Freedom Financial Network Closes Sixth Securitization


Freedom Financial Network Closes Sixth Securitization

May 21, 2020

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— Oversubscribed securitization highlights strength of ConsolidationPlus

SAN MATEO, Calif., May 21, 2020 — FreedomFinancial Network (FFN), the parent company of FreedomFinancial Asset Management, has closed its sixth securitization, placing $188million of rated notes.

Thissecuritization, 1.6 times oversubscribed by investors, is the first to receive anAA rating from DBRS Morningstar, Inc. It also is the first securitization inwhich 100% of the collateral comes from ConsolidationPlus,an invitation-only program that offers debtconsolidation loans to eligible borrowers in select FFN debt restructuring programs.

Total securitization issue

Thislatest securitization brings total issuance across all six transactions to over$2 billion. FFN has originated more than $3.0 billion of FreedomPlus loans todate, and over $4.8 billion in total loans on itsFreedom Financial Asset Management (FFAM) platform.

Consistentwith its previous securitizations, announced over the past two years,underwriting this transaction were Credit Suisse, which served as the leadmanager and structuring agent, and SunTrust Robinson Humphrey, which served asa lead manager. In addition, this securitization is bringing in 15 unique investors.

The Class A, Class B and Class Cfixed-rate notes were rated AA (low) (sf), A (low) (sf), and BBB (low) (sf) byDBRS Morningstar, Inc. The Class A, Class B and Class C fixed-rate notes wererated A (+) (sf), BBB (sf) and BB (+)(sf) by Kroll.

“The strong reception in this extremely difficultCOVID environment reaffirms that our long-term strategy is viable for consumersand investors,” says Joseph Toms, president and chief investment officer ofFFAM. “Utilizing a thoughtfulcombination of technology and people to better ascertain risks, we are able tomeet continued demand as well as provide the individual service our customerswant and need.”

Nationalrecognition for customer service

LendingTree,the national online loan marketplace, recently recognized FFAM’s FreedomPlusprogram as a Top 3 personal loan lender in customer satisfaction for the firstquarter of 2020. FreedomPlus, whichprovides primarily debt-consolidation personal loans to prime and near-prime consumers,is a recipient of the recognition based on nearly 800 customer-submittedreviews with an average rating of 4.6 out of 5 stars and a 93% recommendationrate.

“Receiving this recognition is particularly gratifying atthis time,” says Toms.“Throughout FFAM, we are focused on navigatingthis challenging environment with an eye on long-term success. We have takenproactive measures to offset the increased risk, and we are further leveragingour unique business model of person-to-person customer contact to better assessborrowers and their financial situations.”

Tomsrefers to the FFN mission of empowering everyday people to move forward towarda better financial future. “The success of this securitization continues to letus zero in on our commitment to helping consumers improve theirfinancial health and wellness through a more robust and holistic assessment oftheir liabilities to lower the overall costs of these to them over the longterm.”

FFAM offers personal loansto help consumers consolidate their debt, lower interest rates and convertrevolving debt into lower-cost, more consumer-friendly installment loans. Usinga combination of process, technology and analytics, along with a focus on humaninteraction to hear directly from consumers about their financial needs, FFAMprovides long-term risk-adjusted returns for investors in consumerlending.