NEW YORK–(BUSINESS WIRE)–KBRA assigns a preliminary rating to a single class of notes issued by SoFi Consumer Loan Program 2022-1S Trust (“SCLP 2022-1S”), a consumer loan asset-backed securities transaction of 440.0 millions of dollars. Credit enhancement includes overcollateralization, cash reserve account and excess spread. SCLP 2022-1S has an initial credit enhancement level of 26.98% for Class A bonds.
SoFi Lending Corp. (“SoFi”, the “Sponsor” or the “Company”) is a California-based consumer finance company that was established in 2012 as a wholly owned subsidiary of Social Finance, Inc. Social Finance, Inc. was created in May 2011 by Stanford Graduate School of Business alumni to refinance private student loans for graduate students. Since then, the Company has refined its student loan model for high credit quality borrowers and expanded its product offering to include personal loans, credit cards, mortgages, investments and banking services. The Company’s premier personal credit product was launched in 2015.
SoFi Personal Loans are unsecured fixed rate consumer loans with initial principal balances ranging from $5,000 to $100,000 and initial terms ranging from two years to seven years. As of the cut-off date of October 16, 2022 (“cut-off date”), the collateral pool supporting the transaction has a weighted average term of 27 months, a weighted average initial term of 61 months and a weighted average remaining term. of 34 months. In addition, at the date the loan was granted, the debtors had a weighted average annual income of $160,634, a weighted average credit rating of 753 and a monthly free cash flow (“FCF”) of $6,207. SoFi does not charge set-up fees or prepayment penalties on any of its products.
KBRA applied its global ABS rating methodology for consumer loans, as well as its global structured financial counterparty methodology and its global ESG rating methodology as part of its analysis of the underlying collateral pool of the transaction, the proposed capital structure and historical data of SoFi’s static pool. KBRA reviewed its operational review of SoFi as well as periodic update calls with the company. Operational agreements and legal opinions will be reviewed prior to closing.
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