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KBRA Releases Research on the Evolution of the Consumer Loan Marketplace Lending (MPL) Sector

May 24, 2019

NEW YORK--(BUSINESS WIRE)--May 24, 2019--

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 )

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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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190524005230/en/

CONTACT: Analytical:

Eric Neglia, Managing Director

(646) 731-2456

eneglia@kbra.com

Rosemary Kelley, Senior Managing Director

(646) 731-2337

rkelley@kbra.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE

SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2019.

PUB: 05/24/2019 10:51 AM/DISC: 05/24/2019 10:51 AM

http://www.businesswire.com/news/home/20190524005230/en

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