The Change Company Closes First Ever Residential Mortgage Backed Securitization Comprised Entirely of CDFI Originated Loans

  • First ever RMBS transaction comprised entirely of mortgage loans originated by a Community Development Financial Institution was also designated a Social Bond by Institutional Shareholder Services.
  • $297 million of residential mortgage loans backed the significantly oversubscribed ESG issuance which included over two dozen institutional investors.
  • Offering allows Change to improve the cost of capital for loans to Black, Latino, and other underbanked prime borrowers

Equal access to the American Dream (Graphic: Business Wire)

ANAHEIM, Calif.--()--The Change Company, America’s Community Development Financial Institution (CDFI), is pleased to announce that it has closed the first ever securitization of residential home loans originated entirely by a CDFI. Investors in the $297 million offering included socially responsible asset managers and banks seeking to finance home loans to credit-worthy Black, Latino, and low- and moderate-income borrowers and communities.

Jesse Elhai, Managing Director of Capital Markets for Change, said, “We are proud to be the first CDFI to securitize its own residential loans. This inaugural securitization validates the importance of the exemptions provided to CDFIs by the CFPB to fairly and responsibly meet the needs of minority and low-income borrowers under Regulation Z. We thank our new financial partners for helping us demonstrate that CDFIs are essential to ending structural economic inequalities in homeownership. Change will continue to expand its partnerships with financial institutions seeking socially responsibly investments that level the financial playing field for Black, Latino and low-income Americans across the United States.”

Steven Sugarman, Founder of The Change Company, said, “As we celebrate Black History Month, we are reminded that homeownership is the key to closing the racial wealth gap and achieving generational wealth. We thank our new financial partners who, through their investment in this securitization, are demonstrating their commitment to fair and equitable homeownership in America.”

This transaction follows the completion of a comprehensive assessment by Institutional Shareholder Services (ISS) which validated The Change Company’s Social Bond and Loan Framework. The analysis by ISS determined that Change’s proposed framework, mission-driven mortgage products, social lending, and inclusive business model, aligns 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 2018, Change has funded over $20 billion in loans to more than 50,000 families. Through future securitizations, Change will continue to enhance its ability to bank the underbanked, eliminate the wealth gap, and level the playing field for diverse homeowners and small business owners.

Cantor Fitzgerald and Performance Trust served as the initial purchasers and joint bookrunners on the transaction. Dentons US LLP served as issuer counsel to Change Lending 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’s team has built businesses that have lent over $50 billion to over 250,000 borrowers and provided financial services to over two million Americans. For more information, visit us at and

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

No Offer or Solicitation
This press release does not constitute an offer to sell, a solicitation of an offer to sell or the solicitation of an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The Notes were offered and sold only to accredited investors and to qualified institutional buyers. The Notes have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction. Unless they are registered, the Notes may be offered and resold only in transactions that are exempt from registration under the Securities Act and applicable state securities laws.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, predictions, projections, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements are typically, but not exclusively, identified by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will, “should,” “seeks,” “likely,” “intends” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; our ability to successfully identify and address the risks associated with any possible future acquisitions, including risks related to integration; changes in management personnel; interest rate risk; credit risk associated with our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates and projections; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets or deferred tax assets; our risk management strategies; increased competition in the bank and non-bank financial services industries, nationally, regionally or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations, and their application by our regulators; governmental monetary and fiscal policies; and increases in our capital requirements.

While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.


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