SAN MATEO, Calif., Jan. 26, 2022 /PRNewswire/ -- Freedom
Financial Network (FFN), a leading digital personal finance
company, is pleased to announce the closing of a securitization
consisting of $232.89 million in
rated notes backed by FreedomPlus personal loans.
The securitization, FREED ABS Trust 2022-1FP, was 3.5 times
oversubscribed by investors and is the first Freedom deal to
receive an AAA rating from DBRS Morningstar and the third to
receive a AAA rating from Kroll Bond Rating Agency (KBRA). The
underlying FreedomPlus loans were originated by bank partners Cross
River Bank® and
MetaBank®, N.A. on the Freedom Financial Asset
Management (FFAM) platform. FreedomPlus loans help consumers
consolidate debt, lower interest rates and convert revolving debt
into lower-cost, more consumer-friendly installment loans.
"Receiving AAA ratings from two credit-ratings agencies
illustrates the strength of our robust credit enhancements and
FFAM's unique expertise with FreedomPlus personal loans," said
Joseph Toms, president and chief
investment officer of FFAM. "We look forward to continuing to help
consumers achieve their personal financial goals, while also
providing compelling products to investors."
The Class A, Class B, Class C and Class D fixed-rate notes were
rated AAA (sf), AA- (sf), A- (sf) and BBB- (sf) by KBRA. The Class
A, Class B and Class C fixed-rate notes were rated AAA (sf), AA
(sf) and A (low) (sf) by DBRS Morningstar. The D class notes were
not rated by DBRS.
"This transaction validates that we are succeeding in our
mission of helping everyday people overcome debt and improve their
financial outlook," said Andrew
Housser, co-founder and co-CEO of FFN. "We are encouraged by
the strong demand from consumers and investors alike for our unique
products and approach."
Underwriting the transaction was Credit Suisse, serving as
structuring agent and joint book runner; Jefferies, joint book
runner; and Truist Securities, joint book runner. The transaction
structure features overcollateralization, subordination, a reserve
fund and excess spread, offering the following levels of credit
enhancement:
Class A Notes: 58.75%
Class B Notes: 37.75%
Class C Notes: 28.25%
Class D Notes: 15%
The deal is the 11th securitization from Freedom Consumer Credit
Fund (FCCF) and its FREED ABS Trust, bringing total issuance across
all securitizations to more than $3.2
billion. Total loan originations through the FFAM platform
now exceed $6.1 billion, including
more than $4.5 billion in FreedomPlus
personal loans. FFAM, an FFN company, is the managing member of
FCCF.
About Freedom Financial Network
Freedom Financial
Network is a leading digital personal finance company, built
to help people. We do what traditional banks don't: Put people
first. We believe in treating people like humans, not account
numbers. We help everyday people get on, and stay on, the path to a
brighter financial future, with innovative technology and
personalized support at every step. We help people control
expenses, manage debt (Freedom Debt Relief), save money, plan
ahead, and make better financial decisions. By leveraging our
proprietary data and analytics, and artificial intelligence we are
able to offer solutions tailored for each step of a consumer's
financial journey, including personal loans, home equity loans,
help with debt, and even financial tools and education
(Bills.com).
For information on career opportunities at FFN, visit:
https://jobs.freedomfinancialnetwork.com/
About Cross River Bank
Cross River is a fast-growing
financial services organization that merges the forward-thinking
offerings of a technology company with the established expertise
and traditional services of a bank. Since its founding in 2008,
Cross River has developed strategic partnerships with leading
technology companies, marketplace lenders and payment providers,
while maintaining a strong focus on regulatory compliance and
consumer protection. Cross River provides a highly secure,
API-based banking platform and comprehensive suite of products
encompassing lending, 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 state-chartered FDIC
insured bank. For more information, please 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®,
N.A., we strive to remove barriers to financial access and promote
economic mobility by working with third parties to provide
responsible, secure, high quality financial products that
contribute to the social and economic benefit of communities at the
core 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.
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SOURCE Freedom Financial Network