The Change Company Issues its First AAA Rated Securitization Backed Exclusively by its Proprietary Community Mortgages

June 14, 2023

Originally published by BusinessWire
  • Securitization was comprised entirely of mortgage loans originated by Change Lending, a Community Development Financial Institution (CDFI) certified by the United States Department of the Treasury CDFI Fund.
  • DBRS Morningstar rated the senior A1 class as AAA and the A2 class as AA, while Fitch Rating rated the A3 through B2 along with DBRS. Both rating agencies cited the demonstrated performance history on prior Change Company CDFI issuances being in line with the broader NQM market as rational for their assigned rating.
  • The loan collateral for the deal included $307 million of loans with a weighted average 8.72% coupon, 740 FICO, 71.1 LTV and 43 months of reserves.

The Change Company CDFI LLC and its subsidiary Change Lending, LLC (“Change”) – America’s CDFI – are pleased to announce that Change has closed its seventh securitization of its proprietary Community Mortgages, and the first such securitization which earned an AAA rating for the senior A1 class. There were 16 unique investors in the $307 million offering, demonstrating the growing interest and strengthening demand from well-established RMBS investors, including socially responsible Money Managers, Banks, Insurance Companies and Private Funds.

Receiving our first AAA rating on a securitization comprised solely of our proprietary Community Mortgage is an important milestone for Change.
-Jesse Elhai

Jesse Elhai, Managing Director of Capital Markets for Change, said, “Receiving our first AAA rating on a securitization comprised solely of our proprietary Community Mortgage is an important milestone for Change. We appreciate DBRS Morningstar and our investors for recognizing and rewarding the strong credit underwriting and performance of our Community Mortgage securitizations.”

The securitization, which was issued from Change’s shelf registration (CHNGE), closed on May 25th, 2023. The securitization was comprised of loans with a weighted average FICO of 740, LTV of 71.1%, 43 months of reserves, and 8.72% note rate.

Jason Biegel, President of Change Lending, said, “We are excited to close this groundbreaking 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.”

This transaction follows the completion of a comprehensive assessment by Institutional Shareholder Services (ISS) that validated Change’s Social Bond and Loan Framework. The analysis by ISS determined that Change’s mission-driven mortgage products, social lending, and inclusive business model, align with the Social Bond Principles established by the International Capital Markets Association and positively contributed to the Sustainable Development Goals defined by the United Nations.

Since becoming a CDFI in 2018, Change has funded over $25 billion in loans to more than 75,000 families. Change will continue to finance underbanked, prime borrowers – with a primary focus on Black, Latino, and low-income borrowers, and borrowers who live in low-income communities – to eliminate the wealth gap in America.

[Cantor Fitzgerald served as the initial purchaser and bookrunner on the transaction. Dentons US LLP served as issuer counsel to Change and Hunton Andrews Kurth LLP served as underwriter counsel in the transaction.]

About The Change Company

The Change Company empowers homeowners, small businesses, and consumers to pursue their American dreams by bringing social and racial equity to banking and lending. The Change Company has built businesses that have lent over $25 billion to over 75,000 borrowers across America. For more information, visit us at

About Change Lending

Change Lending seeks to expand homeownership by providing credit-worthy loans to prime, underbanked borrowers. Since becoming a CDFI, over 70% of Change Lending’s loans have been to Black, Latino, and low- and moderate-income borrowers and communities. For more information, visit us at and


Lindsay Valdeon
[email protected]