Sallie Mae will issue a $976 million securitization of private student loans.
Moody's Investors Service has assigned a provisional ratings of 'Aaa' to three classes of senior notes to be issued under SLM Private Education Loan Trust 2012-E. The capital structure includes two tranches of floating rate notes and one fixed rate tranche.
The deal will be sold in the 144A market. Sallie Mae last came to market in July this year with a $640mn deal.
Formerly of Wells Fargo, she will coordinate several key units to create a structure for a sustained capital markets program that capitalizes on recent innovation and growth in home equity finance.
The Structured Finance Association questions whether funding closed-end seconds is an appropriate role for the government-sponsored enterprise, while newer lenders welcome the liquidity support.
The CFPB has dissolved the Office of Supervision, Enforcement and Fair Lending and eliminated the job of associate director in a move that impacts how it designates nonbanks for supervision.
The bank is a top auto lender, with a managed portfolio of $7.1 million through December 2023, and has a strong servicing track record.
The initial protection amount, Moody's says, is 12.5% of the total reference pool and equals the principal amount of the rated and unrated issued notes.
Net charge-offs at the Charlotte, North Carolina-based bank increased by more than 80% in the first quarter compared with a year earlier. BofA executives say that the rising losses were in line with the bank's risk appetite.
