First Associates Loan Servicing, LLC Chosen to Provide Back-up Loan Servicing for Open Energy Group

First Associates Loan Servicing, LLC Chosen to Provide Back-up Loan Servicing for Open Energy Group  

Supporting renewable energy as well as a growing commercial peer to peer solar customer base, First Associates Servicing, LLC will now provide back-up loan servicing for Open Energy Group. Based in San Diego, First Associates Loan Servicing is one of the country’s fastest growing loan and lease servicers.

Focused on maximizing returns through the power of renewables, Open Energy Group is a technology-driven investment platform that provides accredited investors with attractive, steady returns from the generation of renewable energy.

“Open Energy opens up an important platform for investors, and we are pleased to offer our innovative servicing solutions to support their growing business,” said First Associates Loan Servicing CEO David Johnson. “With our best-in-class IT infrastructure and ability to deliver service across a wide range of asset classes, First Associates can really simplify the servicing process for businesses of all sizes.”

Including this new relationship with Open Energy Group, First Associates Loan Servicing is dedicated to offering scalable, flexible, secure and compliant loan servicing solutions for consumer finance customers across the globe, including customized technology and customer service. 

“As we continue to innovate in the solar and renewable energy market, we appreciate a back-up servicing partner that is both reliable and state-of-the-art,” said Graham Smith, CEO of Open Energy Group. “Our team and platform is driven by a blend of financial expertise and technology, which makes First Associates an ideal fit.”

About Open Energy Group

Based in New York City, Open Energy Group is a technology-driven investment platform that provides accredited investors with attractive, steady returns from the generation of renewable energy. Open Energy Group offers accredited investors, both retail and institutional, direct access to higher return, lower risk, fixed income products by directly funding the construction and operation of commercial renewable energy power projects in the United States. Based on solar energy project finance fundamentals including contracted cash flows, low technology risk and proven asset managers, Open Energy offers attractive investment opportunities for investors, and accessible capital for builders and operators. For more information, please visit https://www.openenergygroup.com/.

Issuers Fret Over New FICO Score

Issuers Fret Over New FICO Score

 ABA Alert

     The reluctance of Fannie Mae and Freddie Mac to adopt an updated FICO-scoring system further dampens the prospects for a revival of subprime-mortgage securitizations.

     Fair Isaac Corp. unveiled a new version of its credit-scoring program, dubbed "FICO 9," in August. But the mortgage agencies have made it clear they plan to stick with an older formula that dates back to 2003. The concern appears to be that using the updated version would result in lower FICO scores for many borrowers, rendering them ineligible for prime-quality mortgages.

     Fannie and Freddie "feel there is no reason to rock that boat, even if the data they are using are based on pre-financial-crisis conditions," one mortgage banker said. "But the new FICO supposedly gives a better indication of a borrower's creditworthiness in a post- crisis world, which is a strong argument for them to use it."

     The agencies' stance means that, for now at least, they will continue to account for some 90% of the U.S. mortgage market--- leaving little room for subprime-mortgage origination. From a securitization standpoint, it means subprime-loan deals likely will remain stuck in the doldrums for the foreseeable future. 

     From 2010 to 2013, U.S. issuers produced 3-4 subprime deals per year on average, though not a single transaction has come to the market so far this year, according to the Asset-Backed Alert's ABS Database. In 2007, just before the credit crisis exploded, issuers produced a total of $202 billion of subprime- mortgage paper.

     The new FICO- scoring program has become an issue in other asset classes as well, including auto loans, credit cards and student loans. Not only lenders but also rating agencies are wary of adopting the new formula for fear that it could muddy the waters both for issuers and investors.

     "It's being talked about but there's a general ambivalence," said one rating-agency executive. "Everyone wants to see how it actually affects a portfolio, but no one is stepping forward to use it, so it remains an unknown."

     Issuers of bonds backed by consumer receivables currently rely on a FICO program formulated by the San Jose company in 2008.

     FICO scores are only one measure rating agencies rely on in determining the creditworthiness of a collateral pool. They also take into account rations including loan-to-income and loan-to-asset value. But the FICO score is the only metric they use that's based on pre-crisis data. 

First Associates Loan Servicing, LLC completes SSAE16 Audit

First Associates Loan Servicing, LLC completes SSAE16 Audit

First Associates, a leading provider in the consumer loan/lease services market completed its annual SSAE16 II with unqualified report 

SAN DIEGO- November 5, 2013- First Associates is pleased to announce the successful completion of its annual SSAE16 II audit.  First Associates, a leading provider of loan and lease servicing and other support functions for originators and financial institutions, received an unqualified report - again.

