Freedom Financial Network Announces Closing of $324 Million Securitization of FreedomPlus Personal Loans
Transaction is Freedom’s third securitization of 2022 to receive AAA ratings from DBRS and Kroll
SAN MATEO, Calif., July 7, 2022 /PRNewswire/ — Liberty Financial Network (FFN), a leading digital personal finance company, announces the closing of a securitization transaction consisting of $323.55 million in rated notes backed by FreedomPlus personal loans.
The securitization, FREED ABS Trust 2022-3FP, is Freedom’s third transaction to receive a AAA rating from DBRS Morningstar and the fifth to receive a AAA rating from Kroll Bond Rating Agency (KBRA). The case is the 13e securitization by Freedom Consumer Credit Fund (FCCF), an investment fund managed by Freedom Financial Asset Management (FFAM).
Underwriting the FreedomPlus Loan Program is based on proprietary algorithms that assess behavioral, transactional, employment and income data, as well as a manual review of borrowers’ creditworthiness. The underlying FreedomPlus loans were issued by banking partners To cross river bank® and MetaBank®N / A on the FFAM platform. FreedomPlus Loans help consumers consolidate debt, reduce interest rates and convert revolving debt into cheaper, more consumer-friendly installment loans.
“The characteristics of this securitization should be very familiar to the market,” said Barry Rafferty, Director of Capital Markets at FFAM. “One of the pillars of our ABS program is the consistency of our product structure and the cadence of new deals, and we believe this deal is an important demonstration of that reputation in the marketplace.”
The Class A, Class B, Class C and Class D fixed rate bonds have been rated AAA (sf), AA- (sf), A- (sf) and BBB- (sf) by KBRA. The Class A, B and C Fixed Rate Notes have been rated AAA (sf), AA (sf) and A (sf) by DBRS Morningstar. The Class D Notes have not been rated by DBRS.
“FreedomPlus Loans are an important financial tool for consumers looking to consolidate unsecured debt,” said André Housser, co-founder and co-CEO of Freedom Financial Network. “We are pleased to continue our strategy of regular and programmatic securitizations, particularly given the considerable changes underway in capital markets and the economy in general.”
The collateral for the transaction was Credit Suisse, acting as structuring agent and joint bookrunner; Jefferies, co-editor of the book; and Truist Securities, associate bookrunner. The transaction structure includes overcollateralization, subordination, reserve fund and excess spread. Issues on all FCCF securitizations now total more than $3.8 billion and total loans issued through the FFAM platform now exceed $8 billion.
About Freedom Financial Network
Liberty Financial Network is a leading digital personal finance company. We do what traditional banks don’t: put people first. Our solutions help everyday people engage and stay on the path to a better financial future, through innovative technology and personalized coaching. Leveraging proprietary data and analytics, our solutions are tailored to every stage of a consumer’s financial journey and include personal loans (LibertyPlus), home equity loans (Ready), debt assistance (Debt Relief Freedom), and even financial tools and education (Bills.com). Freedom Financial Network has more than 2,300 dedicated employees across California, Arizona and Texas and is recognized as a Best place to work.
For more information on career opportunities at Freedom Financial Network, visit: https://jobs.freedomfinancialnetwork.com/
About Cross River Bank
Cross River is a rapidly growing financial services organization that fuses 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, while emphasizing regulatory compliance and consumer protection. Cross River provides a highly secure, API-based banking platform and comprehensive product suite spanning lending, payments, risk management and banking-as-a-service (BaaS) offerings to deliver responsible financial solutions that empower businesses and consumers anytime, anywhere. To cross river bank is a New Jersey state-chartered FDIC-insured bank. For more information, please visit the Cross River website at www.crossriver.com or Twitter @crossriverbank.
About Meta Financial Group, Inc.®
Meta Financial Group, Inc.® (“Meta”) (Nasdaq: CASH) is a South Dakotafinancial holding company. At Meta, our mission is financial inclusion for all®. Via our subsidiary, MetaBank®, NA, we strive to remove barriers to financial access and promote economic mobility by working with third parties to provide responsible, safe, and high-quality financial products that contribute to the social and economic benefits of communities at the heart of the real economy. Meta works to increase financial availability, choice and opportunity for all. Additional information can be found by visiting www.metafinancialgroup.com.
SOURCE Freedom Financial Network