Freedom Financial Network Closes Fifth Securitization, Four Times Oversubscribed

Share Article

Latest securitization highlights strength of FreedomPlus personal loans.

Freedom Financial Network is a family of companies providing innovative solutions that empower people to live healthier financial lives. FreedomPlus tailors personal loans to each borrower with a level of customer service unmatched in the industry.

Freedom Financial Network

For the first time, fully 100% of the collateral has come from FreedomPlus, which provides primarily debt-consolidation personal loans to consumers.

Freedom Financial Network (FFN), the parent company of Freedom Financial Asset Management, has closed its fifth securitization, placing $324 million of rated notes, four times oversubscribed by investors.

The securitization highlights the continued shift of the loan mix towards FFN’s growing FreedomPlus program. For the first time, fully 100% of the collateral has come from FreedomPlus, which provides primarily debt-consolidation personal loans to consumers.

Total securitization issue
The company’s latest securitization brings its total issuance across all five transactions to more than $1.9 billion. FFN has originated more than $2.7 billion of FreedomPlus loans to date and over $4.4 billion in total loans on its Freedom Financial Asset Management (FFAM) platform.

Consistent with its previous securitizations, announced in 2018 and 2019, underwriting the most recent transaction were Credit Suisse, which served as the lead manager and structuring agent, and SunTrust, which served as a joint book runner. In addition, this securitization is bringing in 29 unique investors.

The Class A, Class B and Class C fixed notes were rated A3 (sf), Baa3 (sf) and Ba3 (sf) by Moody’s. The Class A, Class B and Class C fixed-rate notes were rated A (high) (sf), BBB (high) (sf) and BB (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.

Groundbreaking market differentiators
“The market differentiators we have created and put in place for FreedomPlus are driving our continued success,” says Joseph Toms, president and chief investment officer at FFAM. “From the start of the FreedomPlus program in 2013, it has made loan payments directly to creditors to provide consumers with convenience as well as the financial discipline to become debt-free. FreedomPlus was the first lender in the industry to offer this program, facilitating debt consolidation and payoff for consumers.”

Today, approximately 70% of FreedomPlus loans leverage this ability to pay creditors directly, by far the highest percentage in the industry, according to Toms. The FreedomPlus program also offers discounts to applicants with a co-borrower and for those with more than $40,000 in retirement funds.

“The success of this securitization, with 100% FreedomPlus collateral, demonstrates the compelling nature of Freedom’s growing product suite. It serves as one more point of confirmation that we have created a solid, long-term lending platform that works for both consumers and investors,” says Toms. “With transactions such as these, we can look forward to a long road of helping consumers improve their financial health and wellness.”

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 2,400 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

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Michael Micheletti
Visit website