Volkswagen Auto Loan Trust Navigates Trustee Litigation

TL;DR

**The Volkswagen Auto Loan Trust 2025-2 is a stable securitization, but keep an eye on the significant, multi-million dollar RMBS and student loan litigation against its trustees, Deutsche Bank and U.S. Bank, as it could signal broader systemic risks.**

AI Summary

The Volkswagen Auto Loan Enhanced Trust 2025-2 filed its 10-K on March 26, 2026, for the fiscal year ended December 31, 2025. This filing primarily details compliance with servicing criteria and ongoing legal proceedings affecting the Owner Trustee, Deutsche Bank Trust Company Delaware, and the Indenture Trustee, U.S. Bank Trust Company, National Association. Notably, Deutsche Bank Trust Company Americas (DBTCA) is involved in two active RMBS-related lawsuits, one brought by Commerzbank AG and another by IKB International, S.A. and IKB Deutsche Industriebank A.G., with alleged damages of 'hundreds of millions of dollars' and over $268 million, respectively. U.S. Bank N.A. is also defending against multiple RMBS trust lawsuits and the National Collegiate Student Loan Master Trust I action, which alleges harm from purported misconduct concerning student loan servicing. Despite these legal challenges, both trustees assert that these proceedings will not materially affect their ability to perform their duties for the Volkswagen Auto Loan Enhanced Trust 2025-2. The Servicer, VW Credit, Inc., and the Indenture Trustee both reported material compliance with applicable servicing criteria for the period.

Why It Matters

This 10-K reveals significant ongoing litigation against the trust's key fiduciaries, Deutsche Bank Trust Company Delaware and U.S. Bank Trust Company, National Association, stemming from their roles in residential mortgage-backed securities (RMBS) and student loan trusts. While the trustees assert these issues won't impact the Volkswagen Auto Loan Enhanced Trust 2025-2, the sheer volume and scale of the lawsuits, including claims for 'hundreds of millions of dollars' and over $268 million, could strain resources or reputation, potentially affecting investor confidence in the broader asset-backed securities market. For investors in this specific trust, the continued compliance of the Servicer, VW Credit, Inc., with servicing criteria offers some reassurance, but the competitive landscape for auto loan securitization could be indirectly influenced by any perceived instability among major trust service providers.

Risk Assessment

Risk Level: medium — The risk level is medium due to the extensive and high-value litigation against the Owner Trustee, Deutsche Bank Trust Company Delaware, and the Indenture Trustee, U.S. Bank Trust Company, National Association. Deutsche Bank Trust Company Americas faces claims for 'hundreds of millions of dollars' from Commerzbank AG and over $268 million from IKB International, S.A. and IKB Deutsche Industriebank A.G. in RMBS-related cases, while U.S. Bank N.A. is involved in the NCMSLT Action concerning student loans. Although the trustees state these won't materially affect their duties to this specific trust, the sheer scale of these legal battles introduces reputational and operational risks.

Analyst Insight

Investors should monitor the progress of the RMBS and student loan litigation against Deutsche Bank Trust Company Delaware and U.S. Bank Trust Company, National Association, as adverse outcomes could indirectly impact the broader securitization market. While the Volkswagen Auto Loan Enhanced Trust 2025-2 itself shows compliance, the financial health and operational stability of its trustees are critical for long-term confidence.

Financial Highlights

debt To Equity

Not Disclosed

revenue

Not Disclosed

operating Margin

Not Disclosed

total Assets

Not Disclosed

total Debt

Not Disclosed

net Income

Not Disclosed

eps

Not Disclosed

gross Margin

Not Disclosed

cash Position

Not Disclosed

revenue Growth

Not Disclosed

Key Numbers

• $268 million — Alleged damages in IKB vs. DBNTC and DBTCA (Represents the significant financial exposure in one of the RMBS lawsuits against the Owner Trustee's affiliate.)
• 2025-2 — Trust Series Designation (Identifies the specific securitization trust.)
• 2026-03-26 — Filing Date (Indicates the date the 10-K was filed with the SEC.)
• 2025-12-31 — Fiscal Year End (The period covered by the annual report.)
• 0002095374 — Issuing Entity CIK (Unique identifier for Volkswagen Auto Loan Enhanced Trust 2025-2.)

Key Players & Entities

• Volkswagen Auto Loan Enhanced Trust 2025-2 (company) — Issuing Entity
• VW Credit, Inc. (company) — Sponsor, Originator, Servicer, and Administrator
• Volkswagen Auto Lease/Loan Underwritten Funding, LLC (company) — Depositor
• U.S. Bank Trust Company, National Association (company) — Indenture Trustee
• Deutsche Bank Trust Company Delaware (company) — Owner Trustee
• Deutsche Bank Trust Company Americas (company) — Defendant in RMBS litigation
• Commerzbank AG (company) — Plaintiff in RMBS litigation
• IKB International, S.A. in Liquidation (company) — Plaintiff in RMBS litigation
• IKB Deutsche Industriebank A.G. (company) — Plaintiff in RMBS litigation
• Garett Miles (person) — Head of Securitization and Assistant Treasurer for VW Credit, Inc.

FAQ

Risk Factors

• RMBS-Related Lawsuits Against Owner Trustee Affiliate [high — legal]: Deutsche Bank Trust Company Americas (DBTCA), an affiliate of the Owner Trustee, is involved in two significant RMBS-related lawsuits. One lