Freedom Financial Network closes $323m securitisation

Digital personal finance company Freedom Financial Network has closed a securitisation of $323m in rated notes backed by FreedomPlus personal loans.

It stated that this securitisation, FREED ABS Trust 2022-3FP, is the third Freedom deal to receive a AAA rating from DBRS and fifth to receive AAA rating from Kroll Bond Rating Agency.

This is the 13th securitisation by Freedom Consumer Credit Fund (FCCF), an investment fund managed by Freedom Financial Asset Management.

Underwriting for the FreedomPlus loan program is based on algorithms that evaluate behavioural, transactional, employment and income data, as well as a manual review of borrowers’ creditworthiness.

Underlying FreedomPlus loans were originated by bank partners Cross River Bank and MetaBank.

FreedomPlus claims to empower consumers to consolidate debt, lower interest rates and convert revolving debt into lower-cost, more consumer-friendly instalment loans.

FFAM senior vice president of capital markets Barry Rafferty said. “The characteristics of this securitisation should be very familiar to the market.

“One of the pillars of our ABS program is consistency in our product structure and cadence of new deals, and we believe this deal is an important demonstration of that reputation to the market.”

Last week, OppZo, which supplies SMEs with loans, closed a $260m funding round made of a mixture of debt and equity. The US-based company received the funds from Arcadia Funds.

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