Loan Participation Portfolio: LP#

Transcription

1 6801 Parkwood Page 1 Boulevard Plano TX Loan Participation Portfolio: LP# Please read all information for specific details and instructions A well-capitalized credit union located in the mountain west is offering a pool of Fixed-Rate, Closed-End Direct and Indirect Originated New and Used Automobile Loans for sale through Catalyst Corporate Federal Credit Union s loan participation program. The portfolio is offered on a Non-Recourse basis. Loan Portfolio Highlights As of 5/31/2018 Current Portfolio Balance (100%): $120,697, Seller Retention # of Loans in Portfolio Retained by Seller: $ 12,069, % 5,671 Amount Available for Sale: $ 108,627, Minimum Avg./ Wtd. Average Maximum Original Loan Balances $ 5, $ 22, $ 102, Original Term Current Loan Balances $ 5, $ 21, $ 102, Current Remaining Term Credit Loan Interest Rates 2.74% 5.19% 18.00% Loan to Value 11% 102% 140% Vehicle model years: Collateral Composition Direct: Indirect: Total: % of Portfolio: Geographic Concentration West: New $ 1,024, $ 28,641, $ 29,666, % # of Loans 99.26% Used $ 48,692, $ 42,338, $ 91,031, % % of Portfolio 41% 59% Loan portfolio stratification reports begin on page 6. Loan Participation Highlights Large diversified loan portfolio. Borrower credit scores are updated annually by the lender. Attractive risk adjusted yield for a short 1.96 year average life. Modest price premium lower impact to yield from early loan prepayments. Experienced loan participation seller. The information herein is believed to be reliable and has been obtained from sources believed to be reliable. Catalyst Corporate Federal Credit Union (Catalyst) makes no representation as to the accuracy or completeness of such information. Prospective buyers of this loan participation must conduct their own independent due diligence review and make a decision accordingly. Catalyst does not render legal or accounting advice. The buyers and seller are solely responsible for the accounting and legal requirements associated with this transaction.

2 Loan Participation Portfolio: LP# Page 2 WTD. AVG. PASS THROUGH INTEREST RATE: 4.87% PURCHASE PRICE: CPR: 4.240% Charge Offs % Risk Adjusted NET YIELD: 3.680% Please see yield matrix below for more information. Yield Average Life CPR (0 ABS) 10 CPR (.84 ABS) 12 CPR (1.0 ABS) 18 CPR (1.5 ABS) The yields are calculated based on the price, the weighted average net pass-through interest rate and the weighted average remaining maturity of the loans. The actual yield on the portfolio will vary due to a variety of factors including but not limited to the composition of the pool, the credit performance and the speed of prepayments in the portfolio. Yields in the table are estimates based on the indicated parameters and are not guaranteed. Minimum Purchase Amount: $5,000, CPR (1.75 ABS) No Loss 4.438% 4.327% 4.305% 4.240% 4.218% 1x Annualized NCO 3.877% 3.767% 3.745% 3.680% 3.659% 1.5x Annualized NCO 3.597% 3.487% 3.465% 3.400% 3.379% 2x Annualized NCO 3.317% 3.207% 3.185% 3.120% 3.099% Projected Settlement Date: July 11, 2018 Loan Participation Details Non- Recourse: Buyers assume their pro rata share of the credit risk in the portfolio. Annualized net charge offs are projected to be 56 basis points annually. Seller has documentation supporting credit performance which is included with the due diligence information. Clean Up call = 5%. When the remaining par balance outstanding falls below 5% of the original 100% portfolio balance the participation may be paid off by the seller. Based on historical prepayment experience, the portfolio average life is approximately 1.96 years.

3 Loan Participation Portfolio: LP# Page 3 Due Diligence Information: A complete package of due diligence information is available including a random sample of loans. Additional loan files are available upon request. Please Submit a Completed Confidentiality Agreement to Review the Due Diligence Information. Loan Participation Agreement: The seller has provided a loan participation agreement which is included with the due diligence information. Buyers should review this document in conjunction with the due diligence review. Catalyst has not reviewed the terms of this agreement as it relates to buyer and seller rights and responsibilities. Purchase Commitment Process: Purchase Commitments are accepted on a first come first served basis. A Purchase Commitment Form is provided with the due diligence packet. Upon completion of your review, you may submit your purchase commitment. Please send this form to Catalyst Corporate via to loanparticipations@catalystcorp.org. Accrued Interest at Settlement: Buyers will pay their pro rata share of accumulated accrued interest on the loans as of the cut-off date calculated using the pass through interest rate for the number of days in which interest has accrued for each loan. Principal and Interest Payment calculation: Paid monthly; interest calculated on actual/365 basis. Pass-through interest rate is the actual loan interest minus 32 bps servicing fee. The actual pass through rate will vary based on the composition of the loan pool. The Net Weighted Average Interest Rate was 4.87% as of the 5/31/2018 data file. Monthly Reporting and Remittances: The selling credit union will provide the monthly remittances and reporting to each credit union buyer by the 15th business day of each month. Loan portfolio stratification reports begin on page 6.

