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Why BTIG Is Concerned About Loan Losses
According to Caintic, recent data suggests that some of SoFi’s newer loans are experiencing higher losses than expected. While the trend does not pose an immediate threat to the company, it could make investors more cautious about buying loans from SoFi in the future.
That matters because SoFi regularly sells loans to outside investors. If buyers expect higher losses, they may demand better terms, which could reduce the profit SoFi earns from those sales.
The analyst also pointed out that recent loan-performance trends at Upstart (UPST) and Affirm (AFRM) have been stable or improving, while SoFi’s newer loans continue to show higher loss rates.
