ReliaMax announced in a press release that it will be insuring and servicing more than 5,000 private student loans recently acquired by MetaBank.
Launched in 2015, ReliaMax provides the only fully-integrated, comprehensive private educational debt solution that includes borrower acquisition, origination, servicing, capital markets, and insurance. The company, along with Garnet Capital Advisors of New York, assisted in the acquisition of the $151 million student loan portfolio.
All of the loans will be transferred onto the ReliaMax Lending Services platform which will greatly reduce MetaBank’s risks. This is the eighth private student loan portfolio client for ReliaMax, and the company currently insures over $2.6 billion in private student loans.
With education costs on the rise, getting into the student loan business seems like a solid business move for many community and regional banks. Last year, ReliaMax introduced the Connext solution, designed specifically to assist lenders that wish to enter or expand their market share in the student loan industry.
“MetaBank’s decision speaks to the sizable opportunity there is for banks to enter the private student loan asset class and more productively employ their deposits,” said Michael VanErdewyk, chairman and CEO of ReliaMax.
For its part, MetaBank, based in Sioux City, Maryland, was named top bank nationwide for growth by Bank Director magazine last year. It operates from 10 branches in South Dakota and Iowa, and reported 22 percent loan growth last year.