A pool of unsecured, fixed-rate consumer loans that SoFi Bank originated will secure $460 million in asset-backed securities from the SoFi Consumer Loan Program, 2026-4 Trust.
SoFi Bank is preparing to sponsor the deal, which is slated to close on September 23 according to S&P Global Ratings. Analysts at Fitch Ratings also assessed the transaction, noting that J.P. Morgan Securities is the lead underwriter.
The transaction will sell the fixed-rate notes through a structure of four tranches, a senior class A tranche, and class B, C and D subordinate notes, which all have a legal final maturity date of Aug. 25, 2035, S&P and Fitch said.
Fitch notes that classes A, B, C and D have credit enhancement levels of 34.01%, 25.34%, 16.69% and 8.46%, respectively. For S&P's part, meanwhile, the rating agency said those levels of credit enhancement provide coverage of about 5.6x, 4.6x, 3.6x and 2.1x, respectively, of its base-case net loss rate of 7.6% in the AA, AA, A and BBB stressed, break-even cash flow scenarios.
Overcollateralization begins at 8.0%, which is expected to grow to its target level of 16.4% of the outstanding pool balance, and is subject to a floor of 1.00% of the initial pool balance for the life of the deal. This is a significant change from the previous overcollateralization target, 14.6%.
There is also a fully-funded , non-amortizing reserve account, which equals 0.5% of the initial note balance, S&P said.
When the deal closes, S&P said, SoFi will use a portion of the proceeds to fund an initial deposit into representing 0.50% of the note balance.
Fitch notes that the obligors on the underlying consumer loans have strong credit profiles. On a weighted average (WA) basis, the pool's credit score is 747, and a majority of underlying receivables, 52.90%, were taken out by borrowers with credit scores of at least 740.
Also, most borrowers, 61.2%, fall within SoFi Bank's highest tiers 1 and 2, and they have a WA income of $156,504.That's an improvement from their earnings on SCLP 2026-3.
Both Fitch and S&P assign AAA, AA, A and BBB to classes A, B, C and D, respectively.
