CPSS · Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. executed its largest-ever securitization transaction, closing on April 22, 2026, involving the transfer of approximately $526.17 million in subprime automotive receivables from CPS to its wholly-owned subsidiary CPS Receivables Five LLC, and subsequently to CPS Auto Receivables Trust 2026-B. The Trust issued $514.07 million in senior subordinate asset-backed notes across five classes to qualified institutional buyers in a private offering. This marks CPS's 59th such securitization since 2011 and the 42nd consecutive deal achieving triple-A ratings on the senior Class A notes from Moody’s (Aaa) and DBRS Morningstar (AAA), reflecting strong structural credit support and CPS’s proven servicing track record.

Key protections for noteholders include a 1.00% cash reserve account (initially funded as 1% of the receivable pool) and 2.30% overcollateralization at inception, with mechanisms to accelerate principal payments to achieve target overcollateralization levels of the lesser of 7.70% of the original pool balance or 19.20% of the then-outstanding pool, but no less than 1.50% of original. Security derives solely from the fixed pool of amortizing receivables, serviced by CPS, with Computershare Trust Company, N.A. acting as trustee, collateral agent, and backup servicer. Importantly, while treated as long-term debt of CPS for accounting and tax purposes, the notes are obligations only of the Trust, with receivables unavailable to CPS or affiliate creditors in bankruptcy, providing ring-fencing.

The weighted average coupon of 5.51% across classes, with average lives ranging from 0.68 years (Class A) to 4.04 years (Class E), supports investor appeal in a subprime auto finance context. CPS retains an optional clean-up call when the pool declines below 10% of initial balance, enabling early transaction wind-down if economically viable. This routine yet materially sized funding event underscores CPS’s ongoing reliance on securitization markets to finance its indirect auto contract purchases from dealerships targeting credit-challenged borrowers.