The SEC found numerous compliance issues when examining rating services in 2018. The report on the problems, though, was even more vague than usual.

A $175 million prime auto ABS issued by GTE Federal Credit Union in November was the first rated ABS issued by a credit union. Other deals are likely to follow thanks to revisions made by the NCUA.

To avoid retaining risk in securitization deals, mortgage lenders are joining hands with investors who act as “co-sponsors” and take on the first-loss position.

Issuance of marketplace lending ABS is expected to increase slightly, led by optimism in the economy and improved underwriting criteria, according to rating services.

In a new supervisory insights report, the FDIC raised concerns about the continuing weakening credit structure of leveraged loans.

Two proposals look to reaffirm the “valid when made” doctrine, paving the way to settle legal risks facing the securitization industry.

Presidential candidate Elizabeth Warren has flagged concerns about the issuer-pays model used by credit rating agencies for securitized products. She said the SEC hasn’t done enough to address the conflicts of interest tied to the model.

For the third straight year, in 2018, marketplace lenders held the top spot in the unsecured personal lending space. Meanwhile the share of banks dropped to 28%.

S&P Global Ratings recently expressed concerns about potential legal risks around who the “true lender” is in marketplace lending ABS.