EX-99.1 2 d373551dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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Darien Rowayton Bank

1001 Post Road

Darien, Connecticut 06820

Independent Accountants’ Report

on Applying Agreed-Upon Procedures

Ladies and Gentlemen:

We have performed the procedures described below, which were agreed to by Darien Rowayton Bank (the “Company”) and Credit Suisse Securities (USA) LLC (the “Other Specified Party” and, together with the Company, the “Specified Parties”) related to their evaluation of certain information with respect to a portfolio of student loans in connection with the proposed offering of DRB Prime Student Loan Trust 2017-A, Student Loan Asset-Backed Notes.

This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the Specified Parties of this report. Consequently, we make no representations regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

Agreed-Upon Procedures

On March 17, 2017, representatives of the Company, provided us with a student loan listing of 2,792 student loan contracts (the “Student Loan Listing”). At the instruction of the Company, we randomly selected 160 student loan contracts from the Student Loan Listing (the “Sample Loans”).

Further, on March 21, 2017, representatives of the Company provided us with a computer-generated student loan data file and related record layout containing data, as represented to us by the Company, as of the close of business March 21, 2017, with respect to 2,786 student loan contracts (the “Statistical Loan File”).

At the Company’s instruction, we performed certain comparisons and recomputations for each of the Sample Loans relating to the student loan characteristics (the “Characteristics”) set forth on the Statistical Loan File and indicated below.

Characteristics

 

1. Loan number (informational purposes only)    10. Current loan balance
2. Loan type (fixed or adjustable)    11. Last payment date
3. Original loan balance    12. Borrower degree program
4. Original loan term    13. School name
5. First disbursement date    14. Graduation year
6. Maturity date    15. Original borrower FICO
7. Interest rate    16. Original co-borrower FICO (if applicable)
8. Borrower city    17. Gross annual income
9. Borrower state   

 

  

Member of

Deloitte Touche Tohmatsu Limited


We compared Characteristics 2. through 4. to the corresponding information set forth on or derived from the Promissory Note or Final Disclosure Statement (collectively, the “Note”); Characteristics 5. through 11. to a data query, provided by the Company on March 23, 2017, from their servicing system (the “Servicing System Query”); Characteristics 12. through 14. to the Loan Application Summary, Education Verification Form or other related correspondence (collectively, the “Degree Verification Form”); Characteristics 15. and 16. to the “ Credit Report;” and Characteristic 17. to a borrower’s pay stub, borrower’s W-2 or other related correspondence (collectively, the “Income Verification Documentation”).

For purposes of our procedures and at your instruction:

 

    with respect to our comparison of Characteristic 3., differences of $1.00 or less are noted to be “in agreement;”

 

    with respect to Characteristic 15., if three borrower FICO scores were observed on the Credit Report, we used the median score or if two borrower FICO scores were observed on the Credit Report, we used the lower score;

 

    with respect to Characteristic 16., if three co-borrower FICO scores were observed on the Credit Report, we used the median score or if two co-borrower FICO scores were observed on the Credit Report, we used the lower score; and

 

    with respect to our comparison of Characteristic 17., for those Sample Loans for which the “borrower income flag” set forth on the Statistical Loan File, indicated “projected,” we were instructed by the Company to compare the gross annual income set forth on the Statistical Loan File to the lesser of (i) the gross annual income, based on the respective borrower’s “residency specialty” (as set forth on the Loan Application Summary), set forth on the “Residency Income Projection Table,” provided to us by representatives of the Company, or (ii) $225,000. Further, differences of 5.0% or less of the gross annual income indicated on the Statistical Loan File are noted to be “in agreement.”

The student loan documents described above, including any information obtained from the servicing system, and any other related documents used in support of the Characteristics were provided to us by representatives of the Company and are collectively referred to hereinafter as the “Loan Documents.” We were not requested to perform, and we did not perform, any procedures with respect to the preparation or verification of any of the information set forth on the Loan Documents and we make no representations concerning the accuracy or completeness of any of the information contained therein. In certain instances, our procedures were performed using data imaged facsimiles or photocopies of the Loan Documents. In addition, we make no representations as to whether the Loan Documents are comprehensive or valid instruments or reflect the current prevailing terms with respect to the corresponding Sample Loans.

Agreed-Upon Procedures’ Findings

The results of the foregoing procedures indicated that the Characteristics set forth on the Statistical Loan File were found to be in agreement with the above mentioned Loan Documents, except as described in Appendix A. Supplemental information is contained on Appendix B.

******

We make no representations as to the (i) actual characteristics or existence of the underlying documents or data comprising the student loans underlying the Statistical Loan File or the conformity of their characteristics with those assumed for purposes of the procedures described herein, (ii) existence or ownership of the student loans or (iii) reasonableness of any of the aforementioned assumptions, information or methodologies.

It should be understood that we make no representations as to questions of legal interpretation or as to the sufficiency for your purposes of the procedures enumerated in the preceding paragraphs. Also, such procedures


would not necessarily reveal any material misstatement of the information referred to above. The information provided to us, including the information set forth in the Statistical Loan File, is the responsibility of the Company.

We were not engaged to conduct, and did not conduct, (i) an audit conducted in accordance with generally accepted auditing standards or (ii) an examination or a review conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants, the objective of which would be the expression of an opinion or limited assurance on the accompanying information. Accordingly, we do not express such an opinion, limited assurance, or any other form of assurance, including reasonable assurance. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We have no responsibility to update this report for events or circumstances occurring after the date of this report.

None of the engagement, procedures or report was intended to address, nor did they address, the (i) conformity of the origination of the assets to stated underwriting or credit extension guidelines, standards, criteria or other requirements, (ii) value of collateral securing such assets or (iii) compliance of the originator of the assets with federal, state, and local laws and regulations.

None of the engagement, procedures or report were intended to satisfy, nor did they satisfy, any criteria for due diligence published by a nationally recognized statistical rating organization.

This report is intended solely for the information and use of the Specified Parties identified above and is not intended to be and should not be used by anyone other than these Specified Parties.

 

Yours truly,
/s/ Deloitte & Touche LLP


Appendix A to Independent Accountants’ Report on Applying Agreed-Upon Procedures issued by Deloitte & Touche LLP dated April 3, 2017.

In applying our agreed-upon procedures as outlined above, we noted the following:

 

Exception
Description
Number

  

Exception Description

1    One difference in borrower degree program.
2    One difference in gross annual income.

The information above reflects the procedures performed and is subject to the conditions set forth in the agreed-upon procedures report to which this appendix is attached.


Appendix B to Independent Accountants’ Report on Applying Agreed-Upon Procedures issued by Deloitte & Touche LLP dated April 3, 2017 (REDACTED).

Supplemental Information Related to the Findings Set Forth on Appendix A

 

Exception
Description
Number
  

Sample Loan

Number

   Characteristic   

Characteristic

set forth on the

Statistical Loan

File

  

Characteristic set

forth on or derived

from the Loan

Documents

1   

[REDACTED]

  

Borrower degree program

  

Other - Check

  

Dentist

2   

[REDACTED]

  

Gross annual income

   $183,270.36    $248,675.64

The information above reflects the procedures performed and is subject to the conditions set forth in the agreed-upon procedures report to which this appendix is attached.