Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 915

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 5
Chunk 915
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 financings. All of our active securitizations are structured
as secured financings.

 35 

When structured to be treated as a secured financing
for accounting purposes, the subsidiary is consolidated with us. Accordingly, the sold automobile contracts and the related debt appear
as assets and liabilities, respectively, on our consolidated balance sheet. We then periodically (i) recognize interest and fee income
on the contracts, and (ii) recognize interest expense on the securities issued in the transaction. For automobile contracts acquired before
2018, we also periodically record as expense a provision for credit losses on the contracts; for automobile contracts acquired after 2017
we take account of estimated credit losses in our computation of a level yield used to determine recognition of interest on the contracts.

Since 1994 we have conducted
103 term securitizations of automobile contracts that we originated under our regular programs. As of December 31, 2024, 17 of those securitizations
are active and all are structured as secured financings. We generally conduct our securitizations on a quarterly basis, near the beginning
of each calendar quarter, resulting in four securitizations per calendar year. However, we completed only three securitizations in 2020.
In April 2020 we postponed our planned securitization due to the onset of the pandemic and the effective closure of the capital markets
in which our securitizations are executed. Subsequently we successfully completed securitizations in June and September 2020.

Our recent history of term securitizations is summarized
in the table below:

    Recent Asset-Backed Securitizations
  
    $ in thousands
  
    Period 
    Number of Term Securitizations 
    Amount of
                                                                   Receivables 
  
    2018 
    4 
    883,452 
  
    2019 
    4 
    1,014,124 
  
    2020 
    3 
    741,867 
  
    2021 
    4 
    1,145,002 
  
    2022 
    4 
    1,537,383 
  
    2023 
    4 
    1,352,114 
  
    2024 
    4 
    1,533,854 

Generally, prior to a securitization
transaction we fund our automobile contract acquisitions primarily with