EX-99.1 2 cps_ex9901.htm INDEPENDENT ACCOUNTANTS' REPORT

Exhibit 99.1

 

 

KPMG LLP

Suite 700

20 Pacifica

Irvine, CA 92618-3391

 

Independent Accountants’ Report on Applying Agreed-Upon Procedures

 

Consumer Portfolio Services, Inc. (the “Company”)
Credit Suisse Securities (USA) LLC
Citigroup Global Markets Inc.
(together, the “Specified Parties”)

 

Re: CPS Auto Receivables Trust 2022-C – Data File Procedures

 

We have performed the procedures described below on the specified attributes in an electronic data file entitled “bb.Pool_2022-C_053122_Indicative.xlsx,” provided by the Company on June 29, 2022, containing information on 9,424 automobile retail installment sale contracts (“Receivables”) as of May 31, 2022 (the “Data File”), which we were informed are intended to be included as collateral in the offering by CPS Auto Receivables Trust 2022-C. The Company is responsible for the specified attributes identified by the Company in the Data File.

 

The Specified Parties have agreed to and acknowledged that the procedures performed are appropriate to meet their intended purpose of assisting specified parties in evaluating the accuracy of the specified attributes in the Data File. This report may not be suitable for any other purpose. No other parties have agreed to or acknowledged the appropriateness of these procedures for the intended purpose or any other purpose.

 

The procedures performed may not address all the items of interest to a specified party of this report and may not meet the needs of all specified parties of this report and, as such, specified parties are responsible for determining whether the procedures performed are appropriate for their purposes. We make no representation regarding the appropriateness of the procedures either for the intended purpose or for any other purpose.

 

Unless otherwise stated, the following definitions have been adopted in presenting our procedures and findings:

 

·The term “compared” means compared to the information shown and found it to be in agreement, unless otherwise stated. Such compared information was deemed to be in agreement if differences were within the reporting threshold.

 

·The term “reporting threshold” means that dollar amounts and percentages were within $1.00 and 0.1%, respectively.

 

·The term “Instructions” means the instructions provided by the Company pertaining to a procedure, attribute, or methodology, as described in the procedures below.

 

·The term "Vehicle Mapping" means email correspondence provided by the Company on June 29, 2022, containing the Vehicle Models and Vehicle Makes corresponding to different abbreviations of vehicle model and vehicle make appearing on the Installment Sale Contracts.

 

 

 

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·The term “Title Document” means a scanned image of one of the title documents listed in Exhibit A, which the Company informed us are acceptable forms of Title Document.

 

·The term “Acceptable Company Names” means the acceptable company names listed in Exhibit A, which the Company informed us are acceptable names for the Company that can appear in the Title Documents as the Lien Holder, Owner, Security Interest Holder, or Secured Party.

 

·The term “Insurance Document” means a scanned image of one of the insurance documents listed in Exhibit A, which the Company informed us are acceptable forms of Insurance Document.

 

·The term “Receivable File” means any file containing some or all of the following documents for each Sample Receivable (defined below): Installment Sale Contract (which includes any related Addendum(s) to the Installment Sale Contract and/or Retail Installment Sale Contract Simple Interest Finance Charge letter) (not applicable for direct loans), Federal Truth in Lending Disclosure Statement (within the Installment Sale Contract or a stand-alone document for direct loans), Title Document, Insurance Document, and Credit Application (not applicable for direct loans). We accessed the Receivable Files in the Company’s data imaging system via virtual desktop. We make no representation regarding the validity, enforceability, or authenticity of the information in the Receivable File.

 

·The term “Provided Information” means the Instructions, Vehicle Mapping, Acceptable Company Names, and Receivable File.

 

Prior to being provided the Data File, we received one or more earlier versions of the data file on which to perform our procedures. In performing those procedures, we identified differences which were communicated to the Specified Parties. The Data File represents the revised information reflecting resolution of differences communicated as determined appropriate by the Specified Parties. We performed the procedures on the Data File, and the results of those procedures are reflected herein.

 

The procedures we were instructed by the Company to perform and the associated findings are as follows:

 

A.We randomly selected a sample of 150 Receivables from the Data File (the “Sample Receivables”). A listing of the Sample Receivables is attached hereto as Exhibit B. For purposes of this procedure, the Company did not inform us of the basis they used to determine the number of Receivables we were instructed to randomly select from the Data File.

 

B.For each Sample Receivable, we compared the specified attributes in the Data File listed below to or using the corresponding information included in the Receivable File, utilizing the Instructions, as applicable. The Specified Parties indicated that the absence of any of the information in the Receivable File or the inability to agree the specified attributes from the Data File to the Receivable File, utilizing the Instructions, as applicable, constituted an exception. The Receivable File documents are listed in the order of priority.

