Oportun Consolidates Larger Consumer Loans In Upcoming $ 250 Million ABS


The third consumer loan securitization of Opportun Financial Corp. of the year has higher balances and less seasonality.

The $ 250 million Oportun Funding X Series 2018-C transaction, a pool of unsecured consumer loans to low-income and underserved borrowers, includes 86,321 accounts with an average initial balance of $ 3,049 that have aged an average of four months.

In recent Oportun trades, the loan size range was $ 2,142 to $ 2,598, with a weighted average seasoning of five to six months.

Factors behind the larger loan sizes include the larger collection of loan renewals (80.3% of the pool) on the Opportunity shelf, many of which represent accounts from past borrowers who qualify for loans. larger loans through the “good customer” program for the business due to previous on-time payment activity.

The transaction is backed by $ 263.1 million in unsecured consumer loans and includes four classes of notes. The capital stack includes $ 184.2 million Class A notes with a preliminary A + rating from the Kroll Bond rating agency, and backed by a 30% credit boost.

The agreement is the 12 of Opportunitye global securitization, and is expected to close on October 22.

The transaction has a three-year renewal period, during which the issuer can add newly issued qualifying loans generated through its operational footprint in 12 states. Oportun includes retail storefronts in eight states (mostly in California and Texas), as well as new mobile origins active in four states.

The loan ranges go from $ 300 to $ 9,090, with terms ranging from six to 43 months.

Oportun Financial, based in San Carlos, Calif., Provides unsecured installment loans to borrowers with low credit scores, who have limited track records, or who are “badly rated” – borrowers whom the company deems to be eligible. credit that exceeds what their traditional credit scores indicate.

The company is recognized as a non-profit community development financial institution, with a mission to provide financial services in underserved and low to moderate income communities. Oportun provides affordable credit to underserved populations at lower interest rates than other financing alternatives, such as payday loans, for targeted groups of borrowers.

Since 2005, the company has raised more than $ 266 million in equity and $ 2.4 billion in debt. The company also has a $ 300 million warehouse line and a total loan facility of $ 260 million to provide additional financing outside the securitization channel, according to Kroll.

The company is run by former executives from Walmart.com, MRU Holdings and HSBC Card Services.

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