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Fuyuan 2017-2 Retail Auto Mortgage Loan: 28 August 2017

The seventh in a series of transactions where the notes will be backed by a pool of individual auto mortgage loans originated in the People's Republic of China by Ford Automotive Finance (China) Limited.

FAFC was established on 6 June 2005 in Shanghai as a non-bank financial institution under the laws of the PRC and is a wholly owned subsidiary of Ford Motor Credit Company LLC (USA). FAFC is an automotive finance company licensed to conduct all activities within the business scope of automotive finance, with the exception of leasing. These activities include providing retail loans to consumers for the purchase of vehicles, making loans to dealers to purchase vehicles from the manufacturer and other business approved by the CBRC.

Eligibility Criteria for the Loans (include): the borrower was a citizen of the PRC or a resident of Hong Kong Special Administrative Region, Macao Special Administrative Region or Taiwan, or was a resident of a foreign country who had continuously resided within the territory of the PRC for a period of at least one year at the time the loan was originated; the loan is denominated and payable in RMB; the financed vehicle was manufactured by Ford, CAF or their affiliates, including joint ventures, or is a Ford-brand vehicle; was a new vehicle at the time the loan was originated; the loan requires the borrower to make equal monthly payments of interest and principal which amortise the outstanding principal balance of the loan to zero over its term; at least two scheduled monthly payments have been made on the loan.

The pool consists of 60,346 floating rate “Standard Retail Loan” contracts advanced to 60,343 borrowers, where the average outstanding principal balance is Rmb66,284 and the largest is for Rmb396,387. The WA LTV ratio at origination was 58.64% and the WA seasoning is 6.46 months.

Risk Retention: The subordinated notes, which are 8.07% of the initial principal balance of all notes issued by the trustee, will be held by the settlor and will satisfy the risk retention requirements of the PBOC and the CBRC for credit asset securitisation. The settlor intends to hold the subordinated notes until maturity and will not transfer the subordinated notes at any time.

Compare/contrast: Fuyuan 2017-1, Driver China Six