The Fintech company that uses AI and machine learning techniques to transform the underwriting process has been carrying out a second securitization since June 2021, led by Cantor Fitzgerald; and closes $13 million Series A funding used to spend R&D and operations
Reigo Investments, a global financial real estate technology company using data science and artificial intelligence (AI) to reshape the residential real estate debt market, announced today that it has closed a $100 million loan securitization residential relay led by Cantor Fitzgerald. The transaction marks the company’s second securitization completed since June 2021 – a figure it has now doubled to $200 million. Reigo also announced today the closing of a $13 million Series A funding round led by Caesarea Medical Inc., a strategic fintech, insurance and private equity investor. The funding will be used to fund Reigo’s continued expansion in the United States and further invest in research and development of its platform.
“Cantor Fitzgerald is delighted that Reigo was able to increase its inaugural securitization,” said Deirdre Harrington, Senior Managing Director of Cantor Fitzgerald. “We and their investors continue to have confidence in their cutting-edge technology. We are excited to see Reigo’s future growth and believe it will have a positive impact on both the residential transaction lending industry ( RTL) as well as expansion into other sectors.”
It is the first-ever securitization in the short-term real estate debt market to include, as part of its investment policy, the AI-based “Reigo score” criteria, thus recognizing the importance technology to reduce default rates and optimize risk-adjusted return for investors. The securitization has a renewable period of 24 months, after which the transaction will begin to amortize. The loan pool consists of loans for business purposes, 100% management positions with a term of 6 to 24 months. The finalization of this agreement allows Reigo to increase the maximum loan amount granted for single-family (SFR), multi-family, mixed-use and single-storey residential properties.
According to recent search by Realtor.com, the United States is now short of 5.24 million homes. However, despite the housing market expected to remain very competitive for buyers in 2022 amid tight supply, the mortgage industry expects lower trading gains. To keep lenders competitive, the need for flexible lending options has been a major driver of the success of Reigo’s platform.
Yariv Omer, CEO and Co-Founder of Reigo Investments, said: “The way real estate underwriting is done hasn’t been updated in years and is based on a limited number of parameters managed in old sheets. of Excel calculation. The lending community has realized these archaic systems are not capable of allowing them to reach their full potential. With our AI-powered platform, we strive to help lenders avoid non-performing loans, to make faster investment decisions and create ultra-diversified portfolios across the United States to stand out among their borrowers. »
With a top-notch mortgage professional team combined with its in-house technology development team, Reigo has perfected its machine learning algorithms based on data collected from hundreds of sources that assess, evaluate and select the best loans. Today, its algorithm-based approach is redefining the entire underwriting experience by dramatically reducing non-performing loans, reducing 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 offered by the lenders. Since 2019, the company has participated in more than 850 loans. Reigo was founded in 2018 by seasoned 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
Cantor Fitzgerald, with more than 12,000 employees, is a leading global financial services group at the forefront of financial and technology innovation and has been a proven and resilient leader for over 70 years. Cantor Fitzgerald & Co. is a leading investment bank serving more than 5,000 institutional clients worldwide, recognized for its strengths in the fixed income and equity markets, investment banking , SPAC underwriting and PIPE investments, prime brokerage and commercial real estate on its global distribution platform. Cantor Fitzgerald & Co. is one of 24 primary dealers that transact with the Federal Reserve Bank of New York. For more information, please visit: www.cantor.com.