Change Lending to join Federal Home Loan Bank of San Francisco

Change’s membership is expected to become official in May upon its required capital stock purchase of $7 million

Nonbank mortgage originator Change Lending will become a member of the Federal Home Loan Bank of San Francisco (FHLB-SF).

The Anaheim, California-based originator’s application was approved on Wednesday after it fulfilled all statutory requirements for membership, including those related to capital, profitability and liquidity, the company reported.

Change’s membership will become effective upon its acquisition of the required $7 million capital stock in the FHLB-SF. The transaction is expected to close in May. 

“We welcome a partnership with the FHLB-SF to enhance our strength and reach as America’s CDFI,” said Steven Sugarman, founder of the Change Company, the parent company of Change Lending. “We are excited to expand our impact and better serve our target market borrowers.”

Change is a community development financial institution (CDFI) that is certified by the U.S. Treasury Department, given to specialized organizations that provide financial services to low-income communities and others who lack financing options.

Change and the Treasury Department went through a short-lived legal dispute after the lender sued the CDFI Fund for its “flawed analysis and mathematical errors,” leading to a decertification of Change Lending. 

The Treasury Department renewed the certification in February following a settlement agreement in November 2023. 

Change Lending’s services include small-business loans and lines of credit, investor real estate loans, rehab loans and renovation loans, according to its website. 

Since becoming a CDFI in 2018, Change has funded more than $25 billion in loans to more than 75,000 borrowers, the lender reported.

Last year, Change Lending ranked as the top nonqualified mortgage (non-QM) originator, posting $4.1 billion in 2022 production volume, per Scotsman Guide.

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