Donna M. Mitchell

Borrowers are considered prime in this pool, but Fitch Ratings notes that delinquency rates have been increasing since 2022.

Total hard credit enhancement will represent 4.5% of the note balance, and initial reserves amounting to 2.0% of the pool.

Almost the entire pool of mortgages will fund primary residences and were underwritten using full documentation.

Loans on used cars, extended to borrowers with prime credit characteristics, make up the reference pool of assets.

Aside from that, three collateral performance trigger events—delinquency, default and extension rate—that can force an early amortization are structured into the deal.

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%.

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+.

FHF sources almost all its loans—most recently 96% in 2024—from franchise dealers.

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.

The pass-through certificates are supported by a full pool of amortizing loans, which have no interest-only periods.

The United Auto 2025-1 series of notes has a more mixed subordination element compared with the previous deal.

Tax liens have so-called super priority in repayments, even placing ahead of a previously filed mortgage.

A set of performance-related triggers—cash trapping and expense reserve—will help maintain cash flow to the notes.

Full documentation accounts for a little over a third of the pool, but otherwise FICO scores are high, as are weighted average liquid reserves.

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.

GM Financial Revolving Receivables Trust, 2025-1 has a five-year-long revolving period, risking exposure to assets with longer terms.

Fitch notes that 74.8% of the collateral pool, made up entirely of 3,103 loans, is backed by trucking—or transportation—equipment.

The fund closes ahead of separate news that it formed the Private Real Estate Credit platform, which will originate senior and subordinated commercial real estate loans.

It is the program's second issuance to come to market with a pool made up entirely of consumer loans.

Excess cash flow will pay timely interest and protect against realized losses in the rated certificates before being paid out to the class X notes.