NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases a research report examining the
evolution of the consumer loan marketplace lending (MPL) sector. Since
inception, platforms have made improvements that address many of the key
credit considerations highlighted by KBRA when it first began rating
consumer MPL securitizations. For instance, most platforms have:
recruited experienced business leaders with backgrounds in traditional
banking, specialty finance, and credit card companies,
developed more predictive credit scoring models built off their own
performance data, providing significant lift compared to FICO® alone
or models built on proxy data,
accumulated seasoned static pool vintages and historical performance
data to improve loss forecasting,
tightened underwriting criteria, shifted internal credit grade mix,
shortened duration, and reduced loan size in response to observed
and/or anticipated credit softening,
made advances in many operational areas including loan servicing,
fraud identification, and mitigating loan stacking,
diversified funding sources to create alignment of interests and
increase funding stability.
As the leading rating agency in the consumer MPL sector, KBRA aims to
provide timely and in-depth credit ratings and research for investors
within this maturing industry.
To view the report, click here.
Related Publications: (available at www.kbra.com)
Consumer Loan Marketplace Lending Year in Review and 2019 Outlook
Consumer Loan Indices – April 2019
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About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus. KBRA is also recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.
Kelley, Senior Managing Director