Freedom Financial Network Closes Sixth Securitization, 1.6 Times Oversubscribed

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Securitization highlights strength of ConsolidationPlus debt consolidation loans

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

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

The strong reception in this extremely difficult COVID environment reaffirms that our long-term strategy is viable for consumers and investors.

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.

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

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