SoFi consumer loan ABS trust 2026-2 receives Fitch final ratings

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SoFi consumer loan ABS Fitch ratings

Highlights

SoFi Consumer Loan Program 2026-2 Trust received Fitch final ratings, supported by a pool with a 747 weighted average credit score and $158,403 income.
Fitch set a base case gross default assumption of 8.59% for the pool, reflecting 2022-2023 elevated managed default levels and early-stage 2023-2024 trends.
Initial hard credit enhancement stands at 31.67% for class A, 23.32% for class B, 14.89% for class C, and 8.66% for class D notes.

Pool quality and rating rationale

As reported by Fitch Ratings, the notes issued by SoFi Consumer Loan Program 2026-2 Trust receive final ratings and Rating Outlooks based on collateral quality, recent performance trends and available credit enhancement.

The pool is made up primarily of unsecured consumer loans to borrowers with strong credit profiles, including a weighted average credit score of 747 and weighted average income of $158,403. The loans are amortizing, carry a weighted average net interest rate of 12.90% and have a weighted average original term of 58 months. On a weighted average basis, the underlying loans have been seasoned for six months.

Fitch says its base case gross default assumption reflects weaker managed default performance in 2022 and persistently elevated levels in 2023 compared with earlier vintages since 2015. The agency also takes into account early-stage weakness in the 2023 vintage, alongside marginal improvement and signs of stabilization in the 2024 vintage, resulting in a base case gross default assumption of 8.59% for the pool.

Credit support and servicing implications

Initial hard credit enhancement totals 31.67% for class A notes, 23.32% for class B, 14.89% for class C and 8.66% for class D, levels Fitch considers sufficient to withstand its stressed cash flow assumptions across all classes. For the highest rating stress, Fitch applies a 4.5x multiple to the base case default rate, with lower stress multiples used at lower rating levels under its consumer ABS criteria.

The agency says the default multiple reflects the absolute default assumption, consistency of collateral characteristics, the length of historical default performance and recent variability that could expose the trust to weaker results under changing economic conditions. Fitch also views servicing arrangements as adequate, citing SoFi's operating history as an originator, underwriter and servicer since 2015, with backup servicing provided by Systems & Services Technologies, Inc.

In our earlier article on Mulligan Funding’s Series 2026-1 securitization, we covered how the lender packaged small and medium-sized business receivables into a $100 million notes offering with four classes and a 36-month revolving period. We also highlighted the deal’s expandable issuance feature (up to a $500 million maximum subject to conditions) and key investor terms such as partial call options and the ability to add receivables within eligibility and concentration limits.

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