Currently Homium is available only to qualified institutional buyers of securities.
The Homium investment instrument is a privately offered, digital security or token that is backed by a dynamic pool of Homium shared appreciation mortgage loans. The issuing entity is a pass-through limited liability company that owns and maintains the loan pool, issuing and redeeming shares much like an open-ended fund. Homium provides monthly valuations for the tokens based on individual valuations each month of all loans in the pool using industry housing price data for the relevant geographic areas. Homium tokens are tradable among qualified institutional investors under Rule144A.
The Homium token is an interest in an investment vehicle whose sole assets are a pool of shared appreciation mortgage loans and cash generated by periodic payoffs of those loans. Homium loans must be repaid upon a sale or refinance of the home or at the stated 30-year maturity. Borrowers owe repayment of the principal amount borrowed plus a pro rata share of any price appreciation in the value of the home as determined by a sale price or appraisal. Each month, Homium calculates an estimated payoff for every loan in the pool by applying Case Shiller housing value index data for each loan’s locality and price tier. These estimated payoff calculations are aggregated to calculate the net asset value of the pool and the resulting value of the Homium token. When loans actually payoff based on a sale price or appraisal value, that amount supersedes the estimated payoff value. Cash generated by loan payoffs is used to offer investors quarterly liquidity via a tender process and any cash remaining will be used to purchase new loans for the pool. Accordingly, the value of the Homium token reflects the home value performance of the loan pool.
No. Homium tokens are privately placed, digital securities that are backed by real world assets – a dynamic pool of shared appreciation mortgage loans. Token ownership is recorded on the blockchain and maintained by an SEC licensed digital asset transfer agent, Securitize LLC.
Homium’s use of patented technology gives Homium investors a real time window into every loan in each pool including its origination value and current marked-to-market estimated value. Because Homium loans are underwritten to a uniform standard that secures a % of the underlying home equity, this allows instant securitization of the note from inception. Investors receive pooled exposure to home price appreciation and can continuously monitor the pool’s data at a loan-by-loan level.
