fraud stoppers pma · cial loans are evaluated for credit-worthiness based on prior loan...

Page | 1 FRAUD STOPPERS PMA COPYRIGHT 2007-2020

-All Rights Reserved-

FRAUD STOPPERS PMA Office: 800-459-1215 Fax: 844-318-3941

Website: www.fraudstoppers.org

Email: [email protected]

BLOOMBERG AUTO LOAN

SECURITIZATION REPORT “This is a Securitization Analysis Report for Auto Loans”

Prepared For:

(NAME HERE)

Address:

(ADDRESS HERE)

Prepared On:

(DATE HERE)

http://www.fraudstoppers.org/

http://www.certifiedforensicloanauditors.com/



SECTION 1: TRANSACTION DETAILS

I. TRANSACTION DETAILS BORROWER & CO-BORROWER:

BORROWER CO-BORROWER

(NAME HERE)

(NAME HERE)

CURRENT ADDRESS ORIGINATION ADDRESS

(ADDRESS HERE)

(ADDRESS HERE)

TRANSACTION PARTICIPANTS

AMOUNT FINANCED LOAN SERVICER SELLER

(LOAN AMOUNT)

WestAmerica Bank

Dealer Center

PO Box 1260

Suisun City, CA 94585

Delano Chevrolet Buick

GMC

ORIGINAL LENDER LOAN TYPE CASH PRICE

(NAME OF LENDER)

72 Month Fixed 4.99%

Amortizing Retail Finance

Contract

1) Motor Vehicle &

Accessories: $39,995.00

2) Optional Extended

Service Contract & Gap

Insurance: $3,490.00

3) Tax & Fees: $3,865.38

Total: $47,350.38



SECTION 2: SECURITIZATION

SECURITIZATION PARTICIPANTS:

ORIGINATOR/LENDER SPONSOR/SELLER DEPOSITOR

(NAME OF LENDER)

Not Applicable Not Applicable

ISSUING ENTITY TRUSTEE MASTER SERVICER/

SERVICER

Not Applicable Not Applicable Not Applicable

CUSTODIAN CUT – OFF DATE CLOSING DATE

Not Applicable Not Applicable Not Applicable



SECTION 3: FORECLOSURE

Recorded Events on the Loan Including Foreclosure Issues and Securitization

Recorded Chain of Title Possession Chain of Note Possession

Date Original Title Date Note Holder

Date to be determined, if any

Instrument #

To be determined, if any

Official Records,

(NAME OF BORROWER)

(Borrower)

(NAME OF LENDER)

(Lender)

(NAME OF LENDER)

(Lender)

Principal Amount:

(LOAN AMOUNT)

REPORT SUMMARY

Retail Installment Sale Contract – Simple Finance Charge (with Arbitration Provision):

▪ On (LOAN DATE) executed a Retail Installment Sale Contract in the amount of (LOAN

AMOUNT). In a search of State of (NAME OF STATE) Uniform Commercial Code records,

there were no findings of the perfection of the security interest. The original lender of contract

is (NAME OF LENDER). Loan is serviced by (NAME OF SERVICER).

California Business Portal Search had no findings for “Alvarez Jaime” in (NAME OF STATE)

in a search on dt2. Screen print with no findings result not available and Examiner made a note

of the non-findings on date of search.



BLOOMBERG SEARCH SECTION

On dt2 I researched the Bloomberg online Database at the request of Fraud Stoppers PMA on behalf of whose

personal property is noted herein above. The Loan Level Data search conducted using Bloomberg’s terminal

did not reveal matching characteristics based on the Original Amount: (LOAN AMOUNT); Origination Date:

(LOAN DATE); Location of Property:(NAME OF STATE); Property Type: Motor Vehicle. Examiner did

NOT locate a prospective REMIC TRUST within the Securities Exchange Commission (SEC) website that

matches the characteristics for the possibility of securitizing this loan. Bloomberg snapshots of loan servicing

agent (NAME OF SERVICER) are shown below.

The primary possibilities for the location of this loan are in the portfolio of loans held in inventory or for sale

by (NAME OF LENDER) or subsidiary that now acts as servicing agent for loan. While (NAME OF

LENDER) originated the loan, any subsequent purchaser may not have recorded its interest in the subject loan

pursuant to the requirements of the (NAME OF STATE) Commercial Code. No UCC filing necessary to

perfect the security interest to a purchasing party was evident in a State of (NAME OF STATE) search.

(NAME OF LENDER) may also have placed the loan into a private placement securitized trust exempt from

SEC reporting requirements and which was not reported to Bloomberg, LP; or for which (NAME OF

LENDER) used as secured borrowings to raise additional funds, the economic effect of which would be a sale.

