SIOUX FALLS, S.D.--(BUSINESS WIRE)--ReliaMax®, the complete private student lending solutions provider for banks, credit unions and alternative lenders, today announced at the 23rd Annual ABS East 2017 Conference a new whole loan trading service, ReliaMax Portfolio Placement, as an extension of its existing capital markets and liquidity programs. The ReliaMax Portfolio Placement service will facilitate qualified existing private student whole loan portfolios for sellers and buyers.
“We’re very excited to introduce the ReliaMax Portfolio Placement service to extend and build out our existing capital markets and liquidity programs for private student loans,” says Michael VanErdewyk, CEO of ReliaMax. “While ReliaMax has provided whole loan trading services to our existing bank and credit union origination partners since 2009, portfolios originated under different platforms have not been actively cultivated.”
The ReliaMax Portfolio Placement service provides unique value to the private student lending marketplace in multiple ways including insurance, default prevention, credit analysis, and servicing. Some benefits include:
- State-of-the-art servicing through ReliaMax helps buyers maximize the value of their portfolio, providing compliance and regulatory support and staffing to manage student loan-specific servicing requirements.
- Loan insurance through ReliaMax Surety Company covers 100% principal and interest and mitigates risks, reduces defaults, and provides better cash flow.
- Portfolio review and credit analysis provides guidance around the price at which the portfolio might transact.
ReliaMax has been involved in many third-party portfolio transactions. For example, in December 2106, MetaBank acquired a $151 million student loan portfolio which ReliaMax Surety Company now insures. The transaction also included the conversion of the portfolio servicing onto the ReliaMax Platform. Over the last three years, ReliaMax has provided insurance and/or servicing on 12 portfolio placement transactions.
Spearheading this new program will be Steve Pachella, formerly Vice President of Capital Markets for ReliaMax, who was named to the newly created role of Vice President, Head of Capital Markets, reporting directly to VanErdewyk.
“The third-party facilitated trades such as MetaBank have been brought to us by great partners who we will continue to work with. With this new service, we will leverage Steve’s experience to focus on much larger opportunities in the secondary market and assist with both sides of the trade,” says VanErdewyk.
“This is a fantastic opportunity for ReliaMax to leverage its expertise in the private student loan space and make a market, which has been requested by our clients for years,” says Pachella. “By sourcing buyers and sellers of whole loan portfolios available for sale, providing credit work based on our 30 years of performance history across more than $15 billion of loans insured, and attaching an insurance guarantee, we can assist buyers and sellers in managing their private student loan assets and create a smoother trading process.”
Pachella joined ReliaMax in 2015. He brings more than 17 years and over $20 billion of transaction experience to ReliaMax.
About ReliaMax
ReliaMax has redefined profitable private student lending for over 475 banks, credit unions, alternative lenders and investors. Through its complete Private Student Loan Platform-as- a-Service solution which includes program administration, borrower acquisition, origination, servicing, portfolio liquidity, and insurance*, provided by ReliaMax Surety Company. ReliaMax enables lenders to quickly, easily and safely help student borrowers realize their education goals. For more information, ReliaMax.com.
*ReliaMax Surety Bonds are not available in California.
