Press Release|ABS

KBRA Releases Research – Consumer ABS and Distressed Servicing Transfers

6 Sep 2024   |   New York

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KBRA releases research examining distressed servicing transfers in consumer ABS transactions.

Approximately one year has passed since the used car dealership and financing companies American Car Center and U.S. Auto Sales, Inc. declared bankruptcy and the servicing of their related ABS transactions was transferred. These servicing transfers provided examples of how a distressed servicing transfer could unfold and impact credit performance. This KBRA report provides an overview of backup servicing arrangements and explains the transfer of servicing responsibilities to successor servicers. Further, it considers the potential impact of validation periods required by the Fair Debt Collection Practices Act (FDCPA) and Regulation F.

Click here to view the report.

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KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1005785

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