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Universal Special Auto Finance engages Bates White to help launch new subprime auto lending program
WASHINGTON, D.C., April 30, 2007—Universal Special Auto Finance (U-SAF) has launched a new, full-service
Special Auto Finance (SAF) program for subprime auto financing. The program, called Special Auto Finance Series1,
covers all aspects of lending operations, from application generation, through underwriting, servicing and
collections, and, when necessary, liquidation. The program provides a turnkey solution for small to medium sized
financial institutions to invest in the growing subprime auto-lending segment.
In connection with the program, Bates White, LLC, provided economic analysis and helped develop credit policies
and underwriting guidelines, including a cash flow yield model to analyze portfolio credit risk and economic
returns for investors in the SAF program. Bates White also created a sophisticated, credit-score based
underwriting and risk-based pricing approach to approve and price loan contracts.
Bates White continues to provide consulting services to U-SAF by assisting in managing and enhancing
underwriting and pricing practices, and monitoring and evaluating the portfolio default rates and the
resulting portfolio yield. These efforts help U-SAF maximize the portfolio performance.
Development of the Series1 program required close coordination between Bates White and two other companies:
Performance Trust Capital Partners, which U-SAF has engaged to identify potential investors; and CSC, which
handles the boarding and servicing of auto loan contacts originated under the program.
The collaboration between Bates White and CSC furthers the two companies’ relationship. In 2004, CSC
hired Matthew Long, a Partner at Bates White, to serve as its
testifying expert in litigation involving a subprime auto finance portfolio. As part of the engagement,
Bates White examined the portfolio's underwriting and servicing quality, credit risk, and economic performance.
About Universal Special Auto Finance (U-SAF)
Universal Special Auto Finance (Universal) is a capital management company that provides special finance
funding to the automotive dealer market through its SAF SERIES1 lending program. The company’s business
model combines its expertise in the special auto finance market with “best of breed” business
partners to drive the future of special auto finance and deliver an unprecedented product. Dealers benefit
with more control over deal structure; fast, consistent credit decisions; and 24-hour funding. Universal
will launch its dealer product in the first quarter of 2007. For more information please contact Universal
at 866.428.6438 or www.universalsaf.com.
About Computer Services Corporation (CSC)
Computer Sciences Corporation is a leading global information technology (IT) services company. CSC’s
mission is to provide customers in industry and government with solutions crafted to meet their specific
challenges and enable them to profit from the advanced use of technology. With approximately 78,000 employees,
CSC provides innovative solutions for customers around the world by applying leading technologies and
CSC’s own advanced capabilities. These include systems design and integration; IT and business process
outsourcing; applications software development; Web and application hosting; and management consulting.
Headquartered in El Segundo, Calif., CSC reported revenue of $14.6 billion for the 12 months ended
Sept. 29, 2006. For more information, visit the company’s Website at www.csc.com.
About Bates White
Bates White is a consulting firm offering services in economics, finance, and business strategy to leading law firms,
Fortune 500 companies, and government agencies. We provide our clients with a unique combination of quantitative and
analytical expertise, and an understanding of business issues across a range of industries. Bates White has offices
in Washington, D.C., and San Diego, Calif.
www.bateswhite.com
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