 

Attribute Receivable File / Instructions
Obligor’s First Name and Last Name Installment Sale Contract, Federal Truth in Lending Disclosure Statement, Credit Application
Contract Date Installment Sale Contract, Federal Truth in Lending Disclosure Statement
Original Term Installment Sale Contract, Federal Truth in Lending Disclosure Statement
Original Amount Financed Installment Sale Contract, Federal Truth in Lending Disclosure Statement
Scheduled Monthly Payment Amount Installment Sale Contract, Federal Truth in Lending Disclosure Statement
Annual Percentage Rate (“APR”) Installment Sale Contract, Federal Truth in Lending Disclosure Statement
Vehicle Type (New or Used) Installment Sale Contract, Federal Truth in Lending Disclosure Statement, Gap Addendum. Consider an entry of “C” in the Data File to be a Used vehicle.
Vehicle Make Installment Sale Contract, Federal Truth in Lending Disclosure Statement, Vehicle Mapping.
Vehicle Model Installment Sale Contract, Federal Truth in Lending Disclosure Statement, Vehicle Mapping, Insurance Document.

 

 

 

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C.For each Sample Receivable, we observed the presence of the following in the Receivable File, except as listed in Exhibit C:

 

1.Title Document. We were instructed by the Company to observe that one of the Acceptable Company Names appeared on the Title Document as the Lien Holder, Owner, Security Interest Holder, or Secured Party.

 

2.Proof of Insurance. The Company informed us that an Insurance Document was acceptable proof of insurance.

 

We did not observe the presence of Proof of Insurance for Sample Receivables #48 and #57. The Company provided screenshots from the Company’s servicing system for these Sample Receivables indicating they were “Stip Tier 3” (“ST03”) loans, which the Company informed us were not required to provide Proof of Insurance pursuant to its underwriting policy. These were not considered exceptions.

 

3.Signed Credit Application (not applicable to direct loans). We make no representation regarding the authenticity of the obligor’s signature(s).

 

We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants, which involves us performing the specific procedures agreed to and acknowledged above and reporting on findings based on performing those procedures. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the specified attributes in the Data File. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported.

 

We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

 

The procedures performed were applied based on the information included in the Data File and Provided Information, without verification or evaluation of such information by us; therefore, we express no opinion or any other form of assurance regarding (i) the reasonableness of the information provided to us by the Company, (ii) the physical existence of the Receivables, (iii) the reliability or accuracy of the Provided Information which was used in our procedures, or (iv) matters of legal interpretation.

 

The procedures performed were not intended to address, nor did they address: (i) the conformity of the origination of the Receivables to stated underwriting or credit extension guidelines, standards, criteria or other requirements, (ii) the value of collateral securing any such Receivables being securitized, (iii) the compliance of the originator of the Receivables with federal, state, and local laws and regulations, or (iv) any other factor or characteristic of the Receivables that would be material to the likelihood that the issuer of the asset-backed security will pay interest and principal in accordance with applicable terms and conditions. The procedures performed were not intended to satisfy any criteria for due diligence published by the nationally recognized statistical rating organizations (“NRSROs”).

 

The terms of our engagement are such that we have no responsibility to update this report because of events and circumstances that may subsequently occur.

 

This report is intended solely for the information and use of the Specified Parties. It is not intended to be and should not be used by any other person or entity, including investors or the NRSROs, who are not identified in the report as the Specified Parties but may have access to this report as required by law or regulation.

 

/s/KPMG LLP

Irvine, California
July 1, 2022

 

 

 

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Exhibit A

 

 

Title Documents

 

Application for Certificate of Ownership Form MV-1 Motor Vehicle Title Application
Application for Certificate of Title Guarantee of Title (provided by the dealer to CPS)
Application for Dealer Assignment Lien Entry Form
Application for Registration Multi-Purpose Application
Application for Title and/or Registration MV-1
Application for Vehicle Transaction Notice of Security Interest
Certificate of Title Registration and Title Application
Dealer Guarantee of Title Delivery Title & License Plate Application
Dealer, Rebuilder or Lessor’s Report of Sale or Lease Title and Registration Application
Direct Lien Receipt from Office of Motor Vehicle Records and Information Title Application
Electronic Title in the CPS Title Management System Vehicle Registration/Title Application for Dealer Sales

 

Acceptable Company Names

 

