SoFi Professional Loan Program 2017-E LLC's issuance is an ABS transaction backed by private student loans.


  • The approximately 20%-21% credit support available (including excess spread) based on our 'AAA' stressed break-even cash flow scenarios. These credit support levels provide coverage of approximately 6.7x our expected net loss in the 'AAA' stressed break-even cash flow scenarios. The turbo principal payment trigger was in effect in these break-even scenarios because our stress default rate assumption exceeds 4.0%.
  • The subordinate lockout trigger, which accelerates note principal repayments (i.e., a turbo principal payment trigger) if the cumulative default rate exceeds 4.0% of the initial pool balance, or if the rolling six-month average deferment and forbearance rate exceeds 8% of the current pool, or if the outstanding pool balance is less than 10% of the initial pool balance.
  • The pool characteristics of the initial portfolio loans as of the cut-off date, including a weighted average FICO score of 763, a weighted average gross income of $172,971, and a weighted average monthly free cash flow of $7,439. Free cash flow, as calculated by SoFi Lending Corp. at the time of loan origination, is defined as the obligor's income less debt payments and estimated expenses such as taxes and mortgage or rent payments. All of the above characteristics are reported at the time of loan application.
  • The characteristics of the additional portfolio loans the underlying trustee is expected to purchase from the sponsor pursuant to the loan sale agreement on the closing date. The additional portfolio loans will be purchased with the funds equal to the reduction in the initial portfolio loans' principal balance between the cut-off date and the day before the closing date, plus the aggregate principal amount of any initial portfolio loans to borrowers in counties that were declared major disaster areas due to Hurricanes Harvey and Irma and that are eligible for individual assistance, as shown on the Federal Emergency Management Agency's website as of the close of business on the day before the closing date. All of these loans will be removed from the initial portfolio loans. The sponsor does not expect that the credit characteristics of the loans purchased on the closing date to be materially different from the credit characteristics of the initial portfolio loans.
  • The initial class A overcollateralization of approximately 17.9%. Class A overcollateralization is defined as the excess of the asset balance over the class A note balance, divided by the asset balance. The asset balance includes the pool balance and class A reserve account balance but excludes the class B and C liquidity account balances.
  • The initial total overcollateralization of approximately 4.25%. Total overcollateralization is defined as the excess of the adjusted asset balance over the total note balance, divided by the adjusted asset balance. The adjusted asset balance includes the pool balance, the class A reserve account, and the class B and C liquidity accounts.
  • The transaction's fully sequential payment structure, which builds total overcollateralization for the class A, B, and C notes to the greater of 9.75% of the outstanding adjusted asset balance and 1.00% of the initial adjusted asset balance.
  • Detailed loan-level data, which allowed for a more in-depth analysis of the obligor characteristics.
  • Social Finance Inc.'s (SoFi's) experienced executive management team, which has knowledge of capital markets, credit and risk management, data analytics, and the regulatory regime surrounding private student loans.
  • Recent changes in SoFi's senior leadership, including the resignation of its chief financial officer and CEO in May 2017 and September 2017, respectively. At this point, we believe that these changes are unlikely to negatively affect the performance of this transaction or SoFi's other outstanding transactions we've rated. We will continue to monitor any developments with respect to these leadership changes.
  • While SoFi's original business model relied on accredited alumni and other individual investors to fund its loan originations (a "peer-to-peer" platform), SoFi now primarily funds itself with customary institutional and bank financing.
  • The moderately low level of expected servicing intensity given the collateral pool's strength.
  • The servicer, The Higher Education Loan Authority of the State of Missouri (MOHELA), a public instrumentality of the state of Missouri. MOHELA provides full-service private student loan servicing and federal loan servicing for its own student loans and those owned by third parties.
  • The timely interest and principal payments made on class A notes by the final maturity date in the cash flow runs that simulated our 'AAA' rating stress scenarios.
  • A scenario analysis, indicating that under moderately stressful economic conditions (defined as about 2.25x the expected defaults), the preliminary 'AAA (sf)' ratings would not decline more than one rating category in the first year, which is consistent with our credit stability criteria.