Deal is the third Freedom securitization of 2022 to
receive AAA ratings from both DBRS and Kroll
SAN
MATEO, Calif., July 7, 2022
/PRNewswire/ -- Freedom Financial Network (FFN), a leading
digital personal finance company, announces the closing of a
securitization consisting of $323.55
million in rated notes backed by FreedomPlus personal
loans.
The securitization, FREED ABS Trust 2022-3FP, is the third
Freedom deal to receive an AAA rating from DBRS Morningstar and the
fifth to receive a AAA rating from Kroll Bond Rating Agency (KBRA).
The deal is the 13th securitization by 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 review of
borrowers' creditworthiness. The underlying FreedomPlus loans were
originated by bank partners Cross River
Bank® and MetaBank®, N.A. on the FFAM
platform. FreedomPlus loans help 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," said Barry
Rafferty, Senior Vice President of Capital Markets at FFAM.
"One of the pillars of our ABS program is consistency in our
product structure and cadence of new deals, and we believe this
deal is an important demonstration of that reputation to the
market."
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 (sf) by DBRS Morningstar. The D class notes were not
rated by DBRS.
"FreedomPlus loans are an important financial tool for consumers
seeking to consolidate unsecured debt," said Andrew Housser, Co-Founder and Co-CEO of Freedom
Financial Network. "We are pleased to continue our strategy of
regular, programmatic securitizations, particularly given the
considerable shifts underway in the capital markets and economy
overall."
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. Issuance across all FCCF securitizations
now totals over $3.8 billion and
total loan originations through the FFAM platform now exceed
$8 billion.
About Freedom Financial
Network
Freedom Financial Network is a leading digital personal
finance company. We do what traditional banks don't: 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. By leveraging proprietary data and analytics,
our solutions are tailored for each step of a consumer's financial
journey and include personal loans (FreedomPlus), home equity loans
(Lendage), help with debt (Freedom Debt Relief), 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 information on career opportunities at Freedom Financial
Network, 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