(This space intentionally left blank)



BANK PROFILE

In addition to individual and corporate services, bank provides accounts receivable financing

and inventory lines of credit



SECURITY DESCRIPTION: EQUITY

(Public offerings are not available)



SECURITY DESCRIPTION

(Ratios)



SECURITY DESCRIPTION

(Revenue & EPS)



FINANCIAL ANALYSIS



KEY EXECUTIVES OF BANK



PEOPLE PROFILES



SUMMARY

This summary highlights information contained elsewhere, or incorporated by reference, into this prospectus sup-

plement. As a result, it does not contain all of the information that may be important to you or that you should consider before

investing in the notes. You should read this entire prospectus supplement and the accompanying prospectus, including the “Risk

Factors” section and the documents incorporated by reference, which are described under “Available Information.”

The Company

The Company is the parent company of Santander Bank, National Association (the “Bank”), a national banking

association; Santander Consumer USA Holdings Inc. (together with its subsidiaries, “SC”), a consumer finance company; San-

tander BanCorp, a financial holding company headquartered in Puerto Rico that offers a full range of financial services through

its wholly-owned banking subsidiary, Banco Santander Puerto Rico; Santander Securities LLC, a broker-dealer headquartered

in Boston, Massachusetts; Banco Santander International, an Edge corporation located in Miami, Florida that offers a full range

of banking services to foreign individuals and corporations based primarily in Latin America; and Santander Investment Secu-

rities Inc., a registered broker-dealer located in New York providing services in investment banking, institutional sales and

trading and offering research reports of Latin American and European equity and fixed-income securities; as well as several

other subsidiaries. The Company is headquartered in Boston, Massachusetts and the Bank’s home office is in Wilmington,

Delaware. The Company is a wholly-owned subsidiary of Banco Santander, S.A. (“Banco Santander”). The Company’s two

largest subsidiaries by asset size and revenue are the Bank and SC.

The Bank’s primary business consists of attracting deposits and providing other retail banking services through its

network of retail branches, and originating small business loans, middle market, large and global commercial loans, multifamily

loans, residential mortgage loans, home equity lines of credit, and auto and other consumer loans throughout the Mid-Atlan-

tic and Northeastern areas of the United States, focused throughout Pennsylvania, New Jersey, New York, New Hampshire,

Massachusetts, Connecticut, Rhode Island, and Delaware. The Bank uses its deposits, as well as other financing sources, to fund

its loan and investment portfolios.

SC is a specialized consumer finance company focused on vehicle finance and third-party servicing. SC’s primary

business is the indirect origination and securitization of retail installment contracts (“RICs”) principally through manufacturer-

franchised dealers in connection with their sale of new and used vehicles to subprime retail consumers.

In conjunction with a ten-year private label financing agreement with FC that became effective May 1, 2013 (the

“Chrysler Agreement”), SC offers a full spectrum of auto financing products and services to FC customers and dealers under

the Chrysler Capital brand (“Chrysler Capital”), the trade name used under the Chrysler Agreement. These products and services

include consumer RICs and leases, as well as dealer loans for inventory, construction, real estate, working capital and revolving

lines of credit.

In June 2018, SC announced that it was in exploratory discussions with FC regarding the future of FC’s U.S. finance

operations. FC has announced its intention to establish a captive U.S. auto finance unit and indicated that acquiring Chrysler

Capital is one option it will consider. Under the Chrysler Agreement, FC has the option to acquire, for fair market value, an

equity participation in the business offering and providing financial services contemplated by the Chrysler Agreement. The

likelihood, timing and structure of any such transaction, and the likelihood that the Chrysler Agreement will terminate, cannot

be reasonably determined. On July 11, 2018, in order to facilitate discussions regarding the Chrysler Agreement, FC and the

Company entered into a tolling agreement pursuant to which the parties agreed to preserve their respective rights, claims and

defenses under the Chrysler Agreement as they existed on April 30, 2018.

https://www.sec.gov/Archives/edgar/data/811830/000119312518339710/d654987d424(NAME OF

BORROWER).htm Capital Standards

https://www.sec.gov/Archives/edgar/data/811830/000119312518339710/d654987d424b3.htm

https://www.sec.gov/Archives/edgar/data/811830/000119312518339710/d654987d424b3.htm



The federal banking agencies have risk-based capital adequacy guidelines intended to provide a measure of capital ade-

quacy that reflects the degree of risk associated with a banking organization’s operations for both transactions resulting

in assets being recognized on the balance sheet as assets, and the extension of credit facilities such as letters of credit and

recourse arrangements, which are recorded as off balance sheet items. Under these guidelines, nominal dollar amounts of

assets and credit equivalent amounts of off balance sheet items are multiplied by one of several risk adjustment percent-

ages, which range from 0% for assets with low credit risk, such as certain U.S. government securities, to 1250% for assets

with relatively higher credit risk, such as certain securitizations. A banking organization’s risk-based capital ratios are

obtained by dividing its qualifying capital by its total risk-adjusted assets and off balance sheet items.

