Transaction is part of its strategic partnership with CrossCountry Mortgage
Hildene Capital Management has issued a $318.4 million securitization backed by non-qualified residential mortgage loans originated by CrossCountry Mortgage (CCM).
The non-QM deal involves a pool of 630 residential mortgages with a weighted average FICO of 738 and 70.6% loan-to-value. The majority of these loans are secured by owner-occupied properties, according to Hildene’s news release.
Rating agency Fitch has given the securitization’s senior investment grade bonds AAA-BBB. Kroll rated both investment grade and non-investment grade bonds down to BB. The securitization was structured by Goldman Sachs, with Atlas SP Partners serving as joint lead and Piper Sandler and Nomura as co-managers.
“The close of our latest CROSS securitization underscores the opportunity we continue to see in the non-QM market,” said Justin Gregory, portfolio manager for Hildene. “We look forward to continuing our relationship with CrossCountry Mortgage this year to scale our securitizations in an effort to deliver quality risk-adjusted returns for our clients.”
This transaction marks Hildene’s first non-QM securitization of the year, following the successful launches in 2023. These ongoing efforts are part of a strategic multi-year relationship initiated in 2022 between Hildene and CCM, granting Hildene exclusive access to a pool of non-QM loans from CCM’s platform. The companies will continue their partnership and issue deals throughout 2024.
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