When a company sells automobiles with seller-provided financing and holds the notes generate by the sale, they are creating a portfolio that can be sold on the Financial Markets.

These auto notes then can be graded as a pool according to the credit scores of the car purchasers and sold as a portfolio.

When selling portfolios, the creditworthiness of the holder of the portfolio also comes into play because the seller may have to provide warranties and representations to the funding source due to the scrutiny of the underwriting guidelines used in creating the notes.

Of further importance relating to the underwriting lies in the fact that the portfolio may not only be sold in the Secondary Market, but also securitized and sold in the Primary Market.

The outstanding value in the notes, which the note holder owns, can only be priced based upon the residual value of the notes--the remaining cash flows (the note payments, which include the outstanding principal balances and accrued interest).

The credit grade of the notes making up the portfolio may be evaluated from A to D, and performing or non-performing. That means even if a collective pool of notes is non-performing or in default, Meridian Diversified Funding can still provide a bid for the purchase of these portfolios.

When submitting a portfolio to us for purchase, the following information should be provided in Microsoft Excel® spreadsheet form:

• Name and address of the purchaser/borrower and borrower's social security number.
• Credit score of the purchaser.
• Make, year, and model of the vehicle.
• Vehicle Identification Number (VIN).
• State where the vehicle is registered.
• Interest rate of the note.
• Original amount of the note.
• Amount of each periodic payment.
• Remaining principal balance of the note.
• Frequency of payment (monthly, semimonthly, biweekly, or weekly).
• Original number of payments.
• Number of payments made to date.
• Number of payments remaining.
• Date of the first payment made.
• Date of the last payment made.
• Due date of each payment.
• Whether the account has been sent out for collections

Once we have this information, we can then provide a bid for the purchase of the portfolio.

For more information on the sale of your vehicle portfolios, please contact Meridian Diversified Funding at 1-866-583-1507 or use this link to our CONTACT US page.

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