Freedom Financial Network Announces Closing of $324 Million in FreedomPlus Personal Loan Securitization
The deal is the third Freedom securitization of 2022 to be rated AAA by both DBRS and Kroll
SAN MATEO, California., July 7, 2022 /PRNewswire/ — Freedom Financial Network (FFN), a leading digital personal finance company, announces the completion of a securitization of $323.55 million in rated debt obligations backed by FreedomPlus personal loans.
The securitization, FREED ABS Trust 2022-3FP, is the third Freedom Deal to receive a AAA rating from DBRS Morningstar and the fifth to receive a AAA rating from the Kroll Bond Rating Agency (KBRA). The deal is the 13thth Securitization by the Freedom Consumer Credit Fund (FCCF), an investment fund managed by Freedom Financial Asset Management (FFAM).
Underwriting for the FreedomPlus 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 FreedomPlus loans were originated by banking partners Cross River bank® and MetaBank®N / A on the FFAM platform. FreedomPlus loan Helping consumers consolidate debt, lower interest rates, and convert revolving debt into lower-cost, more consumer-friendly installment loans.
“The characteristics of this securitization should be very familiar to the market,” he said Barry Rafferty, senior vice president of capital markets at FFAM. “One of the pillars of our ABS program is the consistency of our product structure and the frequency of new business, and we believe this business is important evidence of that reputation in the marketplace.”
The Class A, B, C and D 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 (sf) by DBRS Morningstar. Class D grades were not graded by DBRS.
“FreedomPlus loans are an important financial tool for consumers looking to consolidate unsecured debt,” he said Andrew Hauser, Co-Founder and Co-CEO of Freedom Financial Network. “We are pleased to continue our strategy of regular, programmatic securitizations, particularly given the significant changes in capital markets and the broader economy.”
Undercover of the transaction was Credit Suisse, which acted as structuring agent and joint bookrunner; Jefferies, joint bookrunner; and Truist Securities, Joint Bookrunners. The transaction structure features over-collateralisation, subordination, a reserve fund and excess spread. The issuance of all FCCF securitisations has now ended $3.8 billion and total lending through the FFAM platform is now exceeding 8 billion dollars.
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, marketplace 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”) (Nasdaq: CASH) 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.
SOURCE Freedom Financial Network