NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by Credit Suisse ABS Trust 2018-LD1 (CSABS 2018-LD1). This is a $180.21 million consumer loan ABS transaction.
This transaction represents the third securitization collateralized by unsecured consumer loans originated by Cross River Bank, under the loanDepot Platform. In November 2015 and February 2016, Jefferies securitized loans purchased from the loanDepot Platform through Marketplace Loan Trust 2015-LD1 (MPLT 2015-1) and Marketplace Loan Trust 2016-LD1 (MPLT 2016-1). Neither MPLT 2015-1 and MPLT 2016-1 were rated by KBRA.
Founded in 2010, loanDepot operates an online consumer lending platform (www.loandepot.com) (the “loanDepot Platform” or the “Platform”). loanDepot offers mortgage, home equity or personal loans to prime and near prime customers through the Platform. The Platform began originating personal loans in May 2015 and has originated $868 million since inception.
The Platform does not offer peer-to-peer funding, but instead partners exclusively with institutional investors for whole loan sales. On the closing date, the Depositor will acquire loans from two loan sellers who will contribute loans as collateral for CSABS 2018-LD1.
The transaction has initial credit enhancement levels of 42.05% for the Class A Notes, 28.20% for the Class B Notes, 14.75% for the Class C Notes, and 9.00% for the Class D Notes. Credit enhancement consists of overcollateralization, subordination (in the case of the Class A, Class B, and Class C Notes), excess spread and a reserve account funded at closing.
KBRA applied its Global Consumer Loan ABS Methodology for Asset-Backed Securities as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and the Platform’s historical gross loss data. KBRA also conducted an operational assessment of the loanDepot Platform, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.
Preliminary Ratings Assigned: Credit Suisse ABS Trust 2018-LD1
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Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available here.
Related Publications: (available at www.kbra.com)
- Credit Suisse ABS Trust 2018-LD1 Pre-Sale Report
- Credit Suisse ABS Trust 2018-LD1 Peer Comparison
- Global Consumer Loan ABS Rating Methodology
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 recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and 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.