The Change Company Closes Sixth Investment Grade Securitization of 2022

The Change Company CDFI LLC and its subsidiary Change Lending, LLC (“Change”) – America’s CDFI – are pleased to announce that Change has closed its sixth securitization of 2022. Investors in the $201 million offering included socially responsible asset managers seeking to finance home loans to credit-worthy Black, Latino, and low-income borrowers and communities.

Jesse Elhai, Managing Director of Capital Markets for Change, said, “Despite strong macroeconomic headwinds, today we took another step towards bringing racial and social equity to homeownership. Closing this most recent RMBS securitization by a CDFI further validates the importance of the exemptions provided to CDFIs by the CFPB. Change fairly and responsibly meets the needs of minority and low-income borrowers left behind by traditional banks and lenders. We thank our financial partners for helping us further our mission of ending structural economic inequities in homeownership. Change will continue to expand its partnerships with financial institutions seeking socially responsible investments that level the financial playing field for Black, Latino, and low-income Americans across the United States.”

The securitization, issued from Change’s shelf registration (CHNGE), closed on December 28, 2022. The securitization was comprised of loans with a weighted average FICO of 728, LTV of 56%, and note rate of 7.85%. Over 60% of the loans in the securitization were made to borrowers who were Black, Latino, or low-income or who lived in low-income communities.

Steven Sugarman, Founder of The Change Company, said, “The strong credit quality of the loans in this securitization demonstrates how CDFIs are able to serve the robust market of prime homeowners who have been left out of the financial system for noneconomic reasons. The Change Company is laser focused on serving the over $125 billion of borrowers with loan-to-values under 60% that banks denied last year. We thank our financial partners who, through their investment in this securitization, are enabling us to make fair and equitable homeownership in America more affordable.”

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 2018, Change has funded over $20 billion in loans to more than 50,000 families. Change will continue to finance underbanked, prime borrowers – with a primary focus on Black, Latino, and low-income borrowers – 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’s team has built businesses that have lent over $50 billion to over 250,000 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

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.


Media Inquiries
Lindsay Valdeon

Read Article
Previous post
Next post

CDFI Fact Sheet

Comments to Proposed CDFI Fund Rule

Fortune's 2021 Change the World List

Racism And The Economy

2021 CDFI Survey Key Findings

Closing the Racial Inequality Gaps