“HOME is not trying to create demand for residential credit from scratch,” Moro said. “It is taking an asset class that already has substantial institutional demand and making that exposure available through a more accessible onchain structure.”
The underlying market is also expanding. U.S. HELOC balances rose by $13 billion in the second quarter, their 17th consecutive quarterly increase, according to the New York Fed.
For non-U.S. users only
HOME will be available only to eligible non-U.S. users. The U.K., Hong Kong, China, British Virgin Islands and sanctioned jurisdictions are also excluded, Moro said. NUVA will enforce the restrictions through wallet screening and IP address blocking.
HOME’s first portfolio will target HELOCs with an average FICO score — a credit score created by Fair Isaac Corporation — of at least 735, a combined loan-to-value of no more than 69%, and a debt-to-income ratio of no more than 40%, Moro…
