"Fitch cited CCM's strong market share in the distributed retail channel, solid operating track record, experienced management team and conservative leverage as credit strengths. The company ranked as the eighth-largest lender in the first half of 2025, with $23.05 billion in originations, according to Inside Mortgage Finance. But Fitch also flagged challenges, including exposure to cyclical mortgage market conditions, reliance on secured short-term wholesale funding, regulatory risk tied to Ginnie Mae loans and key personnel risk related to majority shareholder Ron Leonhardt."
"CCM's leverage measured as gross debt to tangible equity stood at 4.0x in the second quarter, down from a peak of 5.3x in 2019 but higher than 2.8x at year-end 2024. Corporate leverage, excluding origination funding facilities, was just 0.6x, which Fitch considers low. Despite those risks, CCM has remained profitable. Its pretax return on average assets (ROAA), adjusted for Ginnie Mae loan repurchases, was 3.0% as of June 30 down from 6.1% in 2024 but an improvement from 1.2% in 2023."
Fitch Ratings assigned BB- notes and reaffirmed CCM's B+ long-term issuer default rating, noting that unsecured debt issuance diversifies capital structure and reduces balance sheet encumbrance. CCM's gross debt to tangible equity was 4.0x in Q2, down from a 2019 peak but above year-end 2024. Excluding origination funding, corporate leverage was 0.6x. The company expects to use net offering proceeds to repay part of its mortgage servicing rights line and cover fees. Fitch identified strengths including strong distributed retail market share, solid operations, experienced management and conservative leverage, while flagging cyclical mortgage exposure, secured short-term funding reliance, regulatory and key-personnel risks. Reported liquidity included cash and undrawn MSR borrowing capacity.
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