Sunlight Financial Announces Updated Credit Loss Rates
Sunlight Financial Holdings Inc. (NYSE: SUNL) reported impressive credit loss rates for solar loans originated between 2018 and 2020, averaging 1.61%, 1.24%, and 0.39% respectively. These rates significantly outperform peer averages of 3.18%, 2.35%, and 0.82%. The company attributes its success to effective credit risk management and the rollout of its Credit 5.0 risk assessment methodology, which increased solar approval rates by over 8% without raising expected loss rates. This track record is crucial for attracting capital and maintaining competitive pricing for contractors.
- Average credit loss rates for solar loans have decreased from 1.61% in 2018 to 0.39% in 2020.
- Sunlight's credit loss rates are significantly better than the peer average, which stands at 3.18% for 2018 loans.
- The implementation of Credit 5.0 has successfully increased solar loan approval rates by over 8% without raising expected loss rates.
- None.
– Demonstrates consistently superior solar credit quality relative to peers –
Solar loans that Sunlight originated in 2018, 2019 and 2020 had an average loss rate of
"We are very proud of our continued best-in-class credit performance, as managing risk prudently and maintaining industry-leading credit quality has always been a core pillar of Sunlight’s success,” said
Sunlight’s Industry-Leading Credit Loss Rates
|
|
2018 Vintage |
|
2019 Vintage |
|
2020 Vintage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peer A |
|
|
|
|
|
|
Peer B |
|
|
|
|
|
-- |
Peer C |
|
-- |
|
|
|
|
Peer D |
|
-- |
|
|
|
|
|
|
|
|
|
|
|
Peer Average |
|
|
|
|
|
|
Source: Kroll ABS performance reports, internal performance reports as of |
Note: Reflects gross losses for 2018-2019 and net losses for 2020. Loss rates for peers with multiple ABS deals in a given vintage year reflect an average of all issuances. |
Credit Risk Management is a Core Pillar of Success
Superior credit risk management has always been at the heart of Sunlight’s business model. The Company’s management team has significant consumer credit experience across a wide variety of asset classes and multiple credit cycles, which drives a deep understanding of the importance of credit quality to maintain sufficient access to low-cost capital.
In
About
Sunlight (NYSE: SUNL) is a premier, technology-enabled point-of-sale finance company. Sunlight partners with contractors nationwide to provide homeowners with financing for the installation of residential solar systems and other home improvements. Sunlight’s best-in-class technology and deep credit expertise simplify and streamline consumer finance, ensuring a fast and frictionless process for both contractors and homeowners. For more information, visit www.sunlightfinancial.com.
Forward-Looking Statements
The information included herein and in any oral statements made in connection herewith may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended. Forward-looking statements may generally be identified by the use of words such as “could,” “should,” “would,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “plan,” “continue,” or the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Sunlight disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date hereof. Sunlight cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Sunlight. Such risks and uncertainties include, among others: risks relating to the uncertainty of the projected operating and financial information with respect to Sunlight; risks related to Sunlight’s business and the timing of expected business milestones or results; global supply chain shortages, competition for skilled labor, and permitting delays; the effects of competition and regulatory risks, and the impacts of changes in legislation or regulations on Sunlight’s future business; the expiration, renewal, modification or replacement of the federal solar investment tax credit, rebates and other incentives; the effects of the COVID-19 pandemic on Sunlight’s business or future results; Sunlight’s ability to sustain profitability and to attract and retain its relationships with third parties, including Sunlight’s capital providers and solar contractors; changes in the retail prices of traditional utility generated electricity; the availability of solar panels, batteries and other components and raw materials; and such other risks and uncertainties discussed in the “Risk Factors” section of Sunlight’s Form 10-K as filed with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20220606005668/en/
Media:
Investor Relations
investors@sunlightfinancial.com
888.315.0822
Public Relations
media@sunlightfinancial.com
Source:
FAQ
What are the credit loss rates for Sunlight Financial (SUNL) loans from 2018 to 2020?
How does Sunlight Financial's credit performance compare to its peers?
What improvements did Sunlight Financial make with the Credit 5.0 rollout?