KBRA Assigns Preliminary Ratings to SoFi Consumer Loan Program 2019-2 Trust

Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by SoFi Consumer Loan Program 2019-2 (SCLP 2019-2). This is a $549 million consumer loan ABS transaction.

This transaction represents SoFi Lending Corp.s (SoFi or the Company) 18th rated securitization collateralized by a portfolio of unsecured consumer loans. SoFi currently originates personal loans through its state licenses or complies with certain requirements where a state lending license is not required.

Founded in 2011, SoFi is located in San Francisco, California and operates an online lending platform. Personal installment loans are offered to prime consumers through SoFis platform. Typical borrowers with loans securitized in this collateral pool, have a weighted average annual income of approximately $150,741, a weighted average FICO of 754 and a weighted average monthly free cash flow of $5,620. Loans typically have an original term between 36“84 months, an original balance ranging in size from $5,000 to $100,000 with fixed rates or variable rates depending on the borrowers risk profile and loan term. Borrowers are not charged an origination fee or any prepayment penalties on the loans. As of March 31, 2019, SoFi had originated approximately $14.7 billion in personal loans to 381,000 different prime quality borrowers.

SoFi finances loans on its balance sheet through its $2.9 billion multi-year warehouse capacity, through whole loan sales.

Initial credit enhancement levels are 31.46% for the Class A Notes, 25.46% for the Class B Notes, 16.46% for the Class C Notes and 8.96% for the Class D Notes. Credit enhancement consists of overcollateralization, subordination (in the case of the Class A Notes, Class B Notes and Class C Notes), excess spread and a reserve account funded at closing.

KBRA analyzed the transaction using the Consumer Loan ABS Rating Methodology published on March 28, 2017. KBRAs consumer loan methodology incorporates an analysis of: (1) the underlying collateral pool, (2) the originators historical static pool data, segmented by characteristics including credit quality and product type, (3) the proposed capital structure for the transaction, (4) KBRAs operational assessment of the originator and servicer and (5) the legal structure, transaction documents, and legal opinions.

In applying the methodology, KBRA analyzed SoFis static pool data and the underlying collateral pool. KBRA performed an operational review of SoFi at their Healdsburg, CA operations center and its servicing center in Utah. In addition, KBRA stressed the capital structure based on its stress case cash flow assumptions. KBRA will review the operative agreements and legal opinions for the transaction prior to closing.

To access ratings, reports and disclosures, click here.

Preliminary Ratings Assigned: SoFi Consumer Loan Program 2019-2

Class   Preliminary Rating   Class Principal
A   AAA (sf)   $414,000,000
B   AA+ (sf)   $36,000,000
C   A+ (sf)   $54,000,000
D   BBB (sf)   $45,000,000
   

Related Publications: (available at www.kbra.com)

CONNECT WITH KBRA

Twitter  LinkedIn  Download the iOS App  YouTube

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Analytical Contacts:
Eric
Neglia, Managing Director
(646) 731-2456
[email protected]

Jenny
Ovalle, Director
(646) 731-2309
[email protected]

Andrew
Silverhardt, Senior Analyst
(646) 731-2492
[email protected]

Rosemary
Kelley, Senior Managing Director
(646) 731-2337
[email protected]