SoFi Lending Corp. is marketing its second student loan securitization of the year.
The deal, SoFi 2017-B, is the sponsor’s 14th rated offering backed by loans used to refinance the student debt of borrowers with advanced degrees and high incomes.
Similar to the sponsor's last several deals, there are two fixed-rate senior tranches rated AAA by DBRS; one, $189.97 imllion tranche of "backpay" notes will not receive any principal until the other, $225.27 million tranche of "front pay" notes is paid in full.
There are also two subordinate tranches, one for $26 million rated AA and another for $20.25 million rated A. In addition, the trust will issue an unrated tranche of certificates.
All of the notes have a legal final maturity of May 2040, but the frontpay senior notes will amortize more quickly than the other tranches. To build additional credit support early in the transaction, 100% of funds remaining after paying senior transaction fees, note interest and shortfall carry-over amounts will be used to pay principal on the senior notes.
The Higher Education Loan Authority of the State of Missouri is the transaction's servicer.
According to DBRS, SoFi 2017-B exhibits high-quality attributes in borrower credit. The portfolio contains a weighted-average credit score of 770. Additionally, the student loans have a weighted-average borrower income of $168,673 and a weighted-average borrower monthly free cash flow after expenses of $7,188.
SoFi 2017-B borrowers earn $1,587 less than borrowers in the previous transaction, completed in January, but have $100 more monthly free cash flow.
As of December 31, 2016, SoFi had originated approximately $9.2 billion in Refinancing Loans to approximately 110,000 different borrowers, with only 182 Refinancing Loans that had ever been 60 or more days delinquent, and from inception through that date, SoFi had charged off only $5.7 million of its refinancing Loans.