p.5

The Company’s positioning of the balance sheet for rising interest rates has resulted in the purchase of floating rate

corporate bonds, federal agency bonds, mortgage-backed securities, and short-term state and municipal bonds. As of

December 31, 2015, substantially all of the Company’s investment securities continue to be investment grade rated by

one or more major rating agencies. In addition to monitoring credit rating agency evaluations, Management performs its

own evaluations regarding the credit worthiness of the issuer or the securitized assets underlying asset-backed securities.

p.29

Market Risk - Other

Market values of loan collateral can directly impact the level of loan chargeoffs and the provision for loan losses. The

financial condition and liquidity of debtors issuing bonds and debtors whose mortgages or other obligations are securitized

can directly impact the credit quality of the Company’s investment portfolio requiring the Company to recognize other

than temporary impairment charges. Other types of market risk, such as foreign currency exchange risk and commodity

price risk, are not significant in the normal course of the Company's business activities.

p. 40

The unrealized losses on the Company’s investment securities were caused by market conditions for these types of in-

vestments, particularly changes in risk-free interest rates. The Company evaluates securities on a quarterly basis including

changes in security ratings issued by ratings agencies, changes in the financial condition of the issuer, and, for mortgage-

backed and asset-backed securities, delinquency and loss information with respect to the underlying collateral, changes

in the levels of subordination for the Company’s particular position within the repayment structure and remaining credit

enhancement as compared to expected credit losses of the security. Substantially all of these securities continue to be

investment grade rated by a major rating agency. In addition to monitoring credit rating agency evaluations, Management

performs its own evaluations regarding the credit worthiness of the issuer or the securitized assets underlying asset backed

securities.

p. 60

CONSUMER LOAN HOLDINGS DISCLOSURE

Loan Portfolio



The Company originates loans with the intent to hold such assets until principal is repaid. Management follows written

loan underwriting policies and procedures which are approved by the Bank’s Board of Directors. Loans are underwritten

following approved underwriting standards and lending authorities within a formalized organizational structure. The

Board of Directors also approves independent real estate appraisers to be used in obtaining estimated values for real

property serving as loan collateral. Prevailing economic trends and conditions are also taken into consideration in loan

underwriting practices.

All loan applications must be for clearly defined legitimate purposes with a determinable primary source of repayment,

and as appropriate, secondary sources of repayment. All loans are supported by appropriate documentation such as current

financial statements, tax returns, credit reports, collateral information, guarantor asset verification, title reports, appraisals,

and other relevant documentation.

Commercial loans represent term loans used to acquire durable business assets or revolving lines of credit used to finance

working capital. Underwriting practices evaluate each borrower’s cash flow as the principal source of loan repayment.

Commercial loans are generally secured by the borrower’s business assets as a secondary source of repayment. Commer-

cial loans are evaluated for credit-worthiness based on prior loan performance, borrower financial information including

cash flow, borrower net worth and aggregate debt.

Commercial real estate loans represent term loans used to acquire real estate to be operated by the borrower in a commer-

cial capacity. Underwriting practices evaluate each borrower’s global cash flow as the principal source of loan repayment,

independent appraisal of value of the property, and other relevant factors. Commercial real estate loans are generally

secured by a first lien on the property as a secondary source of repayment.

Real estate construction loans represent the financing of real estate development. Loan principal disbursements are con-

trolled through the use of project budgets, and disbursements are approved based on construction progress, which is

validated by project site inspections. The real estate serves as collateral, secured by a first lien position on the property.

Residential real estate loans generally represent first lien mortgages used by the borrower to purchase or refinance a

principal residence. For interest-rate risk purposes, the Company offers only fully-amortizing, adjustable-rate mortgages.

In underwriting first lien mortgages, the Company evaluates each borrower’s ability to repay the loan, an independent

appraisal of the value of the property, and other relevant factors. The Company does not offer riskier mortgage products,

such as non-amortizing “interest-only” mortgages and “negative amortization” mortgages.

For loans secured by real estate, the Bank requires title insurance to insure the status of its lien and each borrower is

obligated to insure the real estate collateral, naming the Company as loss payee, in an amount sufficient to repay the

principal amount outstanding in the event of a property casualty loss.

- 33 -



Consumer installment and other loans are predominantly comprised of indirect automobile loans with underwriting based

on credit history and scores, personal income, debt service capacity, and collateral values.

