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KBRA Assigns Preliminary Ratings to SoFi Consumer Loan Program 2019-4 Trust
[September 11, 2019]

KBRA Assigns Preliminary Ratings to SoFi Consumer Loan Program 2019-4 Trust

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by SoFi Consumer Loan Program 2019-4 Trust ("SCLP 2019-4"). This is a $465 million consumer loan ABS (News - Alert) transaction.

This transaction represents SoFi Lending Corp.'s ("SoFi" or the "Company") 20th-rated securitization collateralized by a portfolio of unsecured consumer loans. SoFi currently originates personal loans through its state licenses or complies with certain requirements where a state lending license is not required.

Founded in 2011, SoFi is located in San Francisco, California and operates an online lending platform. Personal installment loans are offered to prime consumers through SoFi's platform. Typical borrowers with loans securitized in this collateral pool, have a weighted average annual income of approximately $156,226 a weighted average FICO of 756 and a weighted average monthly free cash flow of $5,760. Loans typically have an original term between 24-84 months, an original balance ranging in size from $5,000 to $100,000 with fixed rates or variable rates depending on the borrower's risk profile and loan term. Borrowers are not charged an origination fee or any prepayment penalties on the loans. As of June 30, 2019, SoFi had originated approximately $15.5 billion in personal loans to 400,000 different prime quality borrowers.

SoFi finances loans on its balance sheet through its $3.0 billion multi-year warehouse capacity, through whole loan sales.

Initial credit enhancement levels are 28.47% for the Class A Notes, 22.57% for the Class B Notes, 13.07% for the Class C Notes and 7.47% for the Class D Notes. Credit enhancement consists of overcollateralization, subordination (in the case of the Class A Notes, Class B Notes and Class C Notes), excess spread and a reserve account funded at closing.

KBRA analyzed the transaction using the Consumer Loan ABS Rating Methodology published on March 28, 2017 and its Global Structure Finance Counterparty Methodology published on August 8, 2018. KBRA's consumer loan methodology incorporates an analysis of: (1) the underlying collateral pool, (2) the originator's historical static pool data, segmented by characteristics including credit quality and product type, (3) the proposed capital structure for the transaction, (4) KBRA's operational assessment of the originator and servicer and (5) the legal structure, transaction documents, and legal opinions.

In applying the methodology, KBRA analyzed SoFi's static pool data and the underlying collateral pool. KBRA performed an operational review of SoFi at their Healdsburg, CA (News - Alert) operations center and its servicing center in Utah. In addition, KBRA stressed the capital structure based on its stress case cash flow assumptions. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.

To access ratings, reports and disclosures, click here.

Preliminary Ratings Assigned: SoFi Consumer Loan Program 2019-4


Preliminary Rating

Class Principal


AAA (sf)



AA+ (sf)



A+ (sf)



BBB+ (sf)


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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

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