Press Release|ABS
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KBRA Affirms and Upgrades Ratings for LendingPoint Pass-Through Trusts

3 Sep 2025   |   New York

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KBRA upgrades its ratings on three classes of notes and affirms its ratings on one class of notes issued by four LendingPoint Pass-Through Trust (“LPPT”) ABS transactions collateralized by unsecured consumer loans through LendingPoint’s direct to consumer (“DTC”) product. KBRA’s analysis indicated that the existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. All of the securities with upgraded ratings experienced increased credit enhancement. The data used for this review is as of the August 2025 distribution date (July 2025 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying LendingPoint Pass-Through Trust Comprehensive Surveillance Dashboard.

Six LendingPoint Asset Securitization Trust DTC transactions and one LP LMS 2023-1 transaction collateralized by LendingPoint’s point of need (“PON”) product are not included in this review. Please see LendingPoint Asset Securitization Trusts Comprehensive Surveillance and LP LMS 2023-1 Asset Securitization Trust Surveillance Report for additional information on those transactions.

LendingPoint was founded in July 2014 and is a wholly owned subsidiary of LendingPoint Holdings LLC, which is a wholly owned subsidiary of LendingPoint Consolidated, Inc. KBRA has reviewed the financials of LendingPoint Consolidated, Inc. As noted in prior KBRA reports, the Company underwent a servicing platform transfer in August 2023, which caused a temporary increase in delinquencies which subsequently contributed to a higher rate of charge-offs. In addition, the Company reduced the number of modifications during the system transfer. Since that time, modifications have returned to historical levels as outlined in the prior report. In September 2023, Warburg Pincus, a prior investor in LendingPoint, injected additional funds, gained a seat on the board of directors, and obtained majority control.

Since 2023, the Company has experienced management turnover, including the replacement of the CTO, CRO, CEO and CFO. More recently, the General Counsel and CEO left the Company in Q2 and Q3 2025, respectively. The Company also reduced staff by 27% since January 2024. The Company went through a restructuring that led to additional warehouse capacity, additional subordinated debt, and other liquidity from its lenders.

As noted in prior KBRA reports, the Company released a Settlement Modification Memo to its ABS Bondholders and Trustees discussing a change in the treatment of loans subject to debt settlement agreements due to the rising number of obligors utilizing the services of debt management companies. While the change in the treatment of loans subject to debt settlement agreements resulted in decreases in overcollateralization, outstanding modifications, and remaining pool factor, defaults or loss measures were not impacted. KBRA also notes that additional Obligors entering into debt settlements could continue to reduce pool balances.

LendingPoint uses its proprietary credit scoring models to assess the credit risk of applicants. The Company has offered two different loan products: DTC and PON; however, only DTC loans are included in the LPPT transactions. The Company exited the PON business line at the end of 2023 to focus on the DTC business. DTC loans are unsecured consumer loans typically used by the borrowers for either debt consolidation or credit card refinancing, to pay for a home improvement or to make a major purchase, while PON loans are used to finance a purchase at one of the Company’s approved merchants.

LendingPoint is the servicer for the transactions. Should LendingPoint be terminated as servicer, servicing responsibilities will be transferred to the backup servicer, Vervent Inc (“Vervent”). Vervent is an established backup servicer in the consumer ABS sector. As a backup servicer, Vervent conducts periodic on-site visits, receives monthly pool data, and confirms certain data on the monthly servicer reports. While change in servicer may result in a disruption in collections and modifications in how loans are serviced and payments are processed, Vervent’s ongoing involvement and preparedness as the backup servicer could limit the impact of a servicing disruption in the event of a servicing transfer.

Click here to view the report.

For additional information regarding a specific transaction, see the list below to access ratings, reports, and disclosures:

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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