Sep
25
Internet Lender’s Bond Deal Starts to Sour a Year After Sale
By-
Overdue payments from LoanDepot borrowers are on the rise
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Startups draw ire of Eisman, investor who foresaw Big Short
Online consumer loans made by LoanDepot Inc. are going bad faster than underwriters expected, threatening payments to investors who bought bonds backed by those debts less than a year ago.
Lenders typically expect to write off a portion of their loans as some of the borrowers go delinquent and eventually default. But in the bond deal tied to Loan Depot loans called MPLT 2015-LD1, overdue payments are already so high that they’ve triggered a provision that diverts cash from low-ranked bondholders to protect investors with higher priority…
Internet Lender’s Bond Deal Starts to Sour a Year After Sale
