SAN FRANCISCO and ARLINGTON, Va., Feb. 8, 2017 /PRNewswire/ -- Promontory Interfinancial Network, LLC and Social Finance, Inc. (SoFi) today announced a new program to enable community banks to purchase super-prime student loans originated by SoFi. The program will help community banks gain access to SoFi's high quality assets by streamlining the due diligence process.
"We are always looking for new product and service opportunities to meet the needs of the thousands of banks that are Promontory Network members, and we are excited about this strategic alliance with SoFi," said Mark Jacobsen, President and Chief Executive Officer of Promontory Interfinancial Network.
To assist banks in assessing these loans, Promontory Interfinancial Network commissioned Promontory Financial Group, LLC, an IBM Company, to review and report on SoFi's underwriting, operations, and systems. The report provides information and analysis banks can use to complement their own due diligence and assists them in their efforts to satisfy regulatory expectations for loan purchases and third-party risk.
The report describes SoFi's current loan origination and post-origination practices and outlines the controls that SoFi has in place, including those that promote regulatory compliance, consumer privacy, and information security. In preparing the report, Promontory Financial Group reviewed SoFi policies, procedures, and contracts related to underwriting and servicing and tested loan files so as to confirm compliance with federal laws, regulations and guidance.
"Promontory Financial Group did the work to simplify the due diligence process for banks, adding levels of review individual institutions could not perform on their own," Mr. Jacobsen continued. "As a leading risk management and bank regulatory compliance consulting firm, Promontory Financial Group's expertise is unsurpassed."
SoFi President and Chief Financial Officer Nino Fanlo said, "This unique partnership opens us up to a new group of bank investors and further diversifies our funding sources. Large banks have been buyers of our loans for several years, but this program will help small to mid-sized banks participate in the growth of this asset class, and we look forward to building relationships with them. With one of the largest bank networks of its kind, representing more than 47% of all U.S. banks, Promontory Interfinancial Network is an ideal partner for us."
The companies expect that SoFi loan program information will be available on Bank Assetpoint, Promontory Interfinancial Network's loan marketplace, beginning this month. The cost to banks for buying SoFi loans will be the same as buying loans directly from SoFi. Under the program, SoFi will pay Promontory Interfinancial Network a fee for each transaction.
About Promontory Interfinancial Network, LLC and Bank Assetpoint
Promontory Interfinancial Network was founded by leading figures in the banking industry—Eugene Ludwig, Alan Blinder, Mark Jacobsen, and Alfred Moses—to provide financial institutions with profit-enhancing solutions. The founders envisioned a network, composed of thousands of financial institutions, whose "synthetic size" would help each member institution to compete more efficiently – to benefit from the Power of ManySM working together.
Bank Assetpoint, brought to you by Promontory Interfinancial Network, is a nationwide marketplace for loans offering access to new loan opportunities via high-touch service from professionals possessing in-depth knowledge of banks. Bank Assetpoint's team helps its more than 1,400 registered bank participants to connect with each other and with nonbank buyers and sellers
SoFi is a new kind of finance company taking a radical approach to lending, wealth management, and insurance. From unprecedented products and tools to faster service and open conversations, we're all about helping our members get ahead and find success. Whether they're looking to buy a home, save money on student loans, ascend in their careers, or invest in the future, the SoFi community works to empower our members to accomplish the goals they set and achieve financial greatness as a result. For more information, visit SoFi.com.
To date, SoFi has received more than $1.4 billion in funding, including a 2015 $1 billion Series E led by SoftBank, and SoFi's customers now number more than 230,000. The company has over 800 employees across offices in San Francisco (HQ); Healdsburg, CA; New York City, NY; Helena, MT; Washington D.C.; and Cottonwood Heights, Utah.
For Promontory Interfinancial Network:
Senior Vice President, External Affairs
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