North America Residential Real Estate-Backed Credit Card Senior Secured Term Notes Token

Overview

The Company provides credit cards, revolving lines, and installment loans to primarily prime and super-prime customers secured primarily by second liens on single family residential real estate. Seeking to compete with traditional HELOCs and HELOANs by delivering the product through a credit card offering, the Company provides a faster and more efficient, lower cost option for consumers looking to access capital to either purchase a new property, pursue home repairs, or consolidate high interest debt. In comparison to a traditional HELOC underwriting process, which usually takes 30 – 45 days before customer approval, the Company approves 40% of accounts within 15 minutes and 75% in the first 3 days. While superprime US unsecured credit cards tend to have average balances of several thousand dollars, the Company’s secured card balances have an average of ~$30,000, enabling the Company to earn higher interest revenue per customer. The product first launched in California in 2021, quickly ramping to a portfolio of $28 million by year-end 2021, $383 million by December 2022 across 32 states, and $525 million across 35+ states as of June 2023. In comparison to recent traditional HELOC securitizations, the Originator’s Facility benefits from wider pricing and tighter covenants, and also benefits from a floating interest rate with a base rate floor, whereas the recent comparable securitizations have had fixed rates below the Originator’s floor return.