The point-of-sale lender disclosed in a
regulatory filing Wednesday that it had received notice from the $522
billion-asset Truist a day earlier that the regional bank would terminate the agreement.
The termination will be effective on Nov. 9.
Truist announced
on Tuesday that it plans to buy Service Finance, a Boca Raton, Fla.,
company that makes home-improvement loans, for $2 billion. The deal is expected
to close later this year.
GreenSky said in its filing that it has “significant unused funding commitments for
future loan originations.”
GreenSky noted several initiatives it has
pursued to diversify its funding model. It has turned to the asset-backed securitization
market and has entered into a $1.5 billion purchase agreement with a global
insurance company.
Truist originations have comprised about 8% of GreenSky’s total
transaction volume in 2021. GreenSky said its unused bank partner commitments on
June 30, excluding Truist, totaled $2.5 billion, including a relationship with
a new, unnamed bank.
“Demand for GreenSky program consumer loans from multiple funding
sources remains high, cost of funds across funding sources remain low, and
GreenSky continues to be poised for strong profitability,” the filing said.
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