Freedom Financial Network Closes Seventh Securitization

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Third deal of year receives AA- rating from Kroll in volatile capital market

Freedom Financial Network, parent of Freedom Financial Asset Management, is a family of companies providing innovative solutions that empower people to live healthier financial lives.

Freedom Financial Network, parent of Freedom Financial Asset Management, is a family of companies providing innovative solutions that empower people to live healthier financial lives.

We know that what we are doing is working. We will continue to plot a course through the current turbulent economic environment by maintaining focus on long-term success, and managing short-term operations thoughtfully and carefully.

Freedom Financial Network (FFN), the parent company of Freedom Financial Asset Management, has closed its seventh securitization, placing $198 million of rated notes.

This securitization – the third in 2020 – is the first to receive an AA- rating from Kroll, adding to the AA- rating received from DBRS Morningstar, Inc., in the last transaction. Consistent with its previous securitizations, underwriting this transaction were Credit Suisse, which served as the lead manager and structuring agent, and SunTrust Robinson Humphrey, which served as joint bookrunner. In addition, this securitization is bringing in five new investors.

The Class A, Class B and Class C fixed-rate notes were rated A (high) (sf), A (low) (sf), and BB (low) (sf) by DBRS Morningstar. The Class A, Class B and Class C fixed-rate notes were rated AA (-) (sf), BBB (sf) and BB (sf) by Kroll.

Continued strong demand in challenging market
“We have seen extremely strong investor demand during a historically volatile and challenging economic and capital markets landscape,” says Joseph Toms, president and chief investment officer of Freedom Financial Asset Management (FFAM).

Issuance across all seven FFN transactions now totals more than $2.2 billion. FFN has originated more than $3.1 billion of FreedomPlus loans to date, and more than $5.0 billion in total loans on its FFAM platform.

In addition, recent FINSIGHT league tables for unsecured consumer and marketplace personal loan asset-backed securities issuances rank FFN second over the trailing 12 months. “We are extremely gratified by this strong showing in the league tables. It clearly demonstrates the significance of our lending business to FFN’s overall businesses, and our ability to meaningfully and consistently attract investor capital throughout different environments,” says Toms.

“While many folks may better know some of our public competitors, this continued type of showing will inevitably lead to stronger and stronger market recognition,” he continues. “We know that what we are doing is working. We will continue to plot a course through the current turbulent economic environment by maintaining focus on long-term success, and managing short-term operations thoughtfully and carefully.”

Achieving lower risk through better borrower assessment
Toms cites FFAM’s business model combining technology with person-to-person customer contact as a key factor for the company’s success. “This balance allows us to better assess borrowers and their financial situations, ultimately resulting in lower risk and better consumer outcomes,” he explains. “The success of this securitization puts a stamp on our company’s mission to empower Americans to move forward toward a better financial future.”

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.

Freedom Financial Network (http://www.freedomfinancialnetwork.com)
Freedom Financial Network is a family of companies providing innovative solutions that empower people to live healthier financial lives. For people struggling with debt, Freedom Debt Relief offers a custom program to significantly reduce and resolve what they owe more quickly than they could on their own. FreedomPlus tailors personal loans to each borrower with a level of customer service unmatched in the industry. For consumers enrolled in qualifying debt relief programs, ConsolidationPlus offers loans that accelerate debt settlements and enable them to be free of the debts sooner. Bills.com offers a resource site with simple tips, advice and tools to help consumers make smart financial decisions.

Headquartered in San Mateo, California, FFN also operates an office in Tempe, Arizona. The company employs more than 2,200, and has been voted one of the places to work in both the San Francisco Bay Area and Phoenix area for several years.

Contact: Michael Micheletti, mmicheletti@freedomfinancialnetwork.com, 415-359-6985

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