Donna M. Mitchell is a financial journalist based in the New York metro area with expertise covering structured finance, commercial real estate, and wealth management. Her work has appeared in Forbes, Next Avenue, Financial Planning and National Real Estate Investor.
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The pool is diversified, with its top obligor accounting for 3.2% of the pool balance, and the top 10 obligors account for 14.1%.
March 14 -
Coupons range from 4.4% on the noted rates P1/A1+ from Moody's and S&P, to 5.66% on the notes rated Ba1/BB+.
March 14 -
FHF sources almost all its loans—most recently 96% in 2024—from franchise dealers.
March 13 -
The deal is structured as a public securitization, under Rule 144A, and is supported by lending indirectly through more than 1,100 partnerships across the country.
March 13 -
The pass-through certificates are supported by a full pool of amortizing loans, which have no interest-only periods.
March 12 -
The United Auto 2025-1 series of notes has a more mixed subordination element compared with the previous deal.
March 11 -
Tax liens have so-called super priority in repayments, even placing ahead of a previously filed mortgage.
March 11 -
A set of performance-related triggers—cash trapping and expense reserve—will help maintain cash flow to the notes.
March 10 -
Full documentation accounts for a little over a third of the pool, but otherwise FICO scores are high, as are weighted average liquid reserves.
March 7 -
From the Q3 2021 to the early 2024 vintages, cumulative gross loss (CGL) levels had been trending up, likely due to consumer credit normalizing, due to inflationary pressures.
March 6
