KBRA publishes study on the evolution of the lending sector in the consumer loan market (MPL)


NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) publishes research report examining developments in the lending industry in the consumer loan market (MPL). Since their inception, the platforms have made improvements that address many of the key credit considerations that KBRA highlighted when it first started rating consumer MPL securitizations. For example, 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 from their own performance data, offering a significant gain over FICO® alone or models built on proxy data,

  • accumulation of seasoned static vintages and historical performance data to improve loss forecasting,

  • tightening of underwriting criteria, modification of the composition of internal credit ratings, reduction of the duration and reduction of the size of loans in response to an observed and / or anticipated credit easing,

  • is making progress in many operational areas, including loan management, fraud identification and loan accumulation mitigation,

  • Diversified funding sources to create alignment of interests and increase funding stability.

As the leading rating agency in the consumer MPL industry, KBRA aims to provide in-depth and timely credit ratings and research to investors in this mature 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 United States Securities and Exchange Commission as an NRSRO. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider and is a credit rating agency (CRA) certified by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a rating agency.

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