5 Comments

The headwinds are becoming tailwinds. Bright future for SoFi.

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I assume even if it wasn't profitable on its own, it would make sense to stay in the student loan business as a loss leader, getting a desirable demographic into their ecosystem for cross-selling and marketing at the start of their borrowing years.

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Agreed. I actually thought about that while I was thinking of what to say in this article, but then as I was writing it slipped my memory.

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Thanks for the great article! I love the charts, but the rise in annual default rates of personal loans doesn't look good.

So I guess those paying $104 for $100 student loans means they'll be paid for in 1 year, because the interest rates are at least 4%. I hadn't thought about it in those terms.

Also, I didn't realize SoFi focused on FHA and VHA loans. I wonder if that means it's unlikely they wouldn't pick up regular loans, which might be good to know before recommending them.

Thanks again; I'm excited to see how this plays out. I'm hoping rate cuts stir up more tech platform business, as it seems several companies could really use or even need to be upgraded.

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I know they do normal refis and I assume that they also do normal purchases as well, but I do think they try to focus where possible on agency loans

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