GoodFinch’s inaugural $301M green bond
A brand new green investing company has joined the ranks of sustainable financing market peers such as Fannie Mae. GoodFinch opened for business earlier in 2020, as an Environmental, Social, and Governance (ESG) focused asset manager and green residential mortgage backed security (RMBS) investor.
The San Francisco based company now has announced the closing of its inaugural securitization of $301 million of solar and energy efficient residential mortgage loans, contributed by GoodFinch, Goldman Sachs and Loanpal Homes.
All loans in the ESG RMBS pool originated through the Loanpal platform. GoodFinch Fund I, LP acted as the transaction sponsor, while Barclays and Goldman Sachs as joint book-runners.
“With mortgage rates at all-time lows, prepay speeds are underestimated in the market,” said Tanguy Serra, co-founder and CIO of GoodFinch. “Loans originated on the Loanpal platform re-opened the renewable credit markets in June and this securitization, with a cost of capital of 3.27%, further supports the robust demand in the marketplace for clean energy assets.”
GoodFinch’s co-founders, Tanguy Serra, Hayes Barnard and Andrew Mills are clean energy market veterans driven by “a strong conviction around the performance of residential solar loans.”
Their stated goal is to use the advantage of their deep industry knowledge “to target strong performing residential solar and home efficiency loans” that help homeowners lead a more sustainable life. “Homeowners who are choosing to invest to improve their homes are making a strong statement about their outlook and their current financial situation,” said Serra.
So far, GoodFinch has raised two funds and sourced warehouse capital from Barclays and other sources to purchase $600 million worth of residential solar loans, according to a statement.
“This is our fifth securitization of Loanpal solar assets and we continue to be impressed with quality of loans generated on the Loanpal platform,” said Katrina Niehaus, Goldman Sachs managing director.
The inaugural GoodFinch securitization (co-issued by Loanpal Solar Loan 2020-2 Ltd. and Loanpal Solar Loan 2020-2 LLC) consists of $252 million of rated notes, with ratings provided by Kroll Bond Rating Agency, the company said. The collateral features 10-year to 25-year loans with coupons ranging from 2.99% to 6.99% and average FICO score of 743. To retain risk, GoodFinch said, it plans to retain the Class R Notes “as sole sponsor of the transaction.”
The development, appeal and application of green and sustainable financing products keep broadening, said Rohit Chaku, a managing director at Barclays. “We know that we can help to prove that finance is a driving force in helping the world to transition more quickly towards a zero carbon future.”
LendingTree reports causes of home seller anxiety
LendingTree found some pretty interesting info on the causes of anxiety when folks are selling their homes. Low interest rates are reportedly driving many homeowners to sell and look for their dream homes at the same time, and do it all as soon as possible. Often, such strategy also entails critical repairs, moving or storage planning, or other costly measures sellers did not see coming.
Turns out, simultaneously selling and buying a new home is “the most anxiety-inducing part of the home-selling process,” for 29%, or nearly one-third of home sellers, according to LendingTree data. Another 15% stress over failing to sell their home.
Those concerns aside, pre-sales related costs are the next biggest headache. Nearly 16% of sellers participating in the report said costly repairs and upgrades are the most stressful part of selling a home.
More than four in ten, or 43%, strongly agree that the home-selling process is more expensive than they anticipated.
On average, home sellers expect to spend more than $10,000 before selling. To make their home more attractive to buyers most would spend for fresh interior paint, bathroom upgrades and kitchen appliances. The report found Millennial sellers anticipated spending more than all other age groups, at an average of $13,727.
LendingTree also found 21% of sellers did not have a real estate agent. While some of the sellers who chose to team up with agents complained they are adding to the overall pressure by trying to influence sellers.
Notably, 22% of home sellers reported they felt pressured by their agent to accept a lower-priced offer. Another 22% felt pressured “to spend a significant amount of money on repairs and upgrades before selling their home.
Only 31% of the survey participants said they did not face any type of pressure from their agent.
Indecomm releases lending BotGenius
There’s a new bot in town. Mortgage fintech Indecomm Global Services has introduced highly sophisticated robots that lenders can use to automate their middle-office functions. BotGenius is a new addition to Indecomm’s Automation Continuum mortgage industry framework that tapped on insights gained from handling hundreds of mortgage lenders’ processes, the Edison, N.J., based company said.
BotGenius represents “a collection of software robots that are pre-programmed to emulate human computer interaction functions” for specific standardized mortgage processes, tasks, and workflows that could benefit most from Robotic Process Automation (RPA).
Indecomm’s approach to applying RPA for various loan origination needs “is innovative, contextualized, and developed specifically for the mortgage industry,” said Rajan Nair, CEO of Indecomm Global Services. BotGenius easily integrates “with leading loan origination systems right out of the box,” ensuring compatibility and a cost effective collaboration.
Indecom developed the BotGenius robots with the assistance of mortgage operations experts, “including processors and underwriters who have processed and funded loans worth of hundreds of billions of dollars,” he said.
While Indecomm specializes in automation, outsourcing, compliance services and technology for large and mid-sized U.S. lenders, services, mortgage insurers, and title companies – BotGenius robots and the Indecom framework “help lenders of all sizes automate,” according to the fintech’s website.
Using expert knowledge BotGenius “automates the most repetitive and routine tasks,” currently performed by employees across the mortgage lifecycle “from loan setup through default servicing,” Indecomm said, and from order intake through commitment and report preparation, in title and settlement services.
BotGenius features also include an upfront determination of return on investment and tracking; Success-based pricing allowing clients to pay for successfully completed transactions only; No license, upgrade or additional maintenance costs, since Indecomm’s Robotics Operations Center manages the robots’ upkeep.