A New Category in Housing Finance
Research-driven mortgage solutions designed to improve affordability, expand access to sustainable homeownership, reduce mortgage credit risk, and create long-term economic value for homeowners. Home Diversification combines innovative lending products with the Home Secure protection framework to create a new category within housing finance.
Home Diversification is a housing-finance platform designed to improve affordability, expand access to sustainable homeownership, reduce mortgage credit risk, and create substantial economic value for homeowners.
The platform combines innovative lending products with the Home Secure protection framework to create a new category within housing finance by applying research-driven diversification principles to residential real estate.
Improve Affordability
Create responsible financing solutions that help more households achieve sustainable homeownership while supporting long-term financial stability.
Expand Homeownership
Increase access to sustainable homeownership through innovative lending products that maintain responsible underwriting standards.
Reduce Mortgage Credit Risk
Apply research-based diversification principles designed to lower modeled mortgage credit risk for homeowners and lending partners.
Why the Housing Market Needs a New Approach
Today’s housing market presents significant challenges for homeowners, lenders, and the broader housing finance industry. Home Diversification was created to address these challenges through research-driven solutions that improve affordability, reduce mortgage credit risk, and expand access to sustainable homeownership.
Housing Affordability
Rising home prices and increasing borrowing costs continue to make homeownership more difficult for many households. Improving affordability remains one of the most important challenges facing today’s housing market.
Many prospective homeowners struggle to save enough for a traditional down payment, delaying access to homeownership and limiting housing opportunities.
Lenders continue to seek safe, research-based solutions that responsibly expand access to homeownership while maintaining strong credit performance.
Community Reinvestment Act (CRA) initiatives and broader financial inclusion efforts remain important priorities for financial institutions seeking to serve more communities responsibly.
Home Diversification applies research-driven diversification principles to improve mortgage performance while expanding access to sustainable homeownership.Historical modeling indicates substantially lower lifetime expected credit losses compared with conventional prime first mortgages, even while supporting innovative lending structures.
| Structure | Down Payment | Annual Credit Loss | vs. Conventional |
|---|---|---|---|
| Price-Diversified — Base | 0% | 5 bps | -83% |
| Price-Diversified — Base | 3% | 3 bps | -90% |
| Price-Diversified — GFC Stress | 0% | 25 bps | -14% |
| Conventional Prime or Baseline | Avg. | 29 bps | — |
- Zero down payment
- No PMI
- Monthly payment
- potentially below FHA
- Includes all Home Secure benefits
- Home Value Protection
- Approximately 75% reduction in individual home-price volatility
- Reduced risk of negative equity
- Greater housing mobility
- Estimated homeowner value of approximately 10–15% of home value
- Retain ownership and future appreciation potential
- Modeled lifetime expected loss of approximately 6 basis points
- Compared with approximately 30 basis points for prime first mortgages
- Expands affordability
- Supports safe expansion of homeownership
- Strong CRA alignment
- Increased origination volume
- Product differentiation
- Potential secondary-market appeal
- Responsible access for underserved borrowers
Home Secure allows homeowners to exchange the performance of their individual home for the performance of a diversified pool of homes. Homeowners whose homes outperform the pool contribute a portion of their excess performance, while homeowners whose homes underperform the pool receive compensation from the pool. As a result, all participants receive the return of the diversified housing pool while substantially reducing individual home-price volatility and the risk of severe localized housing declines. This diversification helps improve homeowner resilience and reduce mortgage credit risk.
- Banks
- Credit unions
- CRA lenders
- Mortgage lenders
- CUSOs
- Insurance companies
- Employers
- Wealth advisors
- National financial platforms
- Institutional loan purchasers
- Secondary-market investors
Home Diversification seeks to create a new housing-finance category that safely expands homeownership, reduces housing risk at scale, improves affordability, and creates value for homeowners, lenders, investors, and distribution partners.
