The transaction is the 12th Freedom securitization and brings total issuance to nearly $3.5 billion
SAN MATEO, Calif., April 7, 2022 /PRNewswire/ — Liberty Financial Network (FFN), a leading digital personal finance company, announces the closing of a securitization transaction consisting of $204.93 million in rated notes backed by ConsolidationPlus personal loans.
The securitization, FREED ABS Trust 2022-2CP, is Freedom’s second transaction to receive a AAA rating from DBRS Morningstar and the fourth to receive a AAA rating from Kroll Bond Rating Agency (KBRA). It is also the first ConsolidationPlus loan securitization to receive AAA ratings from two rating agencies. The case is the 12and securitization by Freedom Consumer Credit Fund (FCCF), an investment fund managed by Freedom Financial Asset Management (FFAM).
Underwriting the ConsolidationPlus 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 ConsolidationPlus loans were issued by banking partners To cross river bank® and MetaBank®N / A on the FFAM platform. ConsolidationPlus Loans help borrowers speed up the process of settling unsecured debt. The loans are offered exclusively to clients of Freedom Debt Relief (FDR) and certain other debt resolution companies who have been enrolled in a debt program for at least six months and have made timely payments to their dedicated accounts. .
“The successful issuance of this securitization at such a difficult time in the broader financial market is a testament to the robustness of the underwriting and credit risk models used to create the ConsolidationPlus loans,” said Barry Rafferty, Director of Capital Markets at FFAM. “We are delighted to have once again achieved AAA ratings from two credit rating agencies and look forward to continuing this positive trajectory in future transactions.”
The Class A, Class B, Class C and Class D fixed rate obligations 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 (high) (sf) by DBRS Morningstar. The Class D Notes have not been rated by DBRS.
“ConsolidationPlus Loans are an important way to help consumers deal with debt as they seek to embark on a path to a better financial future,” said Andrew Husser, co-founder and co-CEO of Freedom Financial Network. “Completing this transaction at a time when several other issuers have reached deals due to the volatile economic and geopolitical climate highlights our expertise and experience in this market segment where we help everyday people achieve their financial goals. “
The collateral for the transaction was Truist, acting as structuring agent and joint bookrunner; Jefferies, co-editor of the book; and Credit Suisse, joint bookrunner. The transaction structure includes overcollateralization, subordination, reserve fund and excess spread. Issues on all FCCF securitizations now total nearly $3.5 billion and total loans issued through the FFAM platform now exceed $7.5 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.
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”) 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