LightStream Halts New Loan Applications, Announces Sale of $7.7 Billion in Loans to Carlyle Group
Online lender LightStream is no longer accepting new loan applications as part of Truist Financial Corporation's decision to exit the consumer lending business. During its third-quarter earnings call on October 16, Truist announced it has agreed to sell $7.7 billion in unsecured personal loans from LightStream — essentially the entire portfolio — to private equity firm Carlyle Group. LightStream, launched by Truist Bank in 2013, specialized in fixed-rate unsecured personal loans for borrowers with good-to-excellent credit and offered financing up to $100,000. The move is part of a strategic shift aimed at improving the bank's financial performance, as LightStream was generating returns below Truist’s targets. Existing LightStream loan holders will not see changes in their terms or servicing during the transition period managed by Carlyle Group. However, new applicants are now directed to alternative lenders like SoFi and Bluevine for similar personal financing options.
Topics: Carlyle Group LightStream loan sale personal loans Truist Financial