Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 74

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 74
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 Portfolio 

    March 31,  
    March 31,  
    December 31, 

    2025  
    2024  
    2024 

    (Dollars in thousands) 
  
    Average servicing portfolio outstanding 
    $3,572,642  
    $2,993,816  
    $3,209,988 
  
    Annualized net charge-offs as a percentage of average servicing portfolio (2) 
     7.5%  
     7.8%  
     7.6% 

_________________________

(1) All amounts and percentages are based on
the principal amount scheduled to be paid on each automobile contract. 

(2) Net charge-offs include the remaining principal
balance, after the application of the net proceeds from the liquidation of the vehicle (excluding accrued and unpaid interest) and amounts
collected subsequent to the date of charge-off, including some recoveries which have been classified as other income in the accompanying
interim consolidated financial statements. March 31, 2025, and March 31, 2024, percentages represent three months ended March 31, 2025,
and March 31, 2024,, annualized. December 31, 2024, represents 12 months ended December 31, 2024.

Extensions

In
certain circumstances we will grant obligors one-month payment extensions to assist them with temporary cash flow problems. In general,
we are bound by our securitization agreements to refrain from agreeing to more than two such extensions in any 12-month period and to
more than eight over the life of the contract. The only modification of terms is to advance the obligor’s next due date by one month
and extend the maturity date of the receivable by one month. In some cases, a two-month extension may be granted. There are no other concessions
such as a reduction in interest rate, forgiveness of principal or of accrued interest. 

The
basic question in deciding to grant an extension is whether or not we will (a) be delaying the inevitable repossession and liquidation
or (b) risk losing the vehicle as a result of not being able to locate the obligor and vehicle. In both of those situations, the loss
would likely be higher than if the vehicle had been repossessed without the extension. The benefits of granting an extension include minimizing
current losses and delinquencies,