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Speedpay® Named Exclusive Payments Provider for Flagship Credit Acceptance

Speedpay, Inc., a Western Union® company, announced its renewed relationship with Flagship Credit Acceptance, a leading auto-finance provider with a nationwide network of more than 9,400 dealers. As part of its five-year deal, which positions Speedpay as Flagship’s electronic billing presentment and exclusive payments provider, Flagship will be Speedpay’s first auto finance client to offer the moBills® solution through Walletron.

“Our commitment to Speedpay is a testament to the confidence we have in their array of solutions – namely, their mobile payment options – that will help make it easier for our customers to pay their bills on time,” said David Bertoncini, Chief Operating Officer at Flagship Credit Acceptance. “Aligning with Speedpay means we will have greater efficiency in billing, access to top-notch customer service, and a reliable stream of payments.”

As part of its agreement with Speedpay to implement Walletron moBills®, Flagship will provide customers with the option to view their statement or pay their bill from within their smartphones’ mobile wallets. Users will receive light-up phone notifications reminding them to make or schedule a payment before a bill is due, and those who make automatic payments can also receive smartphone notifications confirming their payment has been made. The customer’s Flagship bill will update automatically in their mobile wallet, providing accurate account information in a centralized place on their phone.

“The moBills® solution enables Flagship to offer their customers a convenient, mobile-centric view into their account that complements their lifestyles. No more remembering their account numbers or log-in information before being able to make a payment – essential functions given the on-the-go demands of today’s consumers,” said Frank Lockridge, Head of Speedpay. “It’s one of the many options we offer our clients to help them reach their customers in the right place, at the right time, to facilitate timely payments.”

As a subsidiary of The Western Union Company, a leader in global payment services, Speedpay offers clients billing and payments solutions through various channels and across multiple industries, helping reduce costs, increase efficiency and improve customer satisfaction. Speedpay services also maintain an average of 99.98 percent uptime and offer 24/7 support, 365 days a year.

To learn more about Speedpay’s comprehensive electronic bill payment and presentment solutions, visit speedpay.com.

About Speedpay, Inc.

Speedpay provides electronic bill presentment and payment (EBPP) solutions that help keep your business running. An industry leader given its footprint, financial strength, service reliability and availability, Speedpay is dedicated to helping billers collect better payments. Our clients benefit from our highly consultative approach – ensuring we deliver customized payments offerings that address your business challenges and provide overall efficiency, ultimately saving you time and money. From web to mobile, eBill, IVR or CSR, Speedpay offers some of the most highly configurable channels available on the market, specifically designed for the way people want to pay bills.

A wholly owned subsidiary of E-Commerce Group Products, Inc., Speedpay has been at the forefront of the electronic payments industry since 1989, and was acquired by Western Union® in 2002.

For more information, visit www.speedpay.com.

Flagship Continues to Reduce Loan Terms, Latest ABS Shows

Flagship Credit Acceptance continues to reduce loan terms, according to Kroll Bond Ratings Agency’s latest ABS presale report.

Flagship began originating 75-month loans and 78-month loans in 2013. However, starting in mid-year 2016, Flagship started to reduce the percentage of its loan terms greater than 72 months to just under 2% of total originations, from approximately 5% in prior years, according to the presale. As of July 30, Flagship only has 1.8% of these longer term loans, compared with 1.5% in the lender’s previous transaction.

Flagship’s latest securitization — Flagship Credit Auto Trust 2017-3 — is a $185.2 billion transaction backed by subprime auto loan receivables. The weighted average Fico score is 597, up from 595 in FCAT 2017-2, according to the report. This transaction includes loans originated from both the Flagship Credit Acceptance and CarFinance Capital LLC branded origination channels, according to the report.

Amid heightened regulatory scrutiny where Department of Justice subpoenaed several subprime issuers — including Flagship and subsidiary CarFinance Capital LLC — regarding past originations and securitizations, Flagship is maintaining a “cautious approach” to automated approvals with approximately 2% of the applications that were not auto-declined being auto-approved, the report said.

Separately, starting in May, Flagship began using direct refinance scorecard 2.0 for the direct lending program that is originated through CarFinance.com. Flagship is also investing in an automated approval system, which the lender has tested since the beginning of the year, according to the report.

At midyear, Chadds Ford, Pa.-based Flagship and CarFinance had 828 employees, and a managed portfolio of approximately $3 billion; it originated approximately $398 million in the first half of 2017, down from $868.4 million over the same period in 2016.

KBRA Assigns Preliminary Ratings to Notes Issued by Flagship Credit Auto Trust 2017-3

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by Flagship Credit Auto Trust 2017-3 (FCAT 2017-3), an auto loan ABS transaction.

FCAT 2017-3 is collateralized by approximately $185.2 million of subprime auto loan receivables as of July 31, 2017 out of an expected collateral balance of approximately $231.1 million after completion of the prefunding period. The transaction includes a prefunding feature that allows up to 20% of the collateral pool to be funded after closing. The prefunding period is two months but the prefunding is expected to be completed by September 30, 2017 based on current origination volume. The preliminary ratings reflect the initial credit enhancement levels of 46.00% for the Class A notes, 31.75% for the Class B notes, 20.25% for the Class C notes, 11.00% for the Class D notes, and 5.50% for the Class E notes. Credit enhancement consists of overcollateralization, subordination of junior notes, cash reserves and excess spread. This transaction is Flagship’s third securitization in 2017 and its twentieth securitization overall.

This transaction includes loans originated from both the Flagship Credit Acceptance and CarFinance Capital LLC branded origination channels. On January 1, 2015, Perella Weinberg Partners’ Asset Based Value Strategy closed a merger of its two auto loan platforms, FCA and CarFinance. FCA’s management team, led by Mike Ritter, has combined the FCA and CarFinance operations over the past two years following the merger.

KBRA applied its U.S. Auto Loan ABS methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Flagship’s historical static pool data. KBRA also conducted an operational assessment on the originator and servicer, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, Flagship Credit Auto Trust 2017-3 Pre-Sale Report, which was published today at www.kbra.com.

Preliminary Ratings Assigned: Flagship Credit Auto Trust 2017-3

ClassRatingExpected Initial Principal Balance
AAAA (sf)$129,410,000
BAA (sf)$32,930,000
CA (sf)$26,570,000
DBBB (sf)$21,380,000
EBB (sf)$12,710,000

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled Flagship Credit Auto Trust 2017-3 Representations and Warranties Disclosure

Related Publications available at www.kbra.com.

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