OneMain Financial has issued the inaugural auto loan securitization for Springleaf Finance Corp., backed by $400 million of subprime auto loans, according to a presale report from S&P Global Ratings, released yesterday.
The ODART 2016-1 trust, which has an average seasoning of eight months, is comprised of used vehicles — 99.79% — and 75% of the auto loans have a Fico lower than 650, or no score. The pool’s weighted average Fico is 609.
Springleaf Holdings acquired OneMain in November 2015 from CitiFinancial Credit Co., a wholly owned subsidiary of Citigroup for $4.49 billion in cash.
Springleaf’s primary focus is providing consumers with refinancing products with or without additional cash, according to S&P. “This makes Springleaf unique compared to other auto loan ABS issuers. The company offers four products in the direct auto segment: refinance with cash out, free and clear, purchase, and refinance,” S&P wrote in the report.