 

SSAE 16 is a recognized third-party assurance audit for service providers. In 2011, it effectively replaced its predecessor, the Statement on Auditing Standards No. 70 (SAS 70 Type II), as the leading compliance initiative for service organizations. To ensure a comprehensive audit identified 12 areas of control, including enterprise-wide management systems, policies and procedures, network operations, data, change management, design and development, implementation, security, computer controls, and accounting and billing processes. In business since 1986, First Associates has consistently received unqualified reports.

First Associates received an unqualified report as a result of the audit. An “unqualified report” means the control measures are effective and resulted in no findings. “Receiving an unqualified report from a respected third-party auditor is an important part of our self-governance,” said David Johnson, CEO, First Associates, “Our goal is to make sure every client receives the strict regulation adherence, streamlined processes, and best practices they have come to expect from us. Auditing is just one of the ways we make sure we are delivering on our promises to clients. First Associates’ management understands the ever increasing importance of corporate governance, as well as the impact of the organization's services on our clients' system of internal controls. The successful completion of the 2012 SSAE16 II audit is only part of First Associates’ continued commitment to maintaining a high level of internal control.”

First Associates provides mission critical functionality to its clients in many areas including Backup Servicing across multiple consumer asset classes, Loan and Lease Origination and Servicing, Delinquency Management and other support services such as Regulatory Document Management and Verification Programs. 

About First Associates Loan Servicing

First Associates is the nation’s premier servicing firm comprised of a team of professionals with world class experience, first-rate knowledge and exceptional technology. First Associates provides best-in-class servicing for titled assets and unsecured loan and lease portfolios with a staff that is committed to providing the highest level of service to borrowers while maximizing lender and investor returns. More information is available at www.1stassociates.com.

First Associates Loan Servicing, LLC EVP, Larry Chiavaro to speak at Infocast Distributed Solar Summit

First Associates Loan Servicing, LLC EVP, Larry Chiavaro, to speak at Infocast Distributed Solar Summit

- Larry Chiavaro will speak about, “Solar Securitizations – is the Future Here?” at the Infocast Distributed Solar Summit on November 19^th, 2013-

SAN DIEGO- November 19, 2013- Larry Chiavaro, EVP of First Associates Loan Servicing, will speak at the Infocast Distributed Power Summit in San Diego on Tuesday, November 19^th. Chiavaro will discuss the role of Solar Loan and Lease Servicers and Backup Servicers in solar securitizations.

Chiavaro has insightful views on the key milestones for new asset classes built over years of experience in the consumer finance industry.  At First Associates, Chiavaro has been instrumental in creating the industry’s largest and most rapidly growing Solar Loan and Lease Servicer.  He has also been a key player in bringing new services to market designed to accelerate the growth of companies in the residential solar market.

“The time for the solar industry to tap into the securitization markets is here.  Access to the public capital market will be the next driver of growth in the residential solar market,” said Larry Chiavaro. “The ability to attract a broader investor base for long term debt will be the catalyst for rapid consumer solar adoption.  There have been many other lessors of operating assets that have tapped into the securitization market in the past.  Solar is a new asset class to the market but it has many precedents to draw from. Many of the new services First Associates has rolled out in the last twelve to twenty four months, such as enhanced UCC and PUC filing, and Initial Solar Diagnostic Services are in direct response to our solar clients plans for securitizations.  Our experience with securitized assets in other consumer asset classes allows us to quickly provide what investors, rating agencies, and other participants in these markets require for a successful transaction.”

“The Infocast Distributed Power Summit is the leading gathering place for the industry’s leaders,” said Gretchen Luchsinger, President of Infocast. “First Associates has been a key resource for the industry and a great example of success in the solar services marketplace.  We are pleased to have Mr. Chiavaro join us this year.”

Additional information regarding the Solar Securitization Conference can be found online at http://infocastinc.com/events/dsolarwest13?utm_source=dsolarwest13-PR&utm_medium=FirstAssociates&utm_campaign=MPS

About First Associates Loan Servicing

First Associates is the nation’s premier solar servicing firms comprised of a team of professionals with world class experience, first-rate knowledge and exceptional technology. First Associates provides best-in-class services for solar portfolios including origination and servicing for both lease and loan programs, UCC and PUC filing and management, delinquency management programs, initial diagnostic services and more. Our staff that committed to providing the highest level of service to customers while maximizing lender and investor returns. More information is available at www.1stassociates.com.

About Infocast

For over 25 years, Infocast has produced the highest quality events, tailored to the needs of the industries we serve. We intensively research the marketplace, pulling from an extensive network of experts to give you the information and connections to succeed. For more information, please visit us at www.infocastinc.com.

