SoFi Expects to Complete $1 Billion in Securitization Volume in Q3, 2015
Follows on Heels of Firm's Fifth - and Largest and Highest Rated - Securitization
Jun 17, 2015, 07:30 ET
SAN FRANCISCO, June 17, 2015 /PRNewswire/ -- SoFi, the nation's second largest marketplace lender, today announced it expects its securitization volume for the third quarter of 2015 alone will exceed $1 billion. To date, SoFi has completed five securitizations of refinanced student loans with a total value of more than $1.55 billion. As SoFi moves into the second half of the year, it expects to broaden its transactions into other asset classes, such as personal loans and mortgages, where volume also continues to grow.
SoFi's fifth securitization, which closed last week, included $411 million of refinanced student loans and was backed by $441 million in collateral. The transaction was comprised of $147 million of floating rate A-1 notes, $235 million of fixed rate A-2 notes, and $29 million of Class B bonds. Moody's, Standard & Poor's and DBRS gave the highest rated senior notes Aa2/A/AA (high) respectively. It is the largest securitization for a marketplace lender and is the only securitization of undergraduate and graduate refinanced student loans to achieve such a rating. SoFi's fourth securitization was completed in January, 2015, and totaled more than $313 million.
SoFi completed its first rated securitization in 2013. In 2014, SoFi became the first marketplace lender to secure investment grade ratings from S&P and Moody's for senior notes in a securitization.
"Investor response to the high quality of our member base and loan portfolio speaks for itself," said Nino Fanlo, SoFi's CFO and COO. "We're pleased to be leading marketplace lenders to mainstream capital markets and their most efficient outcomes."
"Transactions like these help enable the firm to continue its fast growth across product development, member servicing and staff," he continued. "Our goal is two-fold: to appeal to the largest universe of buyers and ensure we are the financial services destination for high achieving professionals. Our mission is to assure that our select customers enjoy premium products and services."
SoFi is a leader in marketplace lending and the largest provider of student loan refinancing, with over $2.5 billion dollars in loans funded. Recently recognized by CNBC as a Disruptor 50, we're transforming financial services for early stage professionals with student loan refinancing, mortgages, personal loans, and MBA loans. Unlike traditional lenders, our proprietary underwriting approach takes into account merit and employment history to offer unique credit products our members won't find elsewhere. We offer individual and institutional investors the ability to create positive social impact on the communities they care about while earning compelling rates of return. For more information, visit SoFi.com.
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