SoFi's pool of consumer loans secures $690.3 million in ABS

SoFi Bank is returning to the securitization market to raise $690.3 million in asset-backed securities (ABS) collateralized by a pool of unsecured consumer loans.

The bank is sponsoring the deal, SoFi Consumer Loan Program Trust, 2025-2, which is coming to market through structuring lead Band of America, according to research firm Finsight. Goldman Sachs Group and JPMorgan Securities are joint leads, the company said. The deal is expected to close on June 13.

The transaction will sell notes through four tranches of class A, B, C and D notes, which all have a final maturity date of June 25, 2034, according to ratings analysts at Morningstar DBRS. After transaction fees, the notes will begin to repay interest sequentially, beginning with classes A and B, then principal payments sequentially, starting with classes A and B notes.

In addition to sponsoring the deal, SoFi was the loan originator and is administrator and servicer o the notes, DBRS said. System & Services Technologies is participating in the deal as backup servicer, the rating agency said.

The collateral pool is comprised of fixed-rate, unsecured consumer loans that fully amortize over set maturity terms. DBRS noted that about 90.5% of the 4,011 loans receive payment through Automated Clearing House, which boosts payment capture rates because the company does not need to manage cash payments.

Currently, the loans have an average balance of $19,934, with a remaining term of 20 months on a weighted average (WA) basis. Borrowers had a WA income of $179,588 and a WA credit score of 750, DBRS said.

SoFi Consumer Loan Program, 2025-2, includes a fully funded reserve account equal to 0.50% of the initial aggregate principal amount of the notes. There is also overcollateralization, which will initially be equal to 8.00% of the expected collateral pool balance.

In its analysis of the pool, DBRS finds that about 54.2% of the pool consisted of loans with an original balance of less than $50,000. Generally, loans with original balances of higher than $50,000 had WA free cash flow of 129.8% of the WA free cash flow for the entire pool.

DBRS assigned AAA, AA and A to classes A, B and C notes.