Marlette Funding Closes $369 Million Securitization Transaction
3rd MFT Securitization Furthers Establishment of the Company’s Securitization Program
Wilmington, DE – July 5, 2017 – Marlette Funding, LLC, a leading provider of online consumer lending platforms and services, announced it has closed its third securitization from its proprietary “MFT” shelf. Approximately $369 million of Best Egg unsecured personal loan collateral was financed via three classes of Notes and one class of Certificates with certain loan sellers retaining risk on a portion of the Certificates.
The transaction was significantly oversubscribed and successfully priced well inside the two previous Marlette sponsored offerings. In this transaction ratings for each of the offered Notes attained one higher category to AA (sf), A (sf) and BBB (sf), respectively, by Kroll Bond Rating Agency (KBRA). Underwriting the transaction were Goldman Sachs, who served as the structuring agent, Deutsche Bank and Citi.
“Our second transaction of the year was very well received and we are continuing to see the market recognize Marlette’s commitment to prudent underwriting, collateral consistency and good program management.” said Karan Mehta, Head of Capital Markets at Marlette Funding.
This transaction, in similar vein to MFT 2017-1, involved the sale of loans by Marlette and four other whole loan buyers who accessed the securitization markets via the MFT shelf. “MFT 2017-2 was a notable milestone for several reasons. We have maintained our quarterly issuance cadence in 2017 with our largest ever deal and have now provided all our active loan buyers with access to the securitization market via our shelf” said Paul Ricci, CFO at Marlette Funding. The transaction complied with the Dodd-Frank Act’s risk-retention requirement by utilizing a newly formed Majority Owned Affiliate owned by Marlette Funding, LLC.
Cross River Bank the originating bank for the Best Egg unsecured personal loan participated in Marlette’s prior securitization as well, and has also retained a meaningful proportion of Best Egg originations over the last three years. “Cross River Bank and Marlette have continued to collaborate on the MFT program and we are very pleased with the execution of this transaction and the spirit of cooperation between our firms” said Geoffrey Kott, Head of Finance and Corporate Strategy at Cross River Bank.
Marlette continues to thrive under its leadership team which has deep consumer finance and banking experience and a strong focus on compliance and business controls.
About Marlette Funding
Marlette Funding is a financial services technology company that is simplifying how consumers borrow money. Its team of consumer finance leaders developed and power the Best Egg personal loan product which can be used to consolidate debt and to finance purchases or services like home improvement or medical expenses. Through its streamlined online loan platform, qualified applicants can instantly review loan offers, select a loan and receive funds in as little as one day.
Since launching in 2014, Marlette has provided technology and services for over $3.6 billion in loans and served nearly 250,000 customers. Best Egg loans are issued by Cross River Bank. For more information, visit www.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