EX-99.1 2 cpsfive_abs15g-ex9901.htm ACCOUNTANT'S 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 2021-C – Data File Procedures

 

We have performed the procedures described below on the specified attributes identified by the Company in an electronic data file entitled “bb.Pool_2021-C_052821_Indicative.xlsx,” provided by the Company on June 4, 2021, containing information on 7,569 automobile retail installment sale contracts (“Receivables”) as of May 28, 2021 (the “Data File”), which we were informed are intended to be included as collateral in the offering by CPS Auto Receivables Trust 2021-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 the intended purposes of assisting specified parties in evaluating the accuracy of the specified attributes identified by the Company 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, percentages, and Contract Dates were within $1.00, 0.1%, and one (1) day, respectively.

 

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

 

·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.

 

 

 

   

 

 

Page 2

 

·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 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 Installment Sale Contract or as a stand-alone document for direct loans), Title Document, Insurance Document, and Credit Application (not applicable for direct loans). The Receivable File, provided to us by the Company, was represented to be a scanned image of the original Receivable File. We make no representation regarding the validity, enforceability, or authenticity of the information in the Receivable File.

 

·

 

We were instructed by the Company to perform the procedures described below on the Receivables in the Data File.

 

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 listed below to the corresponding information contained in the Receivable File. The Specified Parties indicated that the absence of any of the specified documents in the Receivable File or the inability to agree the indicated information from the Data File to the Receivable File for each of the attributes identified, utilizing the Instructions, as applicable, constituted an exception. The Receivable File documents are listed in the order of priority until such attribute was agreed.

 

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, Title Document
   
Vehicle Model Installment Sale Contract, Federal Truth in Lending Disclosure Statement, Proof of Insurance Document

 

 

 

   

 

 

 

Page 3

 

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

 

On June 25, 2021, the Company provided an electronic data file entitled “bb.Pool_2021-C_052821_ Indicative V2.xlsx,” containing revised information on the Receivables included in the Data File (the “Revised Data File”). The Company instructed us to perform the procedures described in “B” above on the Sample Receivables in the Revised Data File. We found the information to be in agreement. The exceptions listed in Exhibit C were not found in the Revised Data File.

 

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.

 

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 identified by the Company 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 to you.

 

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 indicated in the Data File and Provided Information, without verification or evaluation of such information and instructions by us; therefore, we express no opinion or any other form of assurance regarding (i) the reasonableness of the information or instructions provided to us by the Company, (ii) the physical existence of the Receivables, (iii) the reliability or accuracy of the Receivable Files which were 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 2, 2021

 

 

   

 

 

Exhibit A

 

Title Documents

 

Certificate of Title Application for Title
Application for Certificate of Ownership Dealer Guarantee of Title Delivery
CPS Guarantee of Title Application for Registration
Dealer, Rebuilder or Lessor’s Report of Sale or Lease Application for Dealer Assignment
Electronic Title in the CPS Title Management System Lien Entry Form

 

Acceptable Company Names

 

CPS, Inc. CPS
CPS Incorporated Consumer Portfolio Services
Consumer Portfolio Services In Consumer Portfolio Services, Inc.
Consumer Portfolio Svcs., Inc. Consumer Portfolio Serv
Consumer Portfolio Servic Consumer Portfolio Srvs
Consumer Portfolio Srv, INC Consumer Portfolio Services, I
Consumer Portfolio Inc Consumer Portfolio S
Consumer Portfolio Svcs C.P.S. Inc.

 

Insurance Documents

 

Insurance Card Agreement to Provide Insurance
Agreement for Purchaser to Provide Accidental Physical Damage Coverage Verification of Coverage
Insurance Coverage Acknowledgment Insurance Binder
Insurance Declaration Page Proof of Insurance/Authorization to Release Insurance Information
Confirmation of Accidental Physical Damage Insurance Memorandum of Insurance
Insurance Verification Form Insurance Verification system screen shot

 

 

 

 A-1 

 

 

Exhibit B

 

The Sample Receivables
Sample
Receivable #		 Receivable
Number1		 Sample
Receivable #		 Receivable
Number1		 Sample
Receivable #		 Receivable
Number1
1 2021C001 51 2021C051 101 2021C101
2 2021C002 52 2021C052 102 2021C102
3 2021C003 53 2021C053 103 2021C103
4 2021C004 54 2021C054 104 2021C104
5 2021C005 55 2021C055 105 2021C105
6 2021C006 56 2021C056 106 2021C106
7 2021C007 57 2021C057 107 2021C107
8 2021C008 58 2021C058 108 2021C108
9 2021C009 59 2021C059 109 2021C109
10 2021C010 60 2021C060 110 2021C110
11 2021C011 61 2021C061 111 2021C111
12 2021C012 62 2021C062 112 2021C112
13 2021C013 63 2021C063 113 2021C113
14 2021C014 64 2021C064 114 2021C114
15 2021C015 65 2021C065 115 2021C115
16 2021C016 66 2021C066 116 2021C116
17 2021C017 67 2021C067 117 2021C117
18 2021C018 68 2021C068 118 2021C118
19 2021C019 69 2021C069 119 2021C119
20 2021C020 70 2021C070 120 2021C120
21 2021C021 71 2021C071 121 2021C121
22 2021C022 72 2021C072 122 2021C122
23 2021C023 73 2021C073 123 2021C123
24 2021C024 74 2021C074 124 2021C124
25 2021C025 75 2021C075 125 2021C125
26 2021C026 76 2021C076 126 2021C126
27 2021C027 77 2021C077 127 2021C127
28 2021C028 78 2021C078 128 2021C128
29 2021C029 79 2021C079 129 2021C129
30 2021C030 80 2021C080 130 2021C130
31 2021C031 81 2021C081 131 2021C131
32 2021C032 82 2021C082 132 2021C132
33 2021C033 83 2021C083 133 2021C133
34 2021C034 84 2021C084 134 2021C134
35 2021C035 85 2021C085 135 2021C135
36 2021C036 86 2021C086 136 2021C136
37 2021C037 87 2021C087 137 2021C137
38 2021C038 88 2021C088 138 2021C138
39 2021C039 89 2021C089 139 2021C139
40 2021C040 90 2021C090 140 2021C140
41 2021C041 91 2021C091 141 2021C141
42 2021C042 92 2021C092 142 2021C142
43 2021C043 93 2021C093 143 2021C143
44 2021C044 94 2021C094 144 2021C144
45 2021C045 95 2021C095 145 2021C145
46 2021C046 96 2021C096 146 2021C146
47 2021C047 97 2021C097 147 2021C147
48 2021C048 98 2021C098 148 2021C148
49 2021C049 99 2021C099 149 2021C149
50 2021C050 100 2021C100 150 2021C150

_____________  

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

 

Exceptions List

 

Sample
Receivable #		 Receivable
Number		 Attribute Per
Data File		 Per
Receivable File
117 2021C117 Obligor’s First Name and Last Name (Redacted) (Redacted)1
121 2021C121 Obligor’s First Name and Last Name (Redacted) (Redacted)2

__________

1 Obligor’s First Name was different by one letter between the Data File and Receivable File

2 Obligor’s Last Name was different between the Data File and Receivable File

 

 

 

 

 

 

 

 

 

 C-1