The transaction was backed by the company’s flagship community mortgages
The Change Company has issued a $307 million securitization deal exclusively backed by its proprietary community mortgages.
The California-based company said the $307 million issuance has 16 unique RMBS investors, including money managers, banks, insurance companies, and private funds. Loans in the deal have a weighted average FICO of 740, LTV of 71.1%, 43 months of reserves, and an 8.72% note rate.
The transaction marked the seventh securitization of its proprietary community mortgages and the first to earn a AAA rating from DBRS Morningstar, according to its news release.
“Receiving our first AAA rating on a securitization comprised solely of our proprietary Community Mortgage is an important milestone for Change,” said Jesse Elhai, managing director of capital markets. “We appreciate DBRS Morningstar and our investors for recognizing and rewarding the strong credit underwriting and performance of our community mortgage securitizations.”
Read more: The Change Company expands as others shrink
Change Lending president Jason Biegel commented: “We are excited to close this ground-breaking RMBS securitization that recognizes the prime credit profile of the borrowers accessing our community mortgage program. The ‘AAA’ rating enables us to better serve our borrowers fairly and responsibly. Change Lending thanks its investors and looks forward to continuing to deliver quality investments to the mortgage investment marketplace.”
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