Company joins Unlock Technologies for historic move in home equity investment space

IRVING, Texas, Oct. 13, 2023 /PRNewswire/ — BSI Financial Services, a mortgage operating platform, has been selected by Unlock Technologies (Unlock) as the backup asset manager for the recently closed Unlock HEA Trust 2023-1 securitization, the industry’s first rated securitization of home equity agreements (HEAs). The $224 million securitization consists of Class A and B notes with ratings of BBB (low) and BB (low) from DBRS Morningstar, which finalized its ratings criteria for the HEA asset class earlier this year.

BSI is now working as the primary or backup servicer for four of the top five providers in the burgeoning home equity investment (HEI) market. BSI Financial currently manages the assets for 11,000 HEAs with an aggregate contract balance exceeding $1 billion.

According to a recent report by TransUnion there is $22.1 trillion of tappable home equity in today’s market, but homeowners with a sub-620 FICO score, have limited access to traditional mortgage products. Unlock’s HEA enables lower FICO homeowners to access a portion of their home’s equity without having to take out a loan or having additional monthly payments. Homeowners typically use HEA funds to pay off high interest consumer debt like credit cards or to fund home remodels or college tuition.

“BSI Financial is thrilled to be a part of this industry first,” said Allen Price, Senior Vice President of BSI Financial Services. “Over the past year, our unparalleled service and technological capabilities are quickly making us the go-to servicer in the HEI market. Teaming up with Unlock affirms our ongoing commitment to innovation and excellence in this growing space, and we look forward to a long and productive relationship.”

“BSI Financial’s experience in HEI asset management was one of the reasons why Unlock chose the company as our backup servicer,” said Brian Elbogen, Chief Investment Officer at Unlock. “Having BSI as part of our servicing strategy allows us to focus on pioneering new and better ways to help everyday Americans to tackle their financial challenges without accumulating more debt.”

With decades of experience in asset management, BSI Financial brings a track record of technology innovation to bear on HEI asset management. The company offers a proprietary, customizable servicing platform for HEI products that includes automated lien monitoring, the ability to calculate maximum cash disbursements, 24/7 portfolio visibility and a dedicated account manager. BSI Financial’s approach to HEI assets is focused on file quality, compliance, and portfolio sustainability, all while leveraging automation to achieve top-tier performance.

About Unlock Technologies
Founded in 2020, Unlock Technologies is a financial technology company providing products and services that help consumers solve financial challenges and improve their financial health. The company’s flagship product is its home equity agreement, a financing option for homeowners who want to access the equity they have built in their homes without taking out a loan. For more information, visit www.unlock.com.

About BSI Financial Services
BSI Financial Services is leading the evolution of mortgage servicing for originators, investors and homeowners. The company brings together a talented team with long mortgage industry expertise, scalable digital capabilities and deep regulatory understanding. BSI Financial is one of the fastest growing mortgage servicers across the industry and currently services more than $50 billion in mortgages. The company is approved as a servicer by Fannie Mae, Freddie Mac, FHA and VA, approved as an issuer by Ginnie Mae, and rated by S&P, Fitch and DBRS as a servicer. For more information, visit www.bsifinancial.com.

Press Contact for BSI Financial:
Mike Murray
Strategic Vantage Marketing & Public Relations
240.498.0863
[email protected]

Press Contact for Unlock Technologies:
Michael Micheletti
Chief Marketing Officer
[email protected]  

SOURCE BSI Financial Services