Donna M. Mitchell

All AHART 2024-1's assets are backed by a pool of prime-quality auto loans and retail installment sales contracts, which the lender originated either directly or through relationships with franchised motor dealer channels.

Fitch also noted that the loan pool consists primarily of 30- to 40-year fully amortizing loans, accounting for 88.5% of the pool balance.

The contracts and installment loans were extended to prime and non-prime borrowers, most of which (81.49%) are financing new vehicles as of the deal's closing date.

A reserve account is initially 0% at closing. The target will shift between 1%, 2% and 3%, depending on whether the three-month average excess spread falls below certain thresholds.

Any risk of mis-matching of fixed and floating rates among the assets and transaction notes is minimal. Between 80%-90% of the notes pay a fixed rate, while 78% of the loans are fixed rate.

Aside from the pool primarily made up of second and junior liens in the pool, 82.2% of the loans were underwritten with alternative documentation.

A vast majority of the deal, 87.17% of the collateral, as a percentage of the assets' principal balance, has a 60-month original term to maturity.

Blue Own Asset Leasing's notes benefit from a reserve account representing 1% of the pool balance, overcollateralization, and a senior-subordinate repayment structure.

All the assets benefit from Federal Housing Administration insurance a sequential payment structure and the subordination of servicer advances, if there is no servicer termination event.

The notes receive credit enhancement from overcollateralization, and an initial reserve.