Our loans ‘have really strong risk controls’


Noto, formerly the chief operating officer of Twitter, said that when he joined SoFi — a CNBC Disruptor 50 company whose name stands for “Social Finance” — “the No. 1 priority was making sure that we focused on quality of loans over quantity of loans.”

Knowing that the Fed would soon start raising interest rates in earnest, Noto knew that his millennial-facing company would have to adjust to ensure that the loans it made were secure and appropriately backed.

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“We wanted to focus on per-loan economics for two reasons: one, we wanted the loans that we created to be great investments for our asset-backed security investors, but also if we keep them on our balance sheet,” he told Cramer. “So we made that pivot when I got to the company to ensure that we prepared for the longer-term rising-rate environment.”

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