EX-99.1 2 cps_ex9901.htm INDEPENDENT ACCOUNTANT'S REPORT

Exhibit 99.1

 

 

 

 

Independent Accountants’ Agreed-Upon Procedures Report

 

Consumer Portfolio Services, Inc. (the “Company”)
Citigroup Global Markets Inc.
Capital One Securities, Inc.
(together, the “Specified Parties”)

 

Re: CPS Auto Receivables Trust 2023-B – Data File Procedures

 

We have performed the procedures described below on the specified attributes in an electronic data file entitled “bb.Pool_2023-B_022823_Indicative.xlsx,” provided by the Company on March 10, 2023, containing information on 14,414 automobile retail installment sale contracts (“Receivables”) as of February 28, 2023 (the “Data File”), which we were informed are intended to be included as collateral in the offering by CPS Auto Receivables Trust 2023-B. 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 table below.
  
·The term "Vehicle Mapping" means email correspondence provided by the Company on March 27, 2023, containing the Vehicle Models and Vehicle Makes corresponding to different abbreviations of vehicle model and vehicle make appearing on the Installment Sale Contracts.
  
·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 the following documents for each Sample Receivable (defined below): Installment Sale Contract (not applicable for direct loans), Addendum to the Installment Sale Contract, Retail Installment Sale Contract Simple Interest Finance Charge letter, Federal Truth in Lending Disclosure Statement (within the Installment Sale Contract or a stand-alone document for direct loans), Automobile Assumption Agreement, Title Document, Insurance Document, and/or 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.

 

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, Automobile Assumption Agreement

 

For Sample #132, the Obligor’s First Name in the Data File was different than in the Installment Sale Contract. The Company informed us that this Receivable was transferred to a new Obligor due to the death of the original Obligor listed on the Installment Sale Contract and provided us with an Automobile Assumption Agreement related to the transfer. We compared the Obligor’s First Name and Last Name in the Data File to the corresponding information in the Automobile Assumption Agreement. This was not considered an exception.

 

 

 

 2 

 

 

 

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, Retail Installment Sale Contract Simple Interest Finance Charge letter
   
Annual Percentage Rate (“APR”) Installment Sale Contract, Federal Truth in Lending Disclosure Statement, Retail Installment Sale Contract Simple Interest Finance Charge letter
   
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.

 

We found such information to be in agreement except as listed in Exhibit C.

 

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

 

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 #26, #33, #89, #93, and #111. The Company provided screenshots from the Company’s servicing system for these Sample Receivables indicating they were “Stip Tier 1” (“ST01”) loans, “Stip Tier 2” (“ST02”) loans, or “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.

 

 

 

 

 3 

 

 

 

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
March 29, 2023

 

 

 

 4 

 

 

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
Application for Noting of Lien, Duplicate Title, or Multipurpose Use Registration and Title Application
Application to Title/Reg. A Vehicle Title & License Plate Application
Certificate of Title Title and Registration Application
Dealer Guarantee of Title Delivery Title Application
Dealer, Rebuilder or Lessor’s Report of Sale or Lease Vehicle Application
Direct Lien Receipt from Office of Motor Vehicle Records and Information Vehicle Registration/Title Application for Dealer Sales
Electronic Title in the CPS Title Management System  

 

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 Svs Consumer Portfolio Services LLC
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 Consumer Portfolio Srvcs Inc.
Company’s ELT E-Numbers from different DMV systems  

 

 

 

 A-1 

 

 

Insurance Documents

 

Agreement for Purchaser to Provide Accidental

Physical Damage Coverage

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 A-2 

 

 

Exhibit B

 

The Sample Receivables

 

 

Sample Receivable #

 Receivable Number1 Sample Receivable # Receivable Number1 Sample Receivable # Receivable Number1
1 2023B001 51 2023B051 101 2023B101
2 2023B002 52 2023B052 102 2023B102
3 2023B003 53 2023B053 103 2023B103
4 2023B004 54 2023B054 104 2023B104
5 2023B005 55 2023B055 105 2023B105
6 2023B006 56 2023B056 106 2023B106
7 2023B007 57 2023B057 107 2023B107
8 2023B008 58 2023B058 108 2023B108
9 2023B009 59 2023B059 109 2023B109
10 2023B010 60 2023B060 110 2023B110
11 2023B011 61 2023B061 111 2023B111
12 2023B012 62 2023B062 112 2023B112
13 2023B013 63 2023B063 113 2023B113
14 2023B014 64 2023B064 114 2023B114
15 2023B015 65 2023B065 115 2023B115
16 2023B016 66 2023B066 116 2023B116
17 2023B017 67 2023B067 117 2023B117
18 2023B018 68 2023B068 118 2023B118
19 2023B019 69 2023B069 119 2023B119
20 2023B020 70 2023B070 120 2023B120
21 2023B021 71 2023B071 121 2023B121
22 2023B022 72 2023B072 122 2023B122
23 2023B023 73 2023B073 123 2023B123
24 2023B024 74 2023B074 124 2023B124
25 2023B025 75 2023B075 125 2023B125
26 2023B026 76 2023B076 126 2023B126
27 2023B027 77 2023B077 127 2023B127
28 2023B028 78 2023B078 128 2023B128
29 2023B029 79 2023B079 129 2023B129
30 2023B030 80 2023B080 130 2023B130
31 2023B031 81 2023B081 131 2023B131
32 2023B032 82 2023B082 132 2023B132
33 2023B033 83 2023B083 133 2023B133
34 2023B034 84 2023B084 134 2023B134
35 2023B035 85 2023B085 135 2023B135
36 2023B036 86 2023B086 136 2023B136
37 2023B037 87 2023B087 137 2023B137
38 2023B038 88 2023B088 138 2023B138
39 2023B039 89 2023B089 139 2023B139
40 2023B040 90 2023B090 140 2023B140
41 2023B041 91 2023B091 141 2023B141
42 2023B042 92 2023B092 142 2023B142
43 2023B043 93 2023B093 143 2023B143
44 2023B044 94 2023B094 144 2023B144
45 2023B045 95 2023B095 145 2023B145
46 2023B046 96 2023B096 146 2023B146
47 2023B047 97 2023B097 147 2023B147
48 2023B048 98 2023B098 148 2023B148
49 2023B049 99 2023B099 149 2023B149
50 2023B050 100 2023B100 150 2023B150

 

[1]The 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.

 

 B-1 

 

 

Exhibit C

 

Exception List

 

Sample Receivable # Receivable Number Attribute Per
Data File		 Per
Receivable File
102 2023B102 Annual Percentage Rate 24.650% 24.600%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 C-1