Reigo doubles securitization to $200 million in residential bridge loans
Join us on Wall Street StreetInsider Premium. Claim your 1 week free trial here.
Fintech Using AI And Machine Learning Techniques To Transform Underwriting Process Achieves Second Securitization Since June 2021, Led By Cantor Fitzgerald; and completes $13 million in Series A funding for research and development and operations expenditures
TEL AVIV, Israel–(BUSINESS WIRE)–
Reigo Investments, a global financial real estate technology company using data science and artificial intelligence (AI) to reshape the home mortgage lending market, today announced it has completed the $100 million residential bridge loan securitization led by Cantor Fitzgerald has completed. The transaction is the company’s second securitization since June 2021 — a number that has now doubled to $200 million. Reigo also announced today that it has closed a $13 million Series A funding round led by Caesarea Medical Inc., a strategic investor in the fintech, insurance and private equity sectors. The funding will be used to fund Reigo’s continued US expansion and further research and development investments in its platform.
“Cantor Fitzgerald is excited that Reigo has been able to tap their first securitization,” said Deirdre Harrington, senior managing director at Cantor Fitzgerald. “We and their investors continue to have confidence in their cutting-edge technology. We are excited about Reigo’s future growth and believe it will have a positive impact both in the residential real estate transactional lending (RTL) space and as it expands into other sectors.”
This is the first securitization in the short-term real estate bond market to include the AI-based “Reigo-Score” criteria as part of its investment policy, recognizing the importance of technology to reduce default rates and optimize risk-adjusted returns for investors. The securitization has a 24-month revolving period, after which the transaction begins to amortize. The loan pool consists of business purpose loans, 100 percent senior positions with a term of 6 to 24 months. Closing this deal allows Reigo to increase the maximum loan amount for single-family homes (SFRs), multi-family homes, mixed-use properties, and building lots.
Accordingly recent research through Immobilienmakler.com, the US is now short of 5.24 million homes. Despite this supply shortage, the housing market is likely to remain highly competitive for buyers in 2022 The mortgage industry expects lower business profits. To keep lenders competitive, the need for flexible lending options has been a key factor in the success of Reigo’s platform.
Yariv Omer, CEO and co-founder of Reigo Investments, commented: “The way real estate underwriting is done has not been updated for years and is based on a limited set of parameters managed in old Excel spreadsheets. The lender community has realized that these archaic schemes are unable to push them to their full potential. With our AI-powered platform, we are focused on helping lenders avoid non-performing loans, make investment decisions faster, and create extremely diverse portfolios in the US to differentiate themselves from their borrowers.”
With a world-class professional real estate lending team combined with an in-house technology development team, Reigo has perfected its machine learning algorithms based on data from hundreds of sources that score, rank and select the best loans. Today, his algorithm-based approach is redefining the entire underwriting experience, dramatically reducing non-performing loans, cutting underwriting time from days to hours, and increasing portfolio diversification.
Reigo is a technology-driven investment manager focused on the real estate bridging loan market. The company uses AI in the underwriting process to enable fast and safe investment decisions within 24 hours. Reigo partners with private real estate lenders in the United States to purchase and participate in residential real estate investment loans originated by the lenders. Since 2019, the company has participated in over 850 loans. Reigo was founded in 2018 by experienced real estate and technology professionals with offices in New York and Tel Aviv.
For more information, please visit https://reigo-inv.com/.
About Cantor Fitzgerald
With more than 12,000 employees, Cantor Fitzgerald is a leading global financial services group at the forefront of financial and technology innovation and a proven and resilient leader for over 70 years. Cantor Fitzgerald & Co. is a premier investment bank serving more than 5,000 institutional clients worldwide and is recognized for its strengths in the fixed income and equity markets, investment banking, SPAC underwriting and PIPE placements, prime brokerage and commercial real estate global distribution platform. Cantor Fitzgerald & Co. is one of 24 primary dealers doing business with the Federal Reserve Bank of New York. For more information, please visit: www.cantor.com.
Founder, Oliveira House PR (OHPR)
E: [email protected]
Source: Reigo Investments