Sector developments and company hires

USAUT noteholders bag successor servicer
KBRA reports that it has received an omnibus amendment, assignment, assumption and consent agreement on each outstanding US Auto Funding Trust (USAUT) securitisation specifying that Westlake Portfolio Management (WPM) has been assigned as successor servicer and the servicing fee has increased to 4.10%, from 3.75%. WPM has assumed the duties and obligations of the servicer, USASF Servicing, a wholly owned subsidiary of USASF Holdco.

This assignment and change to the servicing fee were permitted through amendments to the sale and servicing agreements, following the consent of the majority noteholders and majority certificateholders. In addition, the agreements amended the administration agreements to allow for the majority noteholders to remove the administrator and/or grantor trust trustee without cause.

US Auto Finance currently remains the administrator, Wilmington Trust remains the grantor trust trustee for USAUT 2020-1 and USAUT 2021-1 and BNY Mellon for USAUT 2022-1.

KBRA downgraded the ratings on six classes of notes and maintained the watch downgrade status on all notes across three USAUT transactions, which were already on watch downgrade due to deteriorating performance, a reporting error resulting in cumulative gross and cumulative net losses being understated for six months, and a potential EOD and service replacement event. To date, an EOD has not occurred.

According to the May 2023 distribution reports, there were 27,819 receivables with an outstanding principal balance of approximately US$403.6m across the three USAUT deals.

In other news…

EMEA
Gallagher Re has recruited Jin Shah as international head of ILS sales and distribution, based in London. He was previously client director, ILS and banking at RMS, which he joined in October 2004.

North America
Brightwood Capital Advisors has appointed Eric Pratt as chief credit officer. In this role, Pratt will oversee Brightwood's existing portfolio, as well as play an important role in the firm's analysis of new investments. He brings more than 20 years of experience in credit and risk management to the team.

Pratt has an established record of establishing risk governance frameworks, structuring transactions with middle market and large-cap clients and regulatory engagement. Most recently, he served as md, global head of corporate and investment banking credit portfolio management at Wells Fargo, where he established a new credit portfolio function to enhance loan portfolio management and risk control capabilities. Before that, he held various senior leadership positions at Mizuho, Deutsche Bank (including senior credit officer for leveraged and structured finance credit), JPMorgan and Procter & Gamble.