Sustainable loans backs $437.1 million ABS from Cross River Bank

Cross River Bank has sponsored a $437.1 million securitization of a stream of payments from sustainable home improvement loans and other related assets.

GoodLeap actually originated all of the sustainable home improvement loans, which finance consumer solar and home improvement projects, and Cross River Bank services them, according to a statement from Kramer Levin, a law firm on the deal. Known as CRB Sustainable Home Solutions 2024-1G, the transaction contains loan that had a Nov. 30, 2024 cutoff date, according to Kramer Levin.

Known as CRB Sustainable Home Solutions, 2024-1G, the transaction will issue notes through a capital structure of six tranches, and including a $24.8 million, class R piece that will not bear interest. The notes will pay a fixed 4.00% rate and have a legal final maturity of Oct. 20, 2053, according to Kramer Levin.

Fitch Ratings assigns A+ to the class A notes and A to the class B notes. After that the classes C, D, and E notes receive ratings of BBB, BB and B, respectively. Barclays Capital is the placement agent on the deal.

Vervent will act as backup servicer on the deal, which will first make pro rata payments to the administrator and servicers. After that CRB 2024-1G will repay interest and principal to investors on a senior-subordinate basis, beginning with the class A notes.

To further bolster timely repayment of notes, CRB 2024-1G has an optional redemption. Whenever the pool balance is 10% or less of the initial pool balance, any holder of class R subordinate notes may call for a cite to redeem the notes, according to Kramer Levin. The deal requires that a majority in outstanding aggregate interest approve this vote, and if that is the case, then those noteholders can cause an early redemption of the notes on the next monthly payment date. CRB 2024-1G pays on the 20^th of every month, beginning on March 20, Kramer Levin said.