Selling on LoanStreet

From Registration to Reporting, the following sections will help guide you through the process of selling loans on LoanStreet’s Participation Platform including: building your pool, launching the deal on the LoanStreet Marketplace, closing the deal and all ongoing monthly investor reporting.

Throughout the selling process LoanStreet’s Trading, Reporting Operations, and Customer Success teams will provide support and assistance to ensure a successful loan participation sale.

Table of Contents

Getting Started on LoanStreet

Accessing the Platform

Building Your Pool 

Launching Your Pool

Closing Your Pool

Reporting on Your Pool

Reporting on Off-Platform Loan Participations

Performance Analytics

  • Click here to download all agreements and registration documents.
  • Return the Registration Documents (including a copy of your W-9) to registration@loan-street.com
  • You will receive an invitation email to set up your platform password. Once set, you will be able to login and manage other users at your Institution.
  • Please use this Knowledge Base article to assist you in setting up additional users.

Provide Loan Extracts

Detailed Loan Data (Tapes) are to be delivered to the Trading team to review, price and load into the system before launching the deal. Loan Data Files can be uploaded via the LoanStreet Data Room. 

Please refer to our Loan Data Upload Spec and Sample Loan Data Files by Asset Type when putting together your loan data.

After uploading, meet with our Trading Desk to review proposed pool content, size, and pricing. 

Institutional Due Diligence Files

  • General Lending, Collections and Servicing Policies
  • Procedures, Controls or Underwriting Guidelines specific to your Loans
  • Audited Financials (Past 2 Years)
  • Resumes or Bios of appropriate Leadership (related to asset class you are trying to sell)

Performance Data

  • Charge Off & Delinquency Data – static loss date by original vintage, broken up by credit tier (if applicable)
  • Prepayment Data

Loan Due Diligence Files

  • Typically required for 10% of loans in each Pool as determined by LoanStreet prior to launch on the MarketPlace 
  • Details for Borrowers & Collateral – full Due Diligence (i.e.origination) documentation.

    Respond to Requests for Additional Due Diligence if applicable.

  • Your deal goes live on LoanStreet’s Marketplace and our Sales Team will actively market the pool to ideal Buyers. 
  • Interested Buyers request Full Access to the deal, which will provide an indication of interest and allow them to perform their Due Diligence.
  • LoanStreet allocates your deal across all potential participants and confirms their commitments.
  • Arrange Closing Date with LoanStreet’s Trading Desk
  • Provide an updated version of your original Loan Tape with values as of the end of day prior to the closing date.
  • Updated Loan Tape must contain the following fields:
    • Loan ID (Account Number)
    • Principal Balance Outstanding
    • Accrued Interest
    • Last Payment Date
    • Days Delinquent
  • Submit Wire Instructions for participants to send the funds directly to your account.
  • LoanStreet’s Trading Desk will send Cross Receipts to all participants once confirmation of payment receipt.

Investor reporting begins on the first business day of each month. Month-end loan balances and monthly transaction data should be delivered via SFTP or our secure Data Room before the 3rd business day to ensure timely reporting. 

Test files should be sent for validation at least one week prior to the start of the first reporting cycle, and SFTP connectivity confirmed at the same time, if your extracts and uploads are to be fully automated. Setup lead time and timely data delivery ensures a smooth reporting process for you and your participants.

Data Requirements for Monthly Reporting

Please refer to our Monthly Reporting Data Spec for the files listed below:

  • Transaction Records (Loan Payments)
  • Balance Updates
  • Loan Data

Sample Monthly Extracts:

Upon receipt of your data, LoanStreet’s Reporting Operations team will work with you to resolve any apparent discrepancies. 

Once reports are ready, you will receive a consolidated sell-side report. LoanStreet’s Reporting Operations team will typically hold a new seller’s reports for review and sign-off before releasing reports to participants. Upon approval and in subsequent months, LoanStreet will automatically release reports to your buyers.

Remittance Payments

Once all reports are finalized and sent to buyers, you will need to remit the monthly payments due to all Buyers via one of the following methods:

  1. Send funds yourselves directly to each participant via internal wire transfer.
    All participant’s bank account details will be listed on your monthly sell-side reports.

     

  2. Send funds (via a wire only) to LoanStreet, who will then distribute the payments to your buyers. 
    There is a small annual fee for this service.

     

  3. Click-to-Remit Automated ACH process. 
    Please see here for further information. 

Ongoing Support

LoanStreet’s Reporting Operations and Customer Success teams are available to meet with you throughout the selling process from platform setup, to monthly data requirements, and reporting related questions post sale.

 If you need assistance, please contact the LoanStreet Service Desk.

If your institution already has an existing Participations Portfolio and is seeking a robust, automated, and consolidated reporting solution, LoanStreet’s streamlined onboarding process makes it easy to report on private deals and participations transacted off our platform.

Please see here for more information.

Participation sellers can incorporate origination, servicing and other operational costs into LoanStreet’s Analytics to gain a more accurate view of the performance of their loans. Our analytics solution:

  • Accounts for costs over time, not just the gain or loss at the time of sale 
  • Eliminates the need to merge internal and external data sources 
  • Reduces time constructing cost schedules or recalculating return metrics
  • Generates exportable analytic reports quickly, efficiently and effectively

If you have any questions please reach out to your Sales Contact or our Customer Success team.