ReliaMax, an all-in-one service to allow financial institutions to offer private student loans, is now managing $275 million in accounts two years after offering its online service.
The Sioux Falls, S.D., company announced Tuesday that’s its portfolio had increased more than six-fold from about $40 million at the end of 2015. Most of the growth came after mid-2015 when the company began to support to support the transfer and conversion of private student loan portfolios onto the ReliaMax Lending Services platform.
Since then, four new client lenders have converted to ReliaMax. The latest was MetaBank, which announced in February it had acquired and converted a $151 million portfolio of over 5,000 loans onto the ReliaMax Lending Services platform.
Michael VanErdewyk, ReliaMax’s chairman and CEO, said he expects the 12-year-old company to reach a loan servicing volume of $500 million by year’s end through portfolio conversions and higher originations from existing clients.
“We’re on a solid growth trajectory as more lenders are offering private student loans and we’re seeing strong demand for origination, servicing, and insuring those loans,” VanErdewyk said. “We have our eyes on further expansion across in-school, refinance and specialty private student loan programs such as for international medical degrees and for students from abroad that are pursuing their MBA degrees in the U.S.”
ReliaMax said that because its online application was designed exclusively for private student loans, the system is “unencumbered by the infrastructure constraints facing other student loan servicers whose platforms were designed to principally serve federal student loans or other consumer loans.”
The technology is designed to allow banks, credit unions and alternative lenders to easily enter the private student loan market, said Paul Dockry, president of ReliaMax Lending Services, LLC.
“Our model is unique in that we bring a comprehensive loan acquisition, origination and servicing solution under one roof, plus we insure the loans, which reduces lenders’ risk to effectively zero,” Dockry said.
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