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)
- 2018 Consumer Loan Marketplace Lending Year in Review and 2019 Outlook
- Marketplace Consumer Loan Indices - April 2019
CONNECT WITH KBRA
Twitter
LinkedIn
Download
the iOS App
YouTube
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.
