Evaluating the Role of Representations and Warranties in Marketplace-Lending Securitization


[Editor’s note: This is a white paper from Diana Lande, Vice President, Asset-Backed Securities at Morningstar. Morningstar is a Silver sponsor at LendIt USA 2016, which will take place on April 11-12, 2016, in San Francisco. At LendIt, Diana will be moderating the representations and warranties panel.]

The perceived deficiency in representations and warranties offering transparency around credit quality, origination, and servicing is an often-mentioned barrier to mainstream rated marketplace-lending securitization. While marketplace-lending originators planning to securitize loans by issuing rated notes must provide basic ABS representations and warranties, Morningstar Credit Ratings does not consider the relative strength of representations and warranties alone to be a major barrier to ratability.

Download the full white paper: Evaluating the Role of Representations and Warranties in Marketplace-Lending Securitization

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