Change Lending Approved For Membership In Federal Home Loan Bank Of San Francisco

Change Lending, LLC, a community development financial institution (CDFI), announced that the Federal Home Loan Bank of San Francisco (FHLB-SF) has approved its application for membership. 

The non-bank lender has 60 days to fund the required capital stock purchase, which will be around $7 million, and expects the transaction to close in May. 

The decision comes after Change met all statutory requirements, including capital, profitability, and liquidity standards.

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

Change Lending, along with its parent, The Change Company, hold certification from the U.S. Department of the Treasury as CDFIs. That status was threatened in 2023. Since then the U.S. Department of the Treasury's Community Development Financial Institutions Fund renewed Change's CDFI Certification in February 2024. 

Change says it has focused on providing home loans to underserved, prime homeowners, with a significant emphasis on supporting Black, Latino, and low-income borrowers, as well as those residing in low-income communities.

"We are pleased with the decision of the FHFA and FHLB-SF to approve Change’s application for membership in the FHLB-SF. We look forward to working in partnership with the FHLB-SF to bring greater equity to homeownership," stated Rev. Everett Bell, Jr., chair of Change's Community Advisory Board.

Change's approval for FHLB-SF membership highlights its position as America’s largest Non-QM lender and the first non-bank CDFI to achieve a AAA-rating on its residential mortgage loan securitizations.