Reigo Doubles Securitization of AI-Powered Bridge Loans to $200M

Reigo Investments announced an additional $100 million securitization of residential bridge loans, led as in June 2021 by Cantor Fitzgerald. Additionally, the company closed a $13 million Series A funding round for additional R&D as well as expansion in the United States. Leading the round was Caesarea Medical, which invests in the fintech, insurance and private equity sectors.

“The securitization has a renewable period of 24 months, after which the transaction will begin to amortize,” Reigo explained in a press release. “The loan pool consists of loans for commercial purposes, 100% for management positions with a duration 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. “

“When we launched Reigo three and a half years ago, we wanted to take data science and real estate and create value,” Yariv Omer, co-founder and CEO, told last year.

Reigo combines machine learning and big data, as is done similarly in many industries, and in this case analyzes past lending decisions to create predictive systems. Institutional investors in Israel and the United States work with the firm to identify hundreds of metrics, then correlate them with previously issued loans to see default risks and whether investor funds would be returned.

“I like to ask the question, when was the last time you changed your Excel template?” Omer told last year. “The answer has always been never. The usual answer is that even if they want it, they don’t know how to test it. Almost every day we test a new model to see if it is better or not. The idea is to make “small incremental steps on a monthly basis” and improve the overall approach.

In theory, machine learning can integrate new information and redirect algorithms to more efficient use, although this depends on the quality of the data and previous decisions.

“If you just look from a portfolio risk perspective at what’s happened in the market versus what’s happened with us, we started out with a much lower non-performance rate,” Omer said. “We already had a non-performing loan rate well below the market. We managed to maintain the same low non-execution rate during Covid. »

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