CPS Consumer Portfolio Services
CPS INC Consumer Portfolio Srv, INC
CPS.INC Consumer Portfolio Svcs Inc
CPS Inc. Consumer Portfolio Srvcs Inc
CPS, INC Consumer Portfolio Svcs, Inc
CPS, Inc. CONSUMER PORFOLIO SERVICEC INC
C.P.S. Inc. Consumer Portfolio Service Inc
CPS Incorporated Consumer Portfolio Services In
Consumer Portfolio S Consumer Portfolio Services, I
Consumer Portfolio Inc Consumer Portfolio Svcs., Inc.
Consumer Portfolio Serv Consumer Portfolio Services Inc
Consumer Portfolio Srvs Consumer Portfolio Services, Inc
Consumer Portfolio Svcs Consumer Portfolio Services Inc.
Consumer Portfolio Servic Consumer Portfolio Services, Inc.
Consumer Portfolio Service Company’s ELT E-Numbers from different DMV systems

 

Insurance Documents

 

Agreement for Purchaser to Provide Accidental

Physical Damage Coverage

 Insurance Card
Agreement to Furnish Insurance Policy Insurance Coverage Acknowledgment
Agreement to Maintain Physical Damage Insurance Insurance Declaration Page
Agreement to Provide Insurance Insurance Verification system screenshot
Application for Insurance Letter of Coverage
Auto Insurance Coverage Summary Memorandum of Insurance
Auto Insurance Policy Amended Declarations Notice of Property Insurance
Certificate of Insurance Proof of Insurance/Authorization to Release Insurance Information
Certificate of No-fault Insurance Temporary Proof of Insurance Card
Confirmation of Accidental Physical Damage Insurance Vehicle Insurance Information
Evidence of Liability Insurance Verification of Coverage
Financial Responsibility Identification Card Verification of Insurance
Insurance Binder  

 

 

 

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Exhibit B

 

The Sample Receivables

 

Sample Receivable #

 Receivable Number1 Sample Receivable # Receivable Number1 Sample Receivable # Receivable Number1
1 2022C001 51 2022C051 101 2022C101
2 2022C002 52 2022C052 102 2022C102
3 2022C003 53 2022C053 103 2022C103
4 2022C004 54 2022C054 104 2022C104
5 2022C005 55 2022C055 105 2022C105
6 2022C006 56 2022C056 106 2022C106
7 2022C007 57 2022C057 107 2022C107
8 2022C008 58 2022C058 108 2022C108
9 2022C009 59 2022C059 109 2022C109
10 2022C010 60 2022C060 110 2022C110
11 2022C011 61 2022C061 111 2022C111
12 2022C012 62 2022C062 112 2022C112
13 2022C013 63 2022C063 113 2022C113
14 2022C014 64 2022C064 114 2022C114
15 2022C015 65 2022C065 115 2022C115
16 2022C016 66 2022C066 116 2022C116
17 2022C017 67 2022C067 117 2022C117
18 2022C018 68 2022C068 118 2022C118
19 2022C019 69 2022C069 119 2022C119
20 2022C020 70 2022C070 120 2022C120
21 2022C021 71 2022C071 121 2022C121
22 2022C022 72 2022C072 122 2022C122
23 2022C023 73 2022C073 123 2022C123
24 2022C024 74 2022C074 124 2022C124
25 2022C025 75 2022C075 125 2022C125
26 2022C026 76 2022C076 126 2022C126
27 2022C027 77 2022C077 127 2022C127
28 2022C028 78 2022C078 128 2022C128
29 2022C029 79 2022C079 129 2022C129
30 2022C030 80 2022C080 130 2022C130
31 2022C031 81 2022C081 131 2022C131
32 2022C032 82 2022C082 132 2022C132
33 2022C033 83 2022C083 133 2022C133
34 2022C034 84 2022C084 134 2022C134
35 2022C035 85 2022C085 135 2022C135
36 2022C036 86 2022C086 136 2022C136
37 2022C037 87 2022C087 137 2022C137
38 2022C038 88 2022C088 138 2022C138
39 2022C039 89 2022C089 139 2022C139
40 2022C040 90 2022C090 140 2022C140
41 2022C041 91 2022C091 141 2022C141
42 2022C042 92 2022C092 142 2022C142
43 2022C043 93 2022C093 143 2022C143
44 2022C044 94 2022C094 144 2022C144
45 2022C045 95 2022C095 145 2022C145
46 2022C046 96 2022C096 146 2022C146
47 2022C047 97 2022C097 147 2022C147
48 2022C048 98 2022C098 148 2022C148
49 2022C049 99 2022C099 149 2022C149
50 2022C050 100 2022C100 150 2022C150

 

1The Company has assigned a unique eight-digit Account Number to each Receivable in the Data File. The Receivable Numbers referred to in this Exhibit are not the Company’s Account Numbers.

 

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Exhibit C

 

 

Exceptions List

 

Sample Receivable # Receivable Number Attribute Per
Data File		 Per
Receivable File
113 2021C113 Proof of Insurance Not Applicable Not Available
131 2021C131 Signed Credit Application Not Applicable Not Available

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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