Agora Data closes industry-first crowdsourced securitization

Agora Data has closed the industry’s first-ever crowdsourced auto securitization, backed by loans originated from buy-here, pay-here lenders and dealers. The deal, which was an unrated private placement clocking in at under $100 million, served as a proof of concept for the company’s new crowdsourced securitization structure, Agora Chief Executive Steve Burke told Auto Finance News . The transaction sourced 20 different originators at dealers and small and mid-tier finance companies, with books of business ranging between $11,000 to $20 million, according to Burke. The deal closed Dec. 29, with Credit Suiss e acting as the lead book runner. Westlake Portfolio Management will service the loans on Agora Data’s behalf. Looking forward, Agora Data has its sights set on three deals this year to be rated by credit-rating agencies, Burke said. “We have over $400 million in our current pipeline of dealers and finance companies that would like to be in our next deal,” he said, noting that there is also about $1.05 billion of available inventory on their platform. Investor sentiment has been strong, Burke said, setting the stage for the company’s expansion. Agora Data is looking to double its staff to about 70 people, he added. Agora Data moves the loans from dealers of finance companies into a loan servicing vehicle, after which the loans sit there for 30- to 60-days to stabilize the servicing transfer, Burke explained. Then, the loans are securitized into the capital markets. “The models and the technology that Agora has developed to be able to do a crowdsourced securitization to even begin with, was very well received by Wall Street in the capital markets. And our AI and machine learning models — I would put them up against the largest of institutions,” Burke said. Arlington, Texas-based Agora Data was founded in 2017, and harnesses artificial intelligence and machine learning for predictive loan technology and modeling.

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TD Auto ranks highest in JD Power dealer satisfaction survey

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