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NEW YORK, Jan 12, 2018 (BUSINESS WIRE) —
Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four
classes of notes issued by Marlette Funding Trust 2018-1 (MFT 2018-1).
This is a $393.6 million consumer loan ABS transaction.

This transaction represents the sixth securitization collateralized by
unsecured consumer loans originated by Cross River Bank, under the
Marlette Best Egg Platform and sold to Marlette Funding, LLC
(“Marlette”) or its affiliate.

Founded in 2013 in Wilmington DE, Marlette operates an online
marketplace lending platform, operating under the Best Egg brand (www.mybestegg.com)
(the “Marlette Best Egg Platform” or the “Platform”). Approximately
$300- $500 million of loans are originated through the Platform per
quarter. Since March 2014, over $4.5 billion of loans have been
originated though the Platform, and as of November 30, 2017, Marlette
has approximately $106 million of loans on its balance sheet.

Marlette purchases and retains for its own balance sheet a portion of
the loans originated through the Marlette Best Egg Platform. The
Platform does not offer Peer-to-Peer funding, but instead partners
exclusively with institutional investors for whole loan sales. All whole
loan purchasers receive a random allocation of originations. Loan
retention from Cross River Bank, loan purchases from Marlette and whole
loan purchasers from institutional investors creates an alignment of
interest among stakeholders. On the closing date, the depositor will
acquire loans from nine Loan Sellers who will contribute loans as
collateral for MFT 2018-1.

The transaction has initial credit enhancement levels of 38.10% for the
Class A Notes, 24.10% for the Class B Notes, 14.85 % for the Class C
Notes and 6.70% for the Class D Notes. Credit enhancement consists of
overcollateralization, subordination (in the case of the Class A, Class
B and Class C Notes) and a reserve account funded at closing.

KBRA applied its U.S. 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 Avant Platform’s
historical gross loss data. KBRA also conducted an operational
assessment of the Avant 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: Marlette Funding Trust 2018-1

               
Class         Rating         Class Principal
A         AA (sf)         $261,848,000
B         A (sf)         $58,748,000
C         BBB (sf)         $38,815,000
D         BB (sf)         $34,200,000
 

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)

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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
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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20180112005635/en/

SOURCE: Kroll Bond Rating Agency

Kroll Bond Rating Agency

Analytical:
Eric
Neglia, 646-731-2456
Senior Director
eneglia@kbra.com
or
Jenny
Ovalle, 646-731-2309
Associate Director
jovalle@kbra.com
or
Andrew
Silverhardt, 646-731-2492
Analyst
asilverhardt@kbra.com
or
Rosemary
Kelley, 646-731-2337
Senior Managing Director
rkelley@kbra.com

Copyright Business Wire 2018



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