First Associates Loan Servicing EVP, Larry Chiavaro, to speak at Infocast Solar Securitization Conference

First Associates Loan Servicing EVP, Larry Chiavaro, to speak at Infocast Solar Securitization Conference

Larry Chiavaro will speak about, “The role of the Servicer and Back-up Servicer in Solar Securitizations” at the Infocast Solar Securitization Conference on September 23^rd, 2013

SAN DIEGO- September 17, 2013- Larry Chiavaro, SVP of First Associates Loan Servicing, will speak at the Infocast Solar Securitization Conference in New York on Monday, September 23^rd. Chiavaro will discuss the role of Solar Servicers and Backup Servicers in solar securitizations.

Chiavaro has insightful views on the key milestones for new asset classes built over years of experience in the consumer finance industry.  At First Associates, Chiavaro has been instrumental in creating the industry’s largest and most rapidly growing Solar Servicer.  He has also been a key player in crafting new services and products to accelerate the growth of companies in the solar financing industry.

“Solar securitization is a key driver of growth in the residential solar market,” said Larry Chiavaro. “The ability to attract a broader investor base for long term debt will be the catalyst for rapid consumer solar adoption.  There have been many other lessors of operating assets that have tapped into the securitization market in the past.  Solar is a new asset class to the market but it has many precedents to draw from. The industry is working together to create the common processes, rules and documents that will enable the creation of a strong solar securitization market and First Associates is pleased to be part of that effort.”

“The Infocast Solar Securitization Conference is the leading gathering place for the industry’s deal makers,” said Gretchen Luchsinger, President of Infocast. “We’re pleased to have Mr. Chiavaro join us this year.  He is very well connected in the industry and is always a great source of information and insight.”

Additional information regarding the Solar Securitization Conference can be found online at http://www.infocastinc.com/events/solar-securitization13.

About Infocast

For over 25 years, Infocast has produced the highest quality events, tailored to the needs of the industries we serve. We intensively research the marketplace, pulling from an extensive network of experts to give you the information and connections to succeed. For more information, please visit us at www.infocastinc.com.

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First Associates Loan Servicing to provide New York State Energy Research and Development Authority with Backup Servicing

First Associates Loan Servicing to provide New York State Energy Research and Development Authority with Backup Servicing

Backup Servicing Program will provide additional security for Loan Program

SAN DIEGO – August 15, 2013 – The New York State Energy Research and Development Authority (NYSERDA) has partnered with First Associates Loan Servicing, one of the country’s fastest growing consumer loan and lease servicers, to provide backup servicing for its innovative energy efficiency loan program.

Green Jobs – Green New York, a program established by the State of New York to significantly increase numbers of energy efficiency improvement projects and create clean-energy jobs, includes a revolving loan fund that provides unsecured low-interest loans. Under Governor Andrew M. Cuomo’s Power NY Act of 2011, NYSERDA added a second low-interest loan option, known as On-Bill Recovery Financing, which enables consumers to repay the loan on their utility bill. Both loan options help qualifying homeowners to make their homes more energy efficient with no cash up front. First Associates Loan Servicing is providing backup servicing for both loan options in the event that the master loan servicer fails to perform as required.

Loan servicing for this program includes sending monthly statements to borrowers for monthly payments due under NYSERDA’s Smart Energy (unsecured, direct bill) loans, collecting payments from borrowers and following up with borrowers who are delinquent on loan payments.  For the On-Bill Recovery loans, servicing entails coordinating with the utilities to communicate on-bill loan initiation and to commence collections, and receiving payments collected by the utilities from borrowers.

“Under Governor Cuomo, New York State is actively working to help homeowners and businesses reduce their energy costs,” said Francis J. Murray Jr., President and CEO, NYSERDA. “Through programs and funding created by the Green Jobs – Green New York Act and the Power NY Act, the State is delivering significant value to residents, including decreased energy use and carbon emissions.

In working with the capital markets and rating agencies, First Associates played a critical role in bringing our financing successfully to market.”   

“NYSERDA is actively growing the pool of capital available for energy efficiency loans through an innovative and timely structure,” said David Johnson, CEO of First Associates Loan Servicing. “We’ve partnered with many state programs on energy efficiency and solar programs.  We believe this segment of the financing ecosystem is key to making lower energy costs for consumers an achievable reality.”

About First Associates Loan Servicing

First Associates is one of the nation's premier consumer servicing firms and comprised of a team of professionals with a world-class experience, first-rate knowledge and exceptional technology. First Associates provides best-in-class servicing for titled assets and unsecured loan portfolios with a staff that is committed to providing the highest level of service to borrowers while maximizing lender and investor returns. More information is available at www.1stassociates.com.

About NYSERDA

NYSERDA, a public benefit corporation, offers objective information and analysis, innovative programs, technical expertise, and funding to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce their reliance on fossil fuels.  NYSERDA professionals work to protect our environment and create clean-energy jobs. NYSERDA has been developing partnerships to advance innovative energy solutions in New York since 1975. For more information, visit http://nyserda.ny.gov or follow us on Twitter, Facebook, YouTube, Instagram.

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