Boston-based First Marblehead Corp., one of the largest securitizers of student loans, has entered into a loan program agreement with SunTrust Bank.
Pursuant to the agreement, First Marblehead will perform a range of services in support of a school-certified private education loan program to be funded by Atlanta-based SunTrust, including loan processing, production support, program support and portfolio management and program administration services. First Marblehead expects to facilitate approximately $200 million in loans over the term of the program.
This loan program would be the first based on the First Marblehead’s monogram product offering, which enables lenders to customize a loan program to meet defined risk control and return objectives. The agreement is expected to become effective during the quarter ending Sept. 30.
"Partnering with SunTrust provides First Marblehead a meaningful opportunity to structure, process and originate private student loans in this new market paradigm of credit, risk management, and revenue sharing," said Daniel Meyers, First Marblehead’s chief executive officer and president. "This loan program will put our monogram structure into the marketplace and demonstrate that our revenue model does not require a capital markets takeout."
"We are pleased that this partnership with First Marblehead will enhance the options we offer for families and students seeking assistance to fund the rising costs of college," said Mark Smith, SunTrust’s executive vice president for specialty lending.
