Rocket Loans' fifth securitization of proceeds from unsecured consumer loans, which primarily markets unsecured consumer loans to its Rocket Mortgage customers will raise $513.2 million.
The deal, RKTL 2026-3, will sell the notes through five tranches of class A, B, C, D and E, and have a legal final maturity date of Aug. 27, 2035, said analysts at Kroll Bong Rating Agency.
Initial credit enhancement levels on the classes A, B, C, D and E is 42.72%, 25.77%, 16.37%, 10.27% and 6.97%, respectively, and consists of overcollateralization, subordination—except for the E notes—a reserve account funded on the closing date and excess spread.
Unless a turbo trigger is in effect, the deal will repay principal to noteholders through a sequential waterfall structure, KBRA said. Interest payments on classes A and B notes will be made before principal, and the deal will pay interest and principal on the classes C through E notes sequentially, according to the rating agency.
Initially, overcollateralization represents 6.50% of the pool balance, initially, a cash reserve account funded at closing and equal to 0.50% of the initial aggregate note balance, KBRA said. The non-declining reserve cash account will be funded at closing in an amount equal to 0.50% of the initial aggregate note balance, KBRA said.
The collateral pool contains 18,466 loans, with an average balance of $22,040 and an interest rate of 12.85% on a weighted average (WA) basis. The loans have an original term of 54 months, with the same remaining, KBRA said.
Across the board, the current pool's major loan characteristics were higher than those seen on the RKTL 2026-2, with 60-month loans representing a higher concentration of the current pool (77.0%) compared with 73.7% on the previous deal, KBRA said.
Also, the average loan balance, $22,040, was higher than $21,386 on the previous transaction; the borrowers' WA credit score 747, ticked up higher than the 745 seen on the RKTL 2026-2, and the WA interest rate, 12.85% compares with the previous deal's 12.81%, according to the rating agency.
KBRA assigns preliminary ratings of AAA, AA-, A-, BBB- and BB to the classes A, B, C, D and E, respectively.
