KBRA Assigns Preliminary Ratings to GoodLeap Home Improvement Solutions Trust 2024-1
11 Oct 2024 | New York
KBRA assigns preliminary ratings to three classes of notes issued by GoodLeap Home Improvement Solutions Trust 2024-1 (“GDLP 2024-1”), a $378.3 million asset-backed securitization collateralized by a pool of residential home improvement loans originated by GoodLeap, LLC ("GoodLeap" or the "Company"). The preliminary ratings reflect the initial credit enhancement levels ranging from 20.75% for the Class A notes to 7.60% for the Class C notes as a percentage of 95% of the pool balance.
GoodLeap is headquartered in Roseville, California and offers its home improvement loans at the point-of-sale to mostly prime credit quality homeowners through its partnerships with more than 1,000 approved installers. The home improvement loans are used to finance sustainable projects such as LED lighting, heating venting and air conditioning (HVAC), home performance upgrades (e.g. smart home technology), windows and doors, water efficiency, generators and roofs. GoodLeap offers standard installment loans as well as promotional loan repayment products that allow the borrower to make lower monthly payments during the initial loan period. The collateral pool of GDLP 2024-1 will include approximately $428.8 million of home improvement loans where approximately 23.2% of the pool has a promotional period.
KBRA applied its Consumer Loan ABS Global Rating Methodology as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In applying the methodologies, KBRA analyzed GoodLeap's portfolio pool data, underlying collateral pool and proposed capital structure under stressed cash flow assumptions. KBRA considered its operational review of GoodLeap, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
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