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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM ABS-15G
ASSET-BACKED SECURITIZER
REPORT PURSUANT TO SECTION 15G OF
THE SECURITIES EXCHANGE ACT OF 1934
Check the appropriate box to indicate the filing obligation to which this form is intended to satisfy:
☐ | Rule 15Ga-1 under the Exchange Act (17 CFR 240.15Ga-1) for the reporting period |
to
Date of Report (Date of earliest event reported)
Commission File Number of securitizer:
Central Index Key Number of securitizer:
Name and telephone number, including area code, of the person to contact in connection with this filing.
Indicate by check mark whether the securitizer has no activity to report for the initial period pursuant to Rule 15Ga-1(c)(1) ☐
Indicate by check mark whether the securitizer has no activity to report for the quarterly period pursuant to Rule 15Ga-1(c)(2)(i) ☐
Indicate by check mark whether the securitizer has no activity to report for the annual period pursuant to Rule 15Ga-1(c)(2)(ii) ☐
☒ | Rule 15Ga-2 under the Exchange Act (17 CFR 240.15Ga-2) |
Central Index Key Number of depositor:
Laurel Road Prime Student Loan Trust 2017-C
(Exact name of issuing entity as specified in its charter)
Central Index Key Number of issuing entity (if applicable): Not Applicable
Central Index Key Number of underwriter (if applicable): Not Applicable
George Sclavos, Chief Financial Officer
Darien Rowayton Bank, (646) 681-0215
Name and telephone number, including area code, of the person to contact in connection with this filing
SEC 2860 (6-15) Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.
Item 2.01 | Findings and Conclusions of a Third Party Due Diligence Report Obtained by the Issuer. |
Attached as Exhibit 99.1 hereto is an agreed-upon procedures report, dated October 31, 2017, obtained by the Securitizer, with respect to certain agreed-upon procedures performed by Deloitte & Touche LLP.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the reporting entity has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Darien Rowayton Bank |
(Securitizer, Depositor or Underwriter) | |||
Date October 31, 2017 | ||||
/s/ George Sclavos |
(Signature)* |
* | Print name and title of the signing officer under his signature. |
Name: George Sclavos
Title: Chief Financial Officer
Exhibit 99.1
Deloitte & Touche LLP | ||
Suite 400 | ||
Harborside Plaza 10 | ||
Jersey City, NJ 07311 | ||
USA
| ||
Tel: +1 212 937 8200 | ||
Fax: +1 212 937 8298 www.deloitte.com |
Darien Rowayton Bank
1001 Post Road
Darien, Connecticut 06820
Independent Accountants Report
on Applying Agreed-Upon Procedures
We have performed the procedures described below, which were agreed to by Darien Rowayton Bank (the Company) and Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC (collectively, the Other Specified Parties 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 Laurel Road Prime Student Loan Trust 2017-C, Student Loan Asset-Backed Notes.
The Company is responsible for the information provided to us, including the information set forth in the Statistical Loan File (as defined herein). 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
Representatives of the Company, provided us (i) on October 11, 2017 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 October 11, 2017, with respect to 2,065 student loan contracts (the Initial Statistical Loan File), (ii) October 25, 2017 with an additional 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 October 25, 2017, with respect to an additional 356 student loan contracts (the Subsequent Statistical Loan File) and (iii) on October 27, 2017 with a supplemental data file containing the borrower income flag and original borrower and original co-borrower FICO scores for each of the Sample Loans (as defined below) (the Supplemental Loan File). We were instructed by representatives of the Company to append the Initial Statistical Loan File with the information set forth on the Subsequent Statistical Loan File and Supplemental Loan File. The Initial Statistical Loan File, as adjusted, is hereinafter referred to as the Statistical Loan File.
At the Companys instruction, we randomly selected (i) 80 student loan contracts that were indicated as closed on the Initial Statistical Loan File (the Initial Sample Loans) and (ii) 20 student loan contracts from the Subsequent Statistical Loan File (the Additional Sample Loans and, together with the Initial Sample Loans, the Sample Loans). 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.
Member of Deloitte Touche Tohmatsu Limited |
Characteristics
| ||||||||
1. | Loan number (informational purposes only) | 9. | Current loan balance | |||||
2. | Loan type (fixed or adjustable) | 10. | Last payment date* | |||||
3. | Original loan balance | 11. | Borrower degree program | |||||
4. | Original loan term | 12. | School name | |||||
5. | First disbursement date | 13. | Graduation year | |||||
6. | Maturity date | 14. | Original borrower FICO | |||||
7. | Interest rate | 15. | Original co-borrower FICO (if applicable) | |||||
8. | Borrower state | 16. | Gross annual income** |
* | For Sample Loans that indicated a last payment amount greater than $0.00 on the Servicing System Query. |
** | For Sample Loans that were not identified as DRB In-School MBA | Application on the Statistical Loan File. |
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 10. to data queries, provided by the Company on October 26, 2017, from their servicing system (collectively the Servicing System Query); Characteristics 11. through 13. to the Loan Application Summary, Education Verification Form or other related correspondence (collectively, the Degree Verification Form); Characteristics 14. and 15. to the Credit Report; and Characteristic 16. to a borrowers pay stub, borrowers 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 deemed to be in agreement; |
| with respect to our comparison of Characteristic 10., differences of 30 days or less are deemed to be in agreement |
| with respect to our comparison of Characteristic 14., (i) if three original borrower FICO scores were observed on the Credit Report, we used the median score or (ii) if two original borrower FICO scores were observed on the Credit Report, we used the lower score; |
| with respect to our comparison of Characteristic 15., (i) if three original co-borrower FICO scores were observed on the Credit Report, we used the median score or (ii) if two original co-borrower FICO scores were observed on the Credit Report, we used the lower score; and |
| with respect to our comparison of Characteristic 16., 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, as derived from the Residency Income Projection Table provided to us by representatives of the Company, based on the respective borrowers residency specialty (as set forth on the Loan Application Summary) and (ii) $225,000. Further, differences of 5.0% or less of the gross annual income indicated on the Statistical Loan File are deemed 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.
******
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. We have no responsibility to update this report for events and circumstances that occur subsequent to the date of this report.
This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants We were not engaged to conduct, and did not conduct, an (i) audit conducted in accordance with generally accepted auditing standards or (ii) 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 conclusion, respectively on the accompanying information. Accordingly, we do not express such an opinion or conclusion, 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.
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
October 31, 2017
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