4 Loan Participation Portfolio: LP# Page 4 Loan Participation Instructions and Information If you are interested in pursuing a purchase of this loan participation: 1. Submit a completed Confidentiality Agreement Form for access to the due diligence information. This form may be found on Catalyst Corporate s website at Please send the form to Catalyst Corporate via to loanparticipations@catalystcorp.org. 2. Upon receipt of the executed Confidentiality Agreement, Catalyst Corporate will provide access to the Loan Participation functions in TranZact, which houses the due diligence information. You will receive instructions from a Catalyst Corporate team member regarding set-up and access. 3. The due diligence information will be available for your review through June 29, Once you have concluded your due diligence review, a completed Purchase Commitment Form must be submitted to Catalyst Corporate via at loanparticipations@catalystcorp.org. Purchase Commitment Forms will be accepted on a first come first served basis in the order received. This form is included with the due diligence information and is due on or before the close of the due diligence period on June 29, All purchase orders shall be deemed unconditional and irrevocable offers to purchase on the terms identified herein, and in accordance with the terms and conditions set on the Loan Participation Agreement that is included with the due diligence information. 6. All offers are subject to acceptance by the selling credit union. Settlement Prior to settlement in July, an updated portfolio loan listing that reflects principal pay downs since the date of the original file will be provided by the seller. The balances of the loans as of the date of this file (the cut-off date) will be used for preparing purchase documents and settlement. The settlement date will be scheduled following execution and delivery of the Loan Participation Agreement(s) by all parties involved in the LP. Catalyst Corporate FCU - Loan Participation Team Loan Participations: option 6 Jeff Hamilton: loanparticipations@catalystcorp.org jhhamilton@catalystcorp.org

5 Loan Participation Portfolio: LP# Page 5 Stratification Reports PORT FOLIO SUMMARY De scription Minimum Ave ra ge / Weighted Average Maximum Original Loan Balances 5, , , Current Loan Balances 5, , , Interest Rate 2.74% 5.19% 18.00% Credit Original T erm Remaining T erm Loan to Value 11% 102% 140% ST RAT IFICAT ION BY CREDIT SCORE Credit Level # of Loans Current Balance % of Loan Weighted Avg Rate Weighted Avg LT V ,839, % 6.94% 96.77% ,731, % 6.62% % ,927, % 5.82% % ,421, % 5.41% % ,624, % 5.00% % ,989, % 4.66% % and above ,162, % 4.36% 97.64% ,697, % ST RAT IFICAT ION BY CURRENT BALANCE Current Balance of Loan # of Loans Current Balance % of Loan Weighted Avg Rate Weighted Avg T erm $ $9, ,949, % 5.85% $10, $19, ,249, % 5.54% $20, $29, ,606, % 5.09% $30, $39, ,969, % 5.05% $40, $49, ,503, % 4.90% $50, $59, ,869, % 4.77% $60, and above 66 4,549, % 4.72% ,697, % ST RAT IFICAT ION BY ORIGINAL T ERM No. Months in Origina l T erm # of Loans Current Balance % of Loan Weighted Avg Rate Weighted Avg T erm Weighte d Avg ,644, % 5.21% ,402, % 5.48% ,829, % 5.44% ,780, % 5.20% ,040, % 5.09% ,697, % ST RAT IFICAT ION BY REMAINING T ERM No. Months Remaining # of Loans Current Balance % of Loan Weighted Avg Rate Weighte d Avg Cre dit Weighte d Avg ,401, % 5.23% ,084, % 5.67% ,518 23,056, % 5.46% ,676 37,336, % 5.33% ,540 49,817, % 4.90%