For management purposes, the Company segregates its loan portfolio into three segments. Loans originated by the Com-

pany following its loan underwriting policies and procedures are separated from loans purchased from the FDIC. Loan

volumes have declined due to problem loan workout activities, particularly with purchased loans, and reduced volumes

of loan originations. In Management’s opinion, current levels of competitive loan pricing do not provide adequate forward

earnings potential. As a result, the Company has not currently taken an aggressive posture relative to loan portfolio growth.

The following table shows the composition of the loan portfolio of the Company by type of loan and type of borrower,

on the dates indicated:

This is an admission that the bank does NOT directly hold such “indirect” automobile loans.

Loans may be held in the name of the car dealer for which WestAmerica Bancorporation

through WestAmerica Bank provides financing thus, in economic terms, taking the loan off

the books of the dealer. It also indicates that debt collector WestAmerica Bank is NOT a real

party in interest isasmuch as it has not purchased such loans itself but only lent against at

least some loans similar to the subject loan if not the subject loan itself. Loan level detail is

not available for bank internal financial statements and is a matter for discovery.



AFFIDAVIT OF FACTS

STATE OF CALIFORNIA )

) sv.: AFFIDAVIT

COUNTY OF LOS ANGELES )

RE: (NAME HERE) I, ARTHUR A BERNARDO, a citizen of the United States and the State of California over the age

of 21 years, and declare as follows, under penalty of perjury that the facts stated herein are true,

correct and complete. The undersigned believes them to be true and admissible as evidence in a

court of law, and if called upon as a witness, will testify as stated herein:

1. I have utilized the Bloomberg Professional Service for more than 10 years, and I was Certified

in (2012) by Bloomberg, LP through Ambassador Program (40 hours) (AMS) I have completed the required training and engaged in continuing education with Bloomberg – both online and at Bloomberg live training events, to stay abreast with Bloomberg’s latest progress and developments. I have the requisite knowledge and the trained ability to navigate and perform effective searches on the Bloomberg terminal.

2 I am an Expert Analyst on Residential Mortgage Backed Securities Data and my

qualifications, expertise and experience provide me with the background necessary to certify

the audit services and to be qualified as an expert in this field. I have led instruction and

completed more than 1,000 hours of live instruction for students on the topic of residential

mortgage backed securities and Mortgage Securitization Auditing. I have supervised the

production of more than ten thousand (10,000) Securitized Analysis Reports in residential

real estate mortgage investigation in 50 states, the District of Columbia, Puerto Rico, the

United Kingdom, Ireland, South Africa, and Australia. I have supervised expert witness

testimony of my staff members including Michael Carrigan as an Expert Witness in Court

on more than 20 occasions, and have trained auditors in California, Florida, Nevada, New

York, New Jersey, Texas and Virginia and via the Internet in webinar format.

3. In the course of my profession, I have read and or reviewed hundreds of loan-related documents

including, but not limited to: credit card agreements, credit card statements, mortgages/deeds

of trust; promissory notes; allonges; assignments; home loan disclosures; underwriting

and processing documents; settlement statements; appraisals; affidavits and trust documents

such as receivable agreement; mortgage loan purchase agreement; form 8-k reports, S3

registration statements, pooling and servicing agreements; form 10-D with periodic

distribution reports; and 424(b)(5) prospectus and prospectus supplements.

4. I regularly perform research of the securitization, sale and transfer aspects of credit

card receivables, residential mortgage loans and mortgage-backed /assets-backed

securities with respect to the particular facts in a given foreclosure and credit card case.



Additionally, I have over five years’ experience in researching publicly offered securities

on the Securities and Exchange Commission’s (“SEC”), Electronic Data Gathering,

Analysis, and Retrieval System (“EDGAR”) website.

5. The contents of this report are factual, but it is provided for informational purposes only

and is not to be construed as "legal advice." The customer has been strongly advised to seek

legal consultation from a competent legal professional in connection with the content of this

report and how to properly use it. I am available for court appearances, in person or via phone,

for further clarification or explanation of the information provide herein, if necessary.

By:

______________________________________________________________

ARTHUR A BERNARDO

Certified Mortgage Securitization Auditor / Bloomberg Specialist



STATE OF CALIFORNIA )

) sv.: AFFIDAVIT

COUNTY OF LOS ANGELES )

On ____________, 2020 before me, _________________________________________

(Notary Public)

personally appeared ARTHUR A BERNARDO, who proved to me on the basis of satisfactory

evidence to be the man whose name is subscribed to the within instrument and acknowledged to me

that he executed the same in his authorized capacity, and that by his signature on the instrument the

person, or the entity upon behalf of which the person acted, executed the instrument under the penalty

of perjury.

I certify under PENALTY OF PERJURY under the laws of the State of California that the

foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature __________________________ (Seal)

My commission Expires __________________________

A Notary public or other completing this certificate verifies only the identity of the individual who signed the

document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

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