Residential home improvement loans that fund home performance projects including upgrades, windows and doors, water efficiency, generators and roofs will support $389 million in asset-backed securities (ABS), in a deal slated to come to market at the end of the month.
This is GoodLeap Home Improvement Solutions Trust's second transaction this year after it raised about $408.9 million in April, through series 2026-1.
Analysts at Kroll Bond Rating Agency expect a lifetime cumulative net loss (CNL) of 9.90%, a level that is 0.21% lower than what the ratings team projected for GDLP 2026-1.
GDLP 2026-2 also has lower levels of initial credit enhancement compared to GDLP 2026-1, at 6.12% versus 5.74%; overcollateralization at 23.90% versus 24.92% and total gross excess spread of 5.55% versus 5.98%, according to KBRA.
Broken down by tranches, classes A, B and C benefit from levels of 21.37%, 15.27% and 6.2%, respectively.
Fitch Ratings analysts say the deal structure employs a CNL trigger, which will change the payment priority to a sequential turbo for classes A, B and C notes.
The collateral pool is composed of 34,515 loans, which have an average loan size of $12,515, and an original term of 151 on a weighted average (WA) basis.
GDLP 2026-2's assets has a remaining term of 149 months.
Borrowers have a FICO score on a WA basis, Fitch said. The pool appears to be more geographically diverse, with Texas, California and Florida account for 11.6%, 9.88% and 8.19% of the pool, respectively.
GoodLeap will service the contracts, while Vervent is on the transaction as a backup servicer, Fitch said.
Fitch assigns A-, BBB- and BB- to classes A, B and C, respectively, and KBRA also assigns A-, BBB and BB- to classes A, B, and C, respectively.
