Outstanding principal balance of loans at the end of periods indicated that were issued to the fractional pool.
March 31, 2012: 73.56%
December 31, 2012: 49.27%
December 31, 2013: 30.36%
June 30, 2014: 26.35%
Between December 31, 2013, and June 30, 2014, percentage of new issues to respective parties:
Fractional retail: 17.89%
Certificates: 28.75%
Whole loans: 53.36%
LC financed: 0.05%
Derived from data on page 52.
I had read about the Springstone acquisition, but had not heard about all of these details:
Springstone Acquisition
In April 2014, we acquired Springstone, which offers education and patient financing options. Springstone utilizes two issuing banks and a network of providers. Springstone facilitates two loan products:
• An installment loan with amounts ranging from $2,000 to $40,000, terms from 24 to 84 months, fixed rates from 3.99% to 17.99%, fixed monthly payments and no prepayment penalties.
• A deferred interest loan with amounts ranging from $499 to $25,000 that provides for no interest if the balance is paid in full during the promotional period, which can be six, 12, 18 or 24 months. If the loan is not paid in full during the promotional period, interest is imposed from the issuance date at variable rate based upon the prime rate. There is no prepayment penalty and borrowers have the flexibility to pay as much or as little, subject to applicable minimums, of the outstanding balance per month during the promotional period as they chose.
Currently, each of Springstone’s issuing banks originates, holds and services each issued loan. For its role in loan facilitation, Springstone earns transaction fees paid by the issuing bank and service provider at the time of origination, which averaged 4.9% of the initial loan balance in 2013. We plan to incorporate these education and patient financing products into our platform over time.
Springstone's balance sheets and such are also included. I haven't pored over that yet.
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