ASSET REPRESENTATIONS REVIEWER

Securitization Services

Because of our unique position in the finance industry, we are one of only a few entities that perform ARR services

The ARR Role

The role of ARR is very new to the capital markets and ABS issuers. There is little guidance on exactly what specifically the ARR must do or how the tasks are to be performed. ABS issuers would be best served by appointing firms with intimate knowledge of the asset class – especially the nuances of:

     ⦁ Auto retail installment contracts
     ⦁ Best practices in loan file due diligence
     ⦁ State by state and federal regulations and compliance issues
     ⦁ Loan servicing systems and associated analytics
     ⦁ General auto loan credit policies and procedures

Because of the potentially fluid nature of the ARR role in these early stages of implementation, ABS issuers should seek familiar partners who:

     ⦁ Are knowledgeable on the asset class,
     ⦁ Can be flexible and cooperative, and
     ⦁ Are expert in the ABS issuance structure and process

In addition, as legal documentation is still developing, ABS issuers need to ensure that its legal counsel can work well with the ARR.

General Observations

  • Many of the same skills that make Center Street the premier choice for portfolio due diligence also apply to our role as asset representations reviewer.
  • Center Street has reviewed the contract-level representations and warranties delivered by ABS issuers in numerous transactions and is confident of our ability to perform the required review on such matters.
  • Center Street has served as ARR for other ABS issuers and can provide real time updates on developments and other feedback to future ABS issuers.
  • Our team members have worked as bankers and attorneys on public and private ABS transactions and are very familiar with ABS documentation.
  • As part of the ARR mandate, we will work with ABS issuers and counsel to suggest any necessary and appropriate revisions to the underlying ABS transaction documents.
  • In addition, Center Street has developed customized “Pass/ Fail” tests and drafted new documentation tailored to its ABS issuer clients so is well suited to work with new clients.

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