Hildene Capital Management, LLC – a $14.7 billion credit-focused asset manager – announced the completion of CROSS 2024-H1, a $318.4 million securitization backed by non-qualified residential mortgage (non-QM) loans originated by CrossCountry Mortgage (CCM), one of the largest retail residential mortgage originators in the U.S.
CROSS 2024-H1 is collateralized by a pool of 630 residential mortgages, 100% originated by CCM. And the loan pool features a weighted average FICO of 738 and 70.6 percent loan-to-value, with a majority of the loans being owner-occupied. Fitch rated the senior investment grade bonds AAA-BBB and Kroll rated both the IG and Non-IG bonds down to BB. Goldman Sachs structured the deal, with Atlas SP Partners participating as joint lead and Piper Sandler and Nomura acting as co-managers.
In 2022, Hildene entered into a multi-year strategic relationship with CCM – which continues to provide Hildene with exclusive access to scalable, high credit quality non-QM loans originated from the CCM platform.
CROSS 2024-H1 is Hildene’s first non-QM securitization of the year, following a $332.8 million securitization of CROSS 2023-H2 in November 2023, and a $303.4 million securitization of CROSS 2023-H1 in July 2023. And Hildene and CCM expect to programmatically issue deals throughout 2024.
KEY QUOTE:
“The close of our latest CROSS securitization underscores the opportunity we continue to see in the non-QM market. 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.”
– Justin Gregory, Portfolio Manager at Hildene
