure of the HEA Trust 2025-2 was particularly noteworthy. It comprised multiple classes of securities: $167.7 million of senior Class A securities rated A(low), $47.8 million of mezzanine Class B securities rated BBB(low), $39.7 million of subordinate Class C securities rated BB, and $48.3 million of subordinate Class D, which were non-rated. This issuance holds significant implications as it signifies the rising familiarity with home equity agreements (HEAs) among institutional investors and the growing acceptance of this asset class.

Jim Riccitelli, CEO of Unlock Technologies, stated, "With each successful securitization, we’re proving the utility and value of our home equity agreement as an innovative financing solution for homeowners and an attractive investment opportunity for institutional players." The primary goal of these agreements is to facilitate easier and more affordable access to home equity for homeowners, without the burden of additional monthly payments.

Institutional Confidence and Industry Growth

Barclays Capital acted as the lead structurer for this successful deal while Jefferies LLC collaborated as the joint bookrunner. Texas Capital Securities and East West Markets participated as co-managers. The transaction builds on prior successful rated transactions for this asset class that began earlier in 2023, showcasing significant enhancement in execution and pricing owing to the confidence investors are placing in HEAs.

Timothy Carr, Chief Investment Officer of Saluda Grade, echoed Riccitelli’s sentiments, emphasizing the accomplished rating of A(low) for the senior class and the narrowest credit spreads to date. "This overwhelming positive response with over a billion in orders indicates that investors are acknowledging HEAs as a sustainable investment option that also provides homeowners with significant financial flexibility."

Home Equity Usage on the Rise

As the current economic environment leads to rising consumer debt and household expenses, homeowners are increasingly exploring home equity as a viable financing solution. A survey conducted and commissioned by Unlock revealed that a substantial 60% of homeowners feel more secure knowing they can leverage their home equity, which adds a much-needed layer of financial security during turbulent times.

Riccitelli concluded, "Home equity remains at near historic highs, reflecting homeowners’ awareness and willingness to utilize this asset for financial security."

The implications of such a grand-scale securitization are crucial for both consumers and investors. As more homeowners seek innovative solutions to manage their finances, Unlock Technologies is at the forefront of this revolution, providing pragmatic options to facilitate the leveraging of home equity efficiently and effectively.

About Unlock Technologies

Founded in 2020, Unlock Technologies aims to address the financial needs of homeowners by offering flexible products and services that enable them to plan for their envisioned futures. The company’s flagship product, the home equity agreement, serves as a clear financing tool aimed at homeowners seeking access to their home's equity sans monthly payments.

In summary, with the successful closure of the Unlock HEA Trust 2025-2, Unlock Technologies and Saluda Grade not only set a new record in home equity agreement securitization but also made significant strides towards comforting homeowners while presenting investors with a sound opportunity.