Freedom Financial Network Announces Closing of $205 Million Securitization, Rated AAA by DBRS, Kroll |
Deal is the 12th Freedom securitization and brings total issuance to almost $3.5 billion
SAN MATEO, California., April 7, 2022 /PRNewswire/ — Freedom Financial Network (FFN), a leading digital personal finance company, announces the closing of a securitization of $204.93 million in rated debt securities backed by ConsolidationPlus personal loans.
The securitization, FREED ABS Trust 2022-2CP, is the second Freedom Deal to receive a AAA rating from DBRS Morningstar and the fourth to receive a AAA rating from the Kroll Bond Rating Agency (KBRA). It is also the first ConsolidationPlus loan securitization to be rated AAA by two rating agencies. The deal is the 12thth Securitization by the Freedom Consumer Credit Fund (FCCF), an investment fund managed by Freedom Financial Asset Management (FFAM).
Underwriting for the ConsolidationPlus loan program is based on proprietary algorithms that evaluate behavioral, transactional, employment and income data, as well as a manual check of the borrower’s creditworthiness. The underlying ConsolidationPlus loans were originated by banking partners Cross River bank® and MetaBank®N / A on the FFAM platform. ConsolidationPlus loan help borrowers speed up the process of resolving unsecured debt. The loans are offered exclusively to customers of Freedom Debt Relief (FDR) and certain other debt relief companies who have been enrolled in a debt program for at least six months and have made timely payments into their dedicated accounts.
“The successful issuance of this securitization at such a challenging time in the broader financial market is testament to the robust underwriting and credit risk models used to originate ConsolidationPlus loans,” said Barry Rafferty, senior vice president of capital markets at FFAM. “We are pleased to once again receive AAA ratings from two rating agencies and look forward to continuing on this positive path in future transactions.”
The A, B, C and D Class Fixed Rate Notes are rated AAA (sf), AA (sf), A (sf) and BBB-(sf) by KBRA. The Class A, B and C Fixed Rate Debt Securities are rated AAA (sf), AA (sf) and A (high) (sf) by DBRS Morningstar. Class D grades were not graded by DBRS.
“ConsolidationPlus loans are an important way to help consumers manage debt as they begin their journey toward a brighter financial future,” he said Andrew Hauser, Co-Founder and Co-CEO of Freedom Financial Network. “Completing this transaction at a time when several other issuers were closing deals due to the volatile economic and geopolitical climate underscores our expertise and experience in this market segment, where we help people achieve their financial goals.”
Underwriting the transaction was Truist acting as structuring agent and joint bookrunner; Jefferies, joint bookrunner; and Credit Suisse, Joint Bookrunner. The transaction structure features over-collateralisation, subordination, a reserve fund and excess spread. The issuance of all FCCF securitizations is now close to $3.5 billion and total lending through the FFAM platform is now exceeding $7.5 billion.
About Freedom Financial Network
Freedom Financial Network is a leading digital personal finance company. We do what traditional banks don’t do: put people first. Our solutions help everyday people get on and stay on the path to a brighter financial future with innovative technology and personalized support. Leveraging proprietary data and analytics, our solutions are tailored to each step of a consumer’s financial journey and include personal loans (FreedomPlus), home equity loans (loan), help with debt (Freedom Debt Relief) and even financial instruments and education (bills.com). Freedom Financial Network employs more than 2,300 dedicated employees California, Arizona and Texas and is recognized as Best place to work.
For information on career opportunities at Freedom Financial Network, please visit: https://jobs.freedomfinancialnetwork.com/
Over the Cross River Bank
Cross River is a fast-growing financial services company that combines the forward-thinking offerings of a technology company with the established expertise and traditional services of a bank. Since its inception in 2008, Cross River has developed strategic partnerships with leading technology companies, market lenders and payment providers, with a strong focus on regulatory compliance and consumer protection. Cross River offers a highly secure, API-based banking platform and a comprehensive suite of products spanning credit, payments, risk management and Banking-as-a-Service (BaaS) offerings to deliver responsible financial solutions that empower businesses and consumers anytime, anywhere . Cross River bank is a New Jersey federally licensed FDIC insured bank. For more information, visit Cross River’s website at www.crossriver.com or Twitter @crossriverbank.
About Meta Financial Group, Inc.®
Meta Financial Group, Inc.® (“meta”) is a South Dakota-based financial holding company. At Meta, our mission is financial inclusion for all®. Through our subsidiary MetaBank®, NA, we strive to remove barriers to access finance and promote economic mobility by partnering with third parties to provide responsible, safe, and high-quality financial products that deliver social and economic benefits to communities at the core of the real economy contribute. Meta works to increase financial availability, choice, and opportunity for all. See Visit for more information www.metafinancialgroup.com.
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SOURCE Freedom Financial Network