UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM ABS-15G

 

 

ASSET-BACKED SECURITIZER

REPORT PURSUANT TO SECTION 15G OF

THE SECURITIES EXCHANGE ACT OF 1934

Check the appropriate box to indicate the filing obligation to which this form is intended to satisfy:

☐	Rule 15Ga-1 under the Exchange Act (17 CFR 240.15Ga-1) for the reporting period

_________________ to ________________

Date of Report (Date of earliest event reported) _____________________

Commission File Number of securitizer: ____________________

Central Index Key Number of securitizer: ___________________

_________________________________________________________

Name and telephone number, including area code, of the person to contact in connection with this filing.

 

 

Indicate by check mark whether the securitizer has no activity to report for the initial period pursuant to Rule 15Ga-1(c)(1)  ☐

Indicate by check mark whether the securitizer has no activity to report for the quarterly period pursuant to Rule 15Ga-1(c)(2)(i)  ☐

Indicate by check mark whether the securitizer has no activity to report for the annual period pursuant to Rule 15Ga-1(c)(2)(ii)  ☐

 

☒	Rule 15Ga-2 under the Exchange Act (17 CFR 240.15Ga-2)

Central Index Key Number of depositor:     0001570213

 

 

FCI Funding 2021-1, LLC

(Exact name of issuing entity as specified in its charter)

 

 

Central Index Key Number of issuing entity (if applicable):     N/A

Central Index Key Number of underwriter (if applicable):     N/A

John Finch, (904) 224-1201

Name and telephone number, including area code, of the person to contact in connection with this filing

 

 

 

Item 2.01 Findings and Conclusions of a Third Party Due Diligence Report Obtained by the Issuer

Attached as Exhibit 99.1 hereto is an agreed-upon procedures report, dated March 24, 2021, of KPMG LLP, obtained by the issuer, which report sets forth the findings and conclusions, as applicable, of KPMG LLP with respect to certain agreed upon procedures performed by KPMG LLP.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the reporting entity has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FCI Funding 2021-1, LLC

 

		By: FIG Capital Investments, LLC, its Member
		/s/ John Finch
		Name:    John Finch
		Title:    Chief Executive Officer

Date: March 29, 2021

EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Agreed-upon procedures report, dated March 24, 2021, of KPMG LLP.

Exhibit 99.1

 

		KPMG LLP Suite 700 20 Pacifica Irvine, CA 92618-3391

Independent Accountants’ Report on Applying Agreed-Upon Procedures

Finch Investment Group, LLC (the “Company”)

Capital One Securities, Inc.

Amherst Pierpont Securities LLC

(together, the “Specified Parties”)

Re: FCI Funding 2021-1, LLC – Data File Procedures

We have performed the procedures described below, which were agreed to by the Specified Parties, on the specified attributes identified by the Company in an electronic data file entitled “2021-1 Initial Pool Cut as 1.31.21 prepared on 2.24.21.xlsx” provided by the Company on February 24, 2021 (the “Data File”), containing certain information related to 67,765 Tax Liens as of January 31, 2021, which we were informed are intended to be included as collateral in the offering by FCI Funding 2021-1, LLC. The Company is responsible for the specified attributes identified by the Company in the Data File. The sufficiency of these procedures is solely the responsibility of the Specified Parties. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

Unless otherwise stated, the following definitions have been adopted in presenting our procedures and findings:

 

•

The term “compared” means compared to the information shown and found it to be in agreement, unless otherwise stated. Such compared information was deemed to be in agreement if differences were within the materiality threshold.

 

•

The term “recomputed” means recalculated and compared the result to the information shown and found it to be in agreement, unless otherwise stated. Such recomputed information was deemed to be in agreement if differences were within the materiality threshold.

 

•

The term “materiality threshold” means that dollar amounts and percentages are within $0.01 and 0.1%, respectively.

 

•

The term “Calculation Methodology” means the recomputation methodologies provided by the Company pertaining to a procedure, attribute, or value.

 

•

The term “Instructions” means the instructions provided by the Company pertaining to a procedure, attribute, methodology, or value, as described in Exhibit C.

 

•

The term “Sources” means some or all of the following documents for each of the Selected Tax Liens (defined below):

 

•

Screenshots furnished and represented by the Company to be from the Company’s internal servicing system used to service and maintain the Tax Liens (the “FIG System Screenshots”).

KPMG LLP, a Delaware limited liability partnership and a member firm of

the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.

 

•

Scanned copies of the Certificate of Details, Certificate of Purchase, Certificate of Sale, County Assessor Report, County Property Appraiser, Notice of Valuation, and Tax Certificate, which were furnished and represented by the Company to be copies of the original documents.

 

•

Screenshots furnished and represented by the Company to be from County Tax Certificate Auction Site, County Tax Certificate Auction Summary, County Tax Certificate Sale Site, County Tax Lien Auction Site, County Tax Lien Auction Summary, County Tax Lien Sale System, Initial Take Notice, National Tax Lien Association Property Description, and Tax Certificate Auction Site.

 

•

Electronic mail correspondence from the Company listing property types and use codes corresponding to the Property Type appearing in the Data File (the “Property Type Listing”).

 

•

“Penalty Rate Statutory Lists” containing penalty rates for the Illinois and New Jersey provided by the Company.

 

•

Scanned copies of the Amended Table of Equalized Valuations 2020 listing the equalized ratio for each county in New Jersey for the purpose of recomputing the Market Value, and the Opinion on the amendments to N.J.S.A. 54:5-61, listing the reimbursable fees for the State of New Jersey for the purpose of comparing the Reimbursable Fee (the “NJ Additional Support”), provided by the Company.

We were instructed by the Company to perform the following agreed-upon procedures on the Tax Liens in the Data File.

 

A.

We were instructed by the Company to randomly select a sample of 100 Tax Liens from the Data File (the “Selected Tax Liens”), listed in Exhibit A. For purposes of this procedure, the Company did not inform us as to the basis for how they determined the number of Tax Liens that we were instructed to randomly select from the Data File.

 

B.

For each Selected Tax Liens, we compared the attributes listed below to the corresponding information set forth in the Sources (subject to the Instructions). Where more than one document is indicated, we used the highest priority document that we could locate in the Sources. The document priority is the order provided by the Company, which is listed in the “Source Document(s)” column, with the highest priority document listed first.

 

 

2

 

 

3

 

C.

Using (i) certain information in the Data File and (ii) the Calculation Methodology, we recomputed the following attributes for the Selected Tax Liens.

 

 

D.

For each Selected Tax Liens, the Company instructed us to confirm that the Bankruptcy Field of the Data File is equal to “N.” We found that the Bankruptcy Field of the Data File was equal to “N” for all Selected Tax Liens.

The information regarding the Selected Tax Liens was found to be in agreement with the respective information contained on the Sources, except as listed in Exhibit B.

There were no conclusions that resulted from the procedures.

This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to, and did not, conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the specified attributes identified by the Company in the Data File. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to the Specified Parties.

The procedures performed were applied based on the Sources, materiality thresholds, Calculation Methodologies, Instructions and information included in the Data File, without verification or evaluation of such information, materiality thresholds, methodologies or instructions by us; therefore, we express no opinion or any other form of assurance regarding (i) the physical existence of the Tax Liens, (ii) the reasonableness of the Calculation Methodologies or Instructions, (iii) the reliability or accuracy of the Sources which were used in our procedures, or (iv) matters of legal interpretation.

 

4

 

The procedures performed were not intended to address, nor did they address: (i) the conformity of the origination of the Tax Liens to stated underwriting or credit extension guidelines, standards, criteria or other requirements, (ii) the value of collateral securing any such Tax Liens being securitized, (iii) the compliance of the originator of the Tax Liens with federal, state, and local laws and regulations, or (iv) any other factor or characteristic of the Tax Liens that would be material to the likelihood that the issuer of the asset-backed security will pay interest and principal in accordance with applicable terms and conditions. The procedures performed were not intended to satisfy any criteria for due diligence published by a nationally recognized statistical rating organization (“NRSRO”).

The terms of our engagement are such that we have no obligation to update this report because of events and transactions that may subsequently occur.

This report is intended solely for the information and use of the Specified Parties. It is not intended to be and should not be used by any other person or entity, including investors and NRSROs, who are not identified in the report as the Specified Parties but may have access to this report as required by law or regulation.

/s/ KPMG LLP

Irvine, California

March 24, 2021

 

5

Exhibit A – The Selected Tax Liens

 

Selected Tax Lien		Selected Tax Lien		Selected Tax Lien		Selected Tax Lien
Number		ID1		Number		ID 1
1		2021001		51		2021051
2		2021002		52		2021052
3		2021003		53		2021053
4		2021004		54		2021054
5		2021005		55		2021055
6		2021006		56		2021056
7		2021007		57		2021057
8		2021008		58		2021058
9		2021009		59		2021059
10		2021010		60		2021060
11		2021011		61		2021061
12		2021012		62		2021062
13		2021013		63		2021063
14		2021014		64		2021064
15		2021015		65		2021065
16		2021016		66		2021066
17		2021017		67		2021067
18		2021018		68		2021068
19		2021019		69		2021069
20		2021020		70		2021070
21		2021021		71		2021071
22		2021022		72		2021072
23		2021023		73		2021073
24		2021024		74		2021074
25		2021025		75		2021075
26		2021026		76		2021076
27		2021027		77		2021077
28		2021028		78		2021078
29		2021029		79		2021079
30		2021030		80		2021080
31		2021031		81		2021081
32		2021032		82		2021082
33		2021033		83		2021083
34		2021034		84		2021084
35		2021035		85		2021085
36		2021036		86		2021086
37		2021037		87		2021087
38		2021038		88		2021088
39		2021039		89		2021089
40		2021040		90		2021090
41		2021041		91		2021091
42		2021042		92		2021092
43		2021043		93		2021093
44		2021044		94		2021094
45		2021045		95		2021095
46		2021046		96		2021096
47		2021047		97		2021097
48		2021048		98		2021098
49		2021049		99		2021099
50		2021050		100		2021100

 

1	The Company has assigned a unique ID number to each Tax Lien in the Data File. The Selected Tax Lien IDs referred to in this Exhibit are not the Company’s Tax Lien ID numbers.

 

A-1

				Exhibit B – Exception List

 

Selected Tax		Selected Tax
Lien Number		Lien ID		Attribute		Per Data File		Per Source
92		2021092		Current Penalty Rate		0.00%		12.00%

 

B-1

Exhibit C - Instructions

 

Attribute		Instructions
Address		When the Address stated in the Data File was “Unknown” compare the Parcel Number stated in the Data File to the corresponding information contained in FIG System Screenshot or Certificate Details.
Current Penalty Rate		The Company informed us that the Selected Tax Liens in states other than Illinois and New Jersey, have no penalty rate. Therefore, we did not perform the procedure on the Selected Tax Liens in states other than Illinois and New Jersey.

 

 

C-1