Hildene Capital Secures $453.9 Million Non-QM Securitization, Surpassing $1.8 Billion in 2025 Issuance
Stamford, CT – Hildene capital Management, a credit-focused alternative asset manager, has finalized CROSS 2025-H4, a $453.9 million securitization supported by non-qualified residential mortgage (non-QM) loans.This latest deal propels Hildene’s total non-QM issuance for 2025 to an impressive $1.8 billion.
The securitization is backed by loans originated through CrossCountry Mortgage (CCM),marking a significant milestone in their ongoing collaboration. The CROSS 2025-H4 transaction highlights the increasing demand and activity within the non-QM sector.
Details of the CROSS 2025-H4 Securitization
The CROSS 2025-H4 securitization encompasses a diverse pool of 895 residential mortgages, boasting a weighted average FICO score of 748 and a loan-to-value (LTV) ratio of 70.25.These metrics reflect the high credit quality of the underlying assets.
Ratings from Fitch and Kroll confirm the strength of the deal, with 99.5% of the loans achieving investment-grade ratings ranging from AAA through B. Goldman Sachs & Co. LLC served as the structuring agent, while J.P. Morgan acted as the joint lead on the transaction.
Hildene’s Strategic Approach to Non-QM Loans
Justin Gregory, Portfolio Manager at Hildene, emphasized the company’s unique approach to asset-based credit. “The completion of our latest securitization underscores our differentiated approach to asset-based credit, rooted in our relationship with CCM that provides scalable access to high-credit-quality non-QM loan origination,” Gregory stated.
This securitization represents Hildene’s fourth non-QM transaction in 2025, showcasing their continued commitment to this segment of the mortgage market.
Did You Know? Non-QM loans can be a valuable option for self-employed individuals or those with non-traditional income streams who may not qualify for traditional mortgages.
A Look at Hildene’s 2025 Securitization Activity
Prior to the CROSS 2025-H4 transaction, Hildene successfully completed three other non-QM securitizations in 2025:
- CROSS 2025-H1: A $511.5 million securitization backed by 987 non-qualified residential mortgage loans, completed in January.
- CROSS 2025-H2: A $426.8 million securitization backed by 860 non-qualified residential mortgage loans, completed in march.
- CROSS 2025-H3: A $413.4 million securitization backed by 830 non-qualified residential mortgage loans, completed in april.
Hildene’s Growing Footprint in the Non-QM Market
Since 2022, Hildene Capital Management has significantly expanded its presence in the non-QM market, issuing approximately $5.4 billion of non-QM securitizations across 14 deals. This demonstrates the firm’s expertise and confidence in this asset class.
The non-QM market has seen substantial growth recently, driven by evolving borrower needs and a desire for more flexible lending criteria. According to a report by Inside mortgage Finance, non-QM origination volumes reached an estimated $35 billion in 2023.
Pro Tip: Borrowers considering a non-QM loan should carefully evaluate the terms and conditions, including interest rates, fees, and prepayment penalties.
The Future of Non-QM Securitizations
With increasing demand for alternative lending solutions, the non-QM market is poised for continued expansion. Securitizations like those completed by Hildene Capital Management play a vital role in providing liquidity and supporting the growth of this important segment.
What are your thoughts on the increasing role of non-QM loans in the current mortgage market? How do you see non-QM securitizations impacting the availability of credit for diverse borrowers?
Understanding Non-QM Loans: An Evergreen Perspective
Non-Qualified Mortgages (non-QM loans) represent a segment of the mortgage market that caters to borrowers who may not fit the traditional criteria for a Qualified Mortgage (QM). These loans offer flexibility for individuals with unique financial situations, such as self-employed professionals, entrepreneurs, or those with irregular income patterns.
Unlike QM loans, non-QM loans do not adhere to the strict guidelines established by the Consumer Financial Protection Bureau (CFPB). while this flexibility can be beneficial, it’s crucial for borrowers to understand the potential risks and benefits before pursuing this option.
Key Differences Between QM and Non-QM Loans:
| Feature | Qualified Mortgage (QM) | Non-Qualified Mortgage (non-QM) |
|---|---|---|
| Borrower Qualification | Strict income verification and debt-to-income (DTI) requirements | More flexible income verification and DTI requirements |
| Loan Features | Prohibits certain risky features like excessive points and fees | May allow for more flexible loan features |
| Interest Rates | Generally lower due to lower risk | Potentially higher due to increased risk |
| borrower Profile | Typically salaried employees with stable income | Self-employed,entrepreneurs,or those with irregular income |
Considerations for Non-QM Borrowers:
- Interest Rates: Non-QM loans typically come with higher interest rates to compensate for the increased risk to the lender.
- Fees: Be prepared for potentially higher fees associated with non-QM loans.
- Loan Terms: Carefully review the loan terms,including prepayment penalties or balloon payments.
- Financial Stability: Ensure you have a solid financial plan and can comfortably afford the monthly payments.
The non-QM market provides valuable opportunities for borrowers who may be underserved by traditional mortgage products. However, thorough research and careful consideration are essential to make an informed decision.
Frequently Asked Questions About Non-QM Securitization
- What exactly is a non-QM securitization?
- A non-QM securitization is the process of packaging non-qualified mortgage loans into securities that can be sold to investors.
- who benefits from non-QM securitization?
- lenders benefit by freeing up capital, while investors gain access to a diversified pool of mortgage assets. Borrowers benefit from increased access to mortgage options.
- What risks are associated with non-QM loans?
- Non-QM loans may carry higher interest rates and fees due to the increased risk associated with borrowers who don’t meet traditional lending criteria.
- How do credit ratings impact non-QM securitization deals?
- Credit ratings from agencies like Fitch and Kroll help investors assess the risk and quality of the non-QM securitization.
- What role does CrossCountry Mortgage play in Hildene’s non-QM deals?
- CrossCountry Mortgage originates the non-QM loans that are then securitized by Hildene Capital Management.
What are your thoughts on this latest securitization? Share your comments below!
