Marlette Funding Closes $333 Million Securitization Transaction
2nd MFT Securitization Furthers Recognition of Company’s Positive Credit Trends
Wilmington, DE – March 24, 2017 – Marlette Funding, LLC, a leading provider of online consumer lending platforms and services, announced today it closed its second proprietary “MFT” securitization. Approximately $333 million of Best Egg collateral was financed via three classes of Notes and one class of Certificates with certain loan sellers retaining risk on a portion of the Notes and/or Certificates.
The transaction was significantly oversubscribed and successfully priced which was based upon Marlette’s differentiated product offering and superior credit trends. Underwriting the transaction were Goldman Sachs, who served as the structuring agent, Deutsche Bank and Citi. The Class A, B and C fixed-rate Notes were rated A (sf), BBB (sf) and BB (sf), respectively, by Kroll Bond Rating Agency (KBRA).
“After a year of market uncertainty, I am proud that Marlette Funding has continued to shine and that the investment community rewards our prudent underwriting practices and measured growth tactics,” said Paul Ricci, CFO at Marlette Funding.
The “MFT” securitization is yet another significant milestone for the company, and a cornerstone of its long-term capital strategy. The transaction involved the sale of loans by Marlette and four other whole loan buyers who accessed the securitization markets via Marlette’s effective creation and management of the MFT shelf. The transaction was also notable for complying with the Dodd-Frank Act’s risk-retention requirement by utilizing a jointly sponsored entity comprised of Marlette and the originating bank, Cross River Bank.
The first MFT securitization of loans originated by Cross River Bank using Marlette Funding’s loan platform, was underwritten by Goldman Sachs and Citi in August 2016 and included approximately $205 million of Best Egg collateral. The Citi sponsored CHAI 2016-MF1 transaction (using Best Egg collateral) which closed in March 2016 recently had the Class A and Class B notes upgraded to AA (sf) and BBB+ (sf) respectively by KBRA.
“The executive team at Marlette Funding has again demonstrated the depth of their experience and the meaningful value they bring to markets and, most importantly, their customers – the borrowers who benefit from efficient and innovative access to capital and funding,” said Geoffrey Kott, Head of Capital Markets and Strategy at Cross River. “We are grateful for the opportunity to continue strengthening this relationship, which demonstrates the effective integration of finance and technology with best practices in risk management and regulatory compliance.”
The company continues to thrive under its leadership team which has deep consumer finance and banking experience and a strong focus on compliance and business controls. Marlette’s loan platform has sourced and serviced more than $3B Best Egg loans for Cross River Bank since its inception in March of 2014.
About Marlette Funding
Marlette Funding is a next generation financial services company that simplifies how consumers borrow money. Our online personal loan platform enables qualified applicants to see loan offers in as little as 3 seconds and receive funds as soon as the next day. The first lending product on this platform, the Best Egg unsecured personal loan, has originated over $3 Billion since launching in March 2014.
Marlette also provides leading edge marketing, credit, funding and operational services to our bank partners. The team at Marlette is steeped in consumer finance experience and practiced in using technology to create an extraordinary customer experience. They combine sophisticated marketing, high quality underwriting and a flexible technology platform to produce best-in-class outcomes for borrowers, lenders, investors and partners.
Contact us for more details or how we can help your organization offer personal loans to your customers at email@example.com. For more information, visit marlettefunding.com
About Cross River
Cross River is a New Jersey State Chartered FDIC-insured bank. Cross River has developed strategic partnerships with financial technology leaders to build fully compliant and integrated solutions for the marketplace lending and payment processing arenas. Cross River was named Most Innovative Bank at LendIt 2017. www.crossriverbank.com