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Hildene Capital Management Closes $496.3M Non-QM Securitization
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Hildene Capital Management has successfully closed its CROSS 2025-H6 securitization, totaling $496.3 million, backed by a diversified pool of non-qualified mortgage (non-QM) loans. This follows a strong year for the firm, with $2.7 billion in non-QM issuance to date.
The Rise of Non-QM Securitizations
Choice asset manager Hildene Capital Management continues to demonstrate strength in the non-QM mortgage market. The CROSS 2025-H6 securitization, backed by 968 loans, highlights ongoing investor appetite for these assets. Non-QM loans, which fall outside the guidelines of government-sponsored entities like Fannie Mae and Freddie Mac, offer opportunities for lenders and investors alike, but require careful risk assessment.
This latest deal builds on Hildene’s momentum, following the successful closing of CROSS 2025-H5 in June 2025, which totaled $416.4 million. Both transactions were sourced through Hildene’s strategic partnership with CrossCountry Mortgage, a key driver of loan quality and volume.
The strong performance of these securitizations-and Hildene’s sixteen total as 2022-underscores a broader trend in the alternative credit markets. Investors are increasingly seeking opportunities beyond conventional mortgage-backed securities, and non-QM loans, when carefully underwritten, can offer attractive risk-adjusted returns.
Justin Gregory, Portfolio Manager at Hildene Capital Management
We are seeing continued demand for high-credit-quality non-QM origination, as demonstrated by our consistent issuance and the successful close of these securitizations.
The weighted average FICO score of 748 and a loan-to-value (LTV) ratio of 71.03% for the CROSS 2025-H6 pool demonstrate the firm’s focus on credit quality. Fitch and Kroll ratings further validate the strength of the underlying assets, with 96.35% receiving investment-grade ratings.
Frequently Asked Questions About Non-QM Securitizations
| Question | Answer |
|---|---|
| what are non-QM loans? | Non-QM (non-qualified mortgage) loans don’t meet the strict criteria set by Fannie Mae and Freddie Mac. They often cater to borrowers with unique financial situations, like self-employed individuals or those with non-traditional income streams. |
| What is a securitization? | A securitization is the process of pooling together loans and then selling them as bonds to investors. This allows lenders to free up capital and continue making loans. |
| What does LTV mean in the context of mortgages? | LTV, or loan-to-value ratio, represents the amount of the loan compared to the appraised value of the property. A lower LTV generally indicates a lower risk for lenders. |
| Why are investors interested in non-QM securitizations? | Investors are drawn to non-QM securitizations for potential higher yields compared to traditional mortgage-backed securities, but they also require a thorough understanding of the associated risks. |
| What role does CrossCountry Mortgage play? | CrossCountry Mortgage is a key origination partner for Hildene, providing a consistent flow of loans that meet the firm’s stringent underwriting standards. |
| Is a high FICO score significant for non-QM loans? | Yes, while non-QM loans are more flexible, a strong FICO score-like the 748 average in this securitization-is still a crucial indicator of borrower creditworthiness. |
| What is Hildene’s overall strategy with non-QM loans? | Hildene’s strategy focuses on originating and securitizing high-quality non-QM loans, capitalizing on demand from investors seeking alternative credit opportunities. |
Looking Ahead: Trends in the Non-QM Market
The non-QM market is expected to continue evolving, driven by factors such as interest rate fluctuations, economic growth, and regulatory changes. Demand for flexible mortgage solutions is likely to remain strong, particularly among self-employed