Momnt Technologies Trust is preparing a $124.4 million securitization of revenue from home renovation and repair loans, adding to this week's roster of securitization issuers coming to the market for the first time.
Atlanta-based Momnt Technologies provides lending solutions to companies that, in turn, lend to customers through the Momnt Platform, according to a pre-sale report from Kroll Bond Rating Agency (KBRA). The platform itself offers the lending solutions through two subsidiaries, the Artis Credit Fund I and Momnt Servicing.
The Asset Securitization Report notes that the deal is slated to close on December 22, and notes that Run 8 Investments sold the consumer loans into the pool.
A roster of well-known operators are playing key roles in the deal, which relies on revenue from a prime customer base to repay the notes. Cross River Bank originated all of the loans through the Momnt Platform, and the bank also acts as the master servicer, according to KBRA. The rating agency notes that Momnt's typical customer is a homeowner with a weighted average (WA) FICO score of about 755 and a WA annual income of about $155,000.
As of October 31, loans in the initial receivables pool had a FICO score of 753 on a WA basis, an original term of 87 months, an average original balance of about $16,249 and a WA annual percentage rate of about 11.43%, the rating agency said.
KBRA intends to rate three of the five tranches in the deal, the rating agency said. At least four of the note classes have a March 20, 2045 legal final maturity date, according to the rating agency. Class A notes received a preliminary rating of 'A-', class B received 'BBB-' and class C received 'BB-', the rating agency said.
Although Momnt has been running its home improvement finance program since 2019, the company has only been originating loans in substantial volumes since Q1 2022. More than 60% of all loans in its portfolio were originated in 2023, KBRA said. Performance history in the pool covers a period of about two years for loans with original terms that might be as long as 12 years, but it does not show a full repayment profile or performance through a full credit cycle, KBRA said. Also, the performance data might be slightly skewed, because it was impacted by favorable economic conditions.
