Marketplace lender SoFi announced today it expects to exceed $1 billion in securitizations in the third quarter of 2015.
To date, SoFi has completed five securitizations of refinanced student loans for a combined value of more than $1.55 billion.
SoFi plans to add personal loans and mortgages, two current growth areas, into its transactions by year’s end.
SoFi’s fifth securitization was completed earlier in June and is the largest securitization for a marketplace lender, according to a release. Backed by $441 million in collateral, it consisted of $411 million in refinanced student loans containing $147 million in floating rate A-1 notes, $235 million of fixed rate A-2 notes, and $29 million of Class B bonds.
The highest rated senior notes were rated Aa2 by Moody’s, A by Standard and Poors, and AA (high) by DBRS. SoFi said this is the only securitization of undergraduate and graduate refinanced student loans to achieve such a rating.
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.
“Investor response to the high quality of our member base and loan portfolio speaks for itself,” SoFi CFO and COO Nino Fanlo said. “We’re pleased to be leading marketplace lenders to mainstream capital markets and their most efficient outcomes.”
Mr. Fanlo said the transaction will help grow product development, member servicing and SoFi’s staffing levels.
“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.”
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