Sep
25

Internet Lender’s Bond Deal Starts to Sour a Year After Sale

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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

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