6 Loan Participation Portfolio: LP# Page 6 ST RAT IFICAT ION BY RAT E Interest Rate # of Loans Current Balance % of Loan Weighted Avg Rate Cre dit 2.50% % 1 7, % 2.74% % % 9 189, % 2.81% % % , % 3.19% % % 102 2,514, % 3.41% % % 267 5,690, % 3.68% % % ,603, % 3.92% % % ,840, % 4.13% % % ,896, % 4.38% % % ,144, % 4.62% % % ,941, % 4.90% % % 267 5,940, % 5.11% % % 245 4,832, % 5.38% % % 185 3,791, % 5.62% % % 198 4,816, % 5.89% % % 84 1,639, % 6.14% % % 100 1,792, % 6.38% % % 109 1,962, % 6.63% % % 123 2,296, % 6.90% % % 329 5,849, % 7.51% % % 235 4,323, % 8.52% % % 178 2,974, % 9.49% % % 73 1,098, % 10.47% % % , % 11.38% % % , % 12.43% % % 4 66, % 13.43% % % % 0.00% % % % 0.00% % % , % 16.99% % % 1 12, % 17.34% % - 18% 9 86, % 18.00% ST RAT IFICAT ION BY MODEL YEAR Model Year # of Loans Current Balance % of Loan Weighted Avg Rate Cre dit ,331, % 6.15% ,232, % 6.32% ,807, % 5.96% ,326, % 5.57% ,680, % 5.58% ,670, % 5.34% ,421, % 5.19% ,407, % 5.02% ,884, % 5.01% ,491, % 4.97% ,350, % 4.65% , % 4.28% ST RAT IFICAT ION BY LT V LT V # of Loans Current Balance % of Loan Weighted Avg Rate Cre dit 0% - 59% 416 4,886, % 5.05% % - 69% 263 3,995, % 4.95% % - 79% 494 8,459, % 5.04% % - 89% ,514, % 5.24% % - 99% ,264, % 5.21% % - 109% 1,023 24,439, % 5.16% % - 119% ,255, % 5.32% % - 129% ,899, % 5.18% % - 140% 433 9,982, % 5.24%

7 Loan Participation Portfolio: LP# Page 7 ST RAT IFICAT ION BY LOAN T YPE Loan T ype # of Loans Current Balance % of Loan Weighted Avg Rate Weighte d Avg Cre dit Weighte d Avg Direct New Auto Loans 36 1,024, % 4.60% Direct Used Auto Loans 2,818 48,692, % 5.28% Indirect New Auto Loans ,641, % 4.94% Indirect Used Auto Loans 1,965 42,338, % 5.28%

8 Loan Participation Portfolio: LP# Page 8 Risk Considerations The following summary is not a complete list of all possible risks. The items mentioned below represent a general summarization of potential risks. This summary is not meant to replace the deliberate due diligence mechanisms of the buyer. General Economic Conditions The performance of the loans may vary depending upon regional and national economic factors, such as unemployment rates, employment conditions, interest rates, bankruptcy rates, and similar factors which affect the ability of consumers to meet their debt obligations. Prepayments In the event and to the extent that a prepayment is paid, prepayments will prematurely reduce the Portfolio s outstanding principal balance and thus reduce the Portfolio s interest earning ability. The greater the amount of prepayment, the lower the Portfolio s return will be. Prepayments cannot be controlled by the seller or servicer and much of the performance results are dependent upon current economic conditions. Loan Losses The following information is provided to assist in interpreting loan loss statistical information with respect to the Portfolio. o Loan losses can be calculated annually or cumulatively. Cumulative loan loss is found by calculating the percentage of original loan amount that results in loan loss from inception to the Portfolio s final maturity (when no active loans remain). o Annualized loss rates are useful for determining the impact of losses on the Portfolio s yield as well as determining the timing and amount of the allowance for loan loss funding. Annualized loan loss can be determined by calculating the percentage of a Portfolio s average yearly balance that results in loan loss. o Economic Climate - high unemployment and low interest rates are two leading factors that affect prices and therefore loan losses. Important Disclosures The information contained in this Offering does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Past performance does not guarantee future performance. Calculations or projections included in this Offering are for illustrative purposes only and are not guaranteed to be accurate or complete. Unauthorized downloading, re-transmission, storage in any medium, copying, redistribution, reproduction, or republication for any purpose of the information contained in this Offering is strictly prohibited. Catalyst Corporate is not responsible for any damages (direct, indirect, special, economic, or consequential) in respect of any use of this Offering and any of its content. Catalyst Corporate Federal Credit Union (Catalyst Corporate) does not service or guarantee the performance of the loans. Any questions or concerns about the loan participation portfolio (including due diligence information, when it is provided) must be discussed with the credit union seller and resolved BEFORE submitting a purchase order. (Seller contact information is provided with the due diligence packet)