— Oversubscribed securitization highlights strength of ConsolidationPlus debt consolidation loans —
SAN MATEO, Calif., May 21, 2020 — Freedom Financial Network (FFN), the parent company of Freedom Financial Asset Management, has closed its sixth securitization, placing $188 million of rated notes.
This securitization, 1.6 times oversubscribed by investors, is the first to receive an AA rating from DBRS Morningstar, Inc. It also is the first securitization in which 100% of the collateral comes from ConsolidationPlus, an invitation-only program that offers debt consolidation loans to eligible borrowers in select FFN debt restructuring programs.
Total securitization issue
This latest securitization brings total issuance across all six transactions to over $2 billion. FFN has originated more than $3.0 billion of FreedomPlus loans to date, and over $4.8 billion in total loans on its Freedom Financial Asset Management (FFAM) platform.
Consistent with its previous securitizations, announced over the past two years, underwriting this transaction were Credit Suisse, which served as the lead manager and structuring agent, and SunTrust Robinson Humphrey, which served as a lead manager. In addition, this securitization is bringing in 15 unique investors.
The Class A, Class B and Class C fixed-rate notes were rated AA (low) (sf), A (low) (sf), and BBB (low) (sf) by DBRS Morningstar, Inc. The Class A, Class B and Class C fixed-rate notes were rated A (+) (sf), BBB (sf) and BB (+)(sf) by Kroll.
“The strong reception in this extremely difficult COVID environment reaffirms that our long-term strategy is viable for consumers and investors,” says Joseph Toms, president and chief investment officer of FFAM. “Utilizing a thoughtful combination of technology and people to better ascertain risks, we are able to meet continued demand as well as provide the individual service our customers want and need.”
National recognition for customer service
LendingTree, the national online loan marketplace, recently recognized FFAM’s FreedomPlus program as a Top 3 personal loan lender in customer satisfaction for the first quarter of 2020. FreedomPlus, which provides primarily debt-consolidation personal loans to prime and near-prime consumers, is a recipient of the recognition based on nearly 800 customer-submitted reviews with an average rating of 4.6 out of 5 stars and a 93% recommendation rate.
“Receiving this recognition is particularly gratifying at this time,” says Toms. “Throughout FFAM, we are focused on navigating this challenging environment with an eye on long-term success. We have taken proactive measures to offset the increased risk, and we are further leveraging our unique business model of person-to-person customer contact to better assess borrowers and their financial situations.”
Toms refers to the FFN mission of empowering everyday people to move forward toward a better financial future. “The success of this securitization continues to let us zero in on our commitment to helping consumers improve their financial health and wellness through a more robust and holistic assessment of their liabilities to lower the overall costs of these to them over the long term.”
FFAM offers personal loans to help consumers consolidate their debt, lower interest rates and convert revolving debt into lower-cost, more consumer-friendly installment loans. Using a combination of process, technology and analytics, along with a focus on human interaction to hear directly from consumers about their financial needs, FFAM provides long-term risk-adjusted returns for investors in consumer lending.