UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-K
(X) ANNUAL REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For The Fiscal Year Ended December 31, 2002
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For The Transition Period From ________________ to ________________
Commission File Number 333-65554-03
CIT Home Equity Loan Trust 2002-1
DELAWARE No. 13-3460894
(State or other jurisdiction (I.R.S. EMPLOYER IDENTIFICATION)
of incorporation)
c/o The CIT Group/Consumer Finance, Inc.
1 CIT Drive, Livingston, New Jersey 07039
Telephone Number (973) 740-5000
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Securities registered pursuant to Section 12(b) of the Act:
Name of exchange on
Title of each class which registered
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Home Equity Loan Asset Backed Certificates None
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES X NO
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. ( x )
State the aggregate market value of the voting stock held by non-affiliates of
registrant. The aggregate market value shall be computed by reference to the
price at which the stock was sold, or the average bid and asked prices of such
stock, as of specified date within 60 days prior to the date of filing. Not
Applicable
DOCUMENTS INCORPORATED BY REFERENCE
Not Applicable
TABLE OF CONTENTS
PART I
Item Description Page
- ---- ----------- ----
2. Properties 1
3. Legal Proceedings 1
4. Submission of Matters to a Vote of Security-Holders 1
PART II
5. Market for Registrant's Common Equity and Related Stockholder
Matters 1
9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure 1
PART III
12. Security Ownership of Certain Beneficial Owners and Management 2
13. Certain Relationships and Related Transactions 2
PART IV
14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K 2
PART I
ITEM 2. PROPERTIES
The CIT Home Equity Loan Trust 2002-1 (the "Trust") owns first and
second lien mortgage loans secured by primarily one-to-four-family
residential properties.
ITEM 3. LEGAL PROCEEDINGS
The registrant knows of no material pending proceedings with respect to
the Trust.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matter has been submitted to a vote of the holders of the Trust's
Home Equity Loan Asset Backed Certificates through the solicitation of
proxies or otherwise.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
There is no established public trading market for the Home Equity Loan
Asset Based Certificates of the Trust. As of December 31, 2002, the
approximate number of holders of record were as follows: 40
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.
None.
1
PART III
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
Not Applicable.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
None
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.
a) Documents filed as a part of the report:
Exhibits:
99.1 Report of Independent Accountants
99.2 Management's Assertion Concerning Compliance with USAP Minimum
Servicing Standards.
99.3 Schedule of Year-to-Date Distributions of Principal and
Interest to Certificate Holders and Pool Balance and
Delinquencies as of December 31, 2002.
99.4 Annual Officer's Certificate
b) Current Reports on Form 8-K:
Items
Date Reported Financial Statements
---- -------- --------------------
2/11/03 5, 7 March report to certificate holders
2/11/03 5, 7 April report to certificate holders
2/11/03 5, 7 May report to certificate holders
2/11/03 5, 7 June report to certificate holders
2/11/03 5, 7 July report to certificate holders
2/11/03 5, 7 August report to certificate holders
2/11/03 5, 7 September report to certificate holders
2/11/03 5, 7 October report to certificate holders
2/11/03 5, 7 November report to certificate holders
2/11/03 5, 7 December report to certificate holders
2
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
CIT Home Equity Loan Trust 2002-1
By: JPMorgan Chase Bank, as Trustee
By: __________________________
Name:
Title:
Dated: March 31, 2003
I, Kenneth P. Reynolds, a Senior Vice President and Chief Financial
Officer in charge of the servicing function of The CIT Group/Consumer Finance,
Inc., as servicer for CIT Home Equity Loan Trust 2002-1, certify that:
1. I have reviewed this annual report on Form 10-K, and all reports on Form
8-K containing distribution or servicing reports filed in respect of
periods included in the year covered by this annual report, of the Trust;
2. Based on my knowledge, the information in these reports, taken as a whole,
does not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading as of
the last day of the period covered by this annual report;
3. Based on my knowledge, the distribution or servicing information required
to be provided to the trustee by the servicer under the pooling and
servicing agreement for inclusion in these reports is included in these
reports;
4. I am responsible for reviewing the activities performed by the servicer
under the pooling and servicing agreement and based upon my knowledge and
the annual compliance review required under the pooling and servicing
agreement and except as disclosed in the reports, the servicer has
fulfilled its obligations under the pooling and servicing agreement; and
5. This annual report discloses all significant deficiencies relating to the
servicer's compliance with the minimum servicing standards based upon the
report provided by an independent public accountant, after conducting a
review in compliance with the Uniform Single Attestation Program for
Mortgage Bankers or similar procedure, as set forth in the pooling and
servicing agreement, that is included in this annual report.
Date: March 31, 2003
/s/ Kenneth P. Reynolds
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Name: Kenneth P. Reynolds
Title: Senior Vice President and Chief Financial Officer
The CIT Group/Consumer Finance, Inc.
3
EXHIBIT INDEX
Exhibit No.
99.1 Report of Independent Accountants.
99.2 Management's Assertion Concerning Compliance with USAP Minimum
Servicing Standards.
99.3 Schedule of Year-to-Date Distributions of Principal and Interest to
Certificate Holders and Pool Balance and Delinquencies as of
December 31, 2002.
99.4 Annual Officer's Certificate
4
PricewaterhouseCoopers [LOGO]
- --------------------------------------------------------------------------------
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York NY 10036
Telephone (646) 471 4000
Facsimile (646) 471 4100
Report of Independent Accountants
The CIT Group/Consumer Finance, Inc.
We have examined management's assertion about The CIT Group/Consumer Finance,
Inc.'s (the "Company's"), a wholly owned subsidiary of CIT Group Inc.,
compliance with the minimum servicing standards identified in the Mortgage
Bankers Association of America's Uniform Single Attestation Program for Mortgage
Bankers as of and for the year ended December 31, 2002, as included in the
accompanying management assertion (see Exhibit I) for CIT Home Equity Loan Trust
2002-1 and CIT Home Equity Loan Trust 2002-2. Management is responsible for the
Company's compliance with those minimum servicing standards. Our responsibility
is to express an opinion on management's assertion about the Company's
compliance based on our examination.
Our examination was made in accordance with attestation standards established by
the American Institute of Certified Public Accountants and, accordingly,
included examining, on a test basis, evidence about the Company's compliance
with the minimum servicing standards and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide a
legal determination on the Company's compliance with the minimum servicing
standards.
In our opinion, management's assertion that the Company complied with the
aforementioned minimum servicing standards as of and for the year ended December
31, 2002, except as noted in Exhibit I, is fairly stated, in all material
respects.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
New York, NY
March 26, 2003
Exhibit 99.2
Management's Assertion Concerning Compliance
with USAP Minimum Servicing Standards
March 26, 2003
As of and for the year ended December 31, 2002, The CIT Group/Consumer Finance,
Inc. (the "Company"), a wholly owned subsidiary of CIT Group Inc., has complied
in all material respects with the minimum servicing standards set forth in the
Mortgage Bankers Association of America's Uniform Single Attestation Program for
Mortgage Bankers ("USAP") as servicer for trusts identified at Attachment 1.
During the year ended December 31, 2002, certain instances of noncompliance with
the standards occurred as noted below:
Mortgagor Loan Accounting
Standard: Adjustments on ARM loans shall be computed based on the related
mortgage note and any ARM rider.
Certain accounts contained incorrect reset dates. The Company's existing
internal control structure initially identified the affected accounts and
management has supplemented its procedures to review adjustments processed.
Management does not believe these items have a material impact on the
loan records.
As of and for this same period, CIT Group Inc. had in effect a financial
institution bond, computer crime policy, and errors and omissions policy in the
following amounts:
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Insurance Type Coverage Effective period
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Financial institution bond $60mm 09/30/98 to 09/15/02
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$60mm 09/30/02 to 09/30/03
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Computer crime policy $60mm 09/30/98 to 09/15/02
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$60mm 09/30/02 to 09/30/03
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Errors and omissions $25mm 12/30/01 to 12/30/02
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$10mm 12/30/02 to 12/30/03
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/s/ Thomas B. Hallman
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Thomas B. Hallman
President & Chief Executive Officer
The CIT Group/Consumer Finance, Inc.
/s/ Kenneth P. Reynolds
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Kenneth P. Reynolds
Senior Vice President and Chief Financial Officer
The CIT Group/Consumer Finance, Inc.
/s/ Frank Garcia
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Frank Garcia
Senior Vice President
The CIT Group/Consumer Finance, Inc.