World Omni Auto Receivables Trust 2025-D Annual Report: What You Need to Know

Think of this as our chat about World Omni Auto Receivables Trust 2025-D. We'll break down their annual report into plain English. You'll understand what they do and how they're set up. This helps you decide if it fits your investments.

What is World Omni Auto Receivables Trust 2025-D? (And why "past year" is a bit tricky here!)

Let's start with the basics. This is an Annual Report (Form 10-K) for the fiscal year ending December 31, 2025. You might notice "2025" is in the future! This report is for a brand new trust. It hasn't operated for a full year yet. So, we're not looking at past performance. Instead, we're learning how this trust is set up and who the key players are.

Think of World Omni Auto Receivables Trust 2025-D (we'll call it "the Trust") as a special investment company. It's often called a "Special Purpose Vehicle." Its main job is to hold many auto loans. These are the loans people take out to buy cars. The Trust uses the car buyers' regular loan payments to pay back its investors. These investors buy "Notes" or "Certificates," which are like bonds from the Trust. This system bundles individual auto loans into investments you can buy. It lets investors lend money to car buyers. This structured system pools many loans together. This helps spread out the risk.

The Trust's Foundational Agreements

This is a brand new trust. The filing highlights key legal agreements. They were put in place on October 15, 2025. These agreements are the blueprints for how the Trust will operate. They set the rules for everyone involved. They also define investors' rights and duties.

• Sale and Servicing Agreement: This agreement explains how World Omni Auto Receivables LLC (the Depositor) sells auto loans to the Trust. It also details how World Omni Financial Corp. (the Servicer) collects payments from car buyers. The Servicer also handles late payments and manages the loans.
• Indenture: This is the main contract between the Trust and its Trustee (The Bank of New York Mellon Trust Company, N.A.). It outlines the terms of the "Notes" (your investments). This includes interest rates and payment dates. It also details the Trustee's job to protect investors. This is especially important if the Trust cannot pay.
• Trust Agreement: This document legally creates the Trust. It defines its purpose, its limited activities, and how it will be managed.
• Receivables Purchase Agreement: This agreement shows how the Depositor buys auto loans from World Omni Financial Corp. It establishes who owns the loans.
• Administration Agreement: This covers the Trust's administrative tasks. These often include preparing reports and following legal rules.

These agreements are crucial. They set the structure and rules for the Trust's operations from day one. They provide the legal basis for these auto loan investments.

Who are the main players?

• World Omni Financial Corp. (the "Sponsor"): This company first made the auto loans to car buyers. They are also the "primary servicer." This means they collect payments from car buyers. They handle customer service, manage unpaid loans, and oversee the loan portfolio.
• World Omni Auto Receivables LLC (the "Depositor"): This company is fully owned by the Sponsor. It buys the auto loans from the Sponsor. Then it sells them to the Trust. The Depositor also owns 100% of the Trust itself. This is the "residual interest," or the ownership stake. So, these companies are closely related. They work together to create, pool, and package the loans for investors.
• The Bank of New York Mellon Trust Company, N.A. (the "Indenture Trustee"): This is an independent third party. It acts for the investors. Its job is to ensure everything runs smoothly. It makes sure the Trust and Servicer follow all rules. This is especially true for collecting and sending payments to investors.

What's in the Trust's "portfolio"?

The Trust holds many auto loans. A good sign: no single borrower owes 10% or more of the total loans. This is good for investors. It means the risk of someone not paying is spread out. If a few big borrowers don't pay, it won't greatly harm the loan pool. This protects the Trust's ability to pay investors. The loans are generally fixed-rate loans. This means the interest rate for the car buyer stays the same. This makes it easier to predict future payments for investors. Also, they don't use escrow accounts for taxes or insurance. This simplifies managing the loans.

What about extra safety nets?

The filing states there's no external credit enhancement or other support. This means no outside insurance policy backs the investment. There's no bank letter of credit or corporate guarantee. The Trust's "Notes" and "Certificates" rely only on the auto loans' performance. They also rely on any internal protections, like having more loans than needed. If many car buyers stop paying, it could directly affect the Trust's ability to pay investors. So, the quality of the loan pool is very important.

Also, this Trust doesn't have a backup servicer ready. If World Omni Financial Corp. (the main servicer) faces big problems, no company is pre-arranged to take over. This is common for some auto loan trusts. However, it creates a potential operational risk. A service disruption could delay or reduce payments to investors. This would last until a new servicer is fully ready.

However, an Asset Representations Review Agreement is in place. This special feature allows an independent review of the auto loans. This happens if certain performance triggers are met. These triggers are specific numbers. For example, if too many loans are 60+ days late. Or if the total losses exceed a set level (e.g., 8% or 10% of the initial loan value). If a trigger is met, an independent "Asset Representations Reviewer" checks a sample of loans. They verify if the original claims about the loans were accurate. This adds an extra layer of checking and protection for investors. It ensures loan quality can be verified if problems arise.

Are there any big legal issues?

The report notes that The Bank of New York Mellon (the Trustee) faces lawsuits. These relate to other types of investments. Specifically, they involve home loan-backed securities. These lawsuits concern its role as trustee in other bundled loan deals. They do not directly involve World Omni Auto Receivables Trust 2025-D. The filing clearly states: no other important legal cases are pending or expected. This applies to this Trust, its Sponsor, or its Depositor. So, the Trustee has other legal battles. But they don't seem to affect this auto loan trust, its assets, or its main operations.

How do we know they're playing by the rules? (And who's checking?)

This is crucial for any investment! We have good news about following the rules. Strong compliance reporting builds investor trust in these auto loan investments.

First, World Omni Financial Corp. (WOFC), the main company and loan servicer, checked its own compliance. It assessed if it followed all important rules for managing these trusts. This check covers all auto loan trusts they've sponsored since 2006. It includes this new 2025-D trust, for the period ending December 31, 2025. The result? WOFC states they followed these rules in all important ways. Matthew Hoole, WOFC's Chief Financial Officer, personally certified this on March 23, 2026. This followed a thorough review of their activities. They also confirmed no major issues with their outside vendors. Their systems for monitoring these vendors are strong. This means the processes for handling loans, collecting payments, and managing the Trust work as they should.

To add more confidence, PricewaterhouseCoopers LLP (PwC), an independent accounting firm, reviewed WOFC's assessment. They issued their own report confirming this compliance. This report, for the year ended December 31, 2025, covers all auto and light truck loan deals sponsored by WOFC since January 1, 2006. PwC checked if WOFC's claim of compliance was "fairly stated in all important ways." They noted some criteria didn't apply to WOFC, which is normal. WOFC also uses other companies for some tasks. Instead of separate checks for these vendors, WOFC takes responsibility for their compliance. This is allowed by SEC rules. PwC's independent review concluded that WOFC's compliance claim is "fairly stated in all important ways." This is like a clean bill of health. It means they found no major issues with how WOFC manages these loans and trusts.

But there's more! The Bank of New York Mellon Trust Company, N.A. (the Trustee) also has its own "Management’s Assertion Report." Here, they confirm their compliance with servicing rules. This means the independent party overseeing the Trust also checks its own adherence. For the twelve months ended December 31, 2025, BNY Mellon's management checked their compliance. They used the "Applicable Servicing Criteria." These are specific rules for handling bundled loan investments, set by the SEC. They concluded they followed these criteria in all important ways.

The Trustee's role is specific. For example, they don't file paperwork to secure loan ownership unless instructed. Also, some rules about adding or removing loans didn't apply. No such events happened during the period. This shows they understand their defined duties. Just like with WOFC, an independent accounting firm, KPMG LLP, reviewed the Trustee's compliance. They issued their own report, giving it another stamp of approval.

This double check, with self-assessment and independent audits, is a strong positive sign. It shows the systems for handling these auto loans and paying investors are well-managed. Both the companies and outside experts regularly check them. This transparency and oversight are vital for investors to trust these bundled loan products.

Why are so many sections "Not Applicable"?

You might see many sections in the 10-K marked "Not Applicable." These include "Business" and "Financial Statements." This is common for these types of trusts, which hold bundled loans. The Trust's only job is to hold auto loans. It then sends payments to investors. It doesn't operate like a normal company. It doesn't make products, offer services, or have employees. It has no income or costs beyond those tied to bundling the loans. So, details about the auto loans, investment risks, and payment flow are in other documents. Look for the original offering prospectus (like a detailed sales brochure) or the pooling and servicing agreement. They won't be in this annual report.

What does this mean for investors?

This is a new trust for the fiscal year ending in 2025. So, we don't have past performance data yet. This first filing helps us understand its structure. It shows the key parties involved. It also gives initial assurances about its setup and management. The detailed legal agreements and many compliance checks build a solid foundation. Both the servicer and trustee have independent auditor reports. The CFO also personally certified compliance. For a retail investor, this 10-K confirms a strong system for operations and rule-following. To understand its investment potential, we need more details. Look at the auto loans themselves. Check their credit quality, average FICO scores, interest rates, and loan-to-value ratios. These details are in the original offering documents (prospectus). Then, we can track its performance once it starts making payments.