Home Equity Securities LLC (HES) has created a consumer finance innovation to augment debt-only home financing – the home equity fractional interest security (HEFI^©). The HEFI security allows homeowners to release fractional equity stakes in their homes while retaining the benefits of home ownership.

HES has created the operational methodologies and the product structure to support an accelerated commercial launch of this marketplace. The HEFI program is exclusive to HES as a result of Patent #7,516,099, entitled "Method for Managing a Home Equity Sales Program," issued to Home Equity Securities LLC in April 2009 by the US Patent & Trademark Office. If you are interested in receiving further information about the HEFI program and HES, please contact John O'Brien at obrien@haas.berkeley.edu.

For existing homeowners with adequate equity, the funds generated from the HEFI security sale could be used for asset diversification, home improvements, credit card debt repayments, education for children and grandchildren, other early bequeathals, or to augment income in retirement. This would be accomplished without adding to their debt and debt financing burden.

For new homeowners and developers, the HEFI security would facilitate financing support by a passive equity co-investor and thereby reduce the overall cost of a new home purchase.

For distressed homeowners, the proceeds from the HEFI security would be used for partial satisfaction of an existing lien, or consideration for forbearance or mortgage restructuring by an existing lender, and thus avoid foreclosure.

The HEFI is a stand-alone, standardized and scalable security. The HEFIs would be pooled to offer investors passive equity exposure to the US single family, owner occupied residential market.  These pooled HEFIs would be freely tradable in the capital markets without any further involvement of the original homeowner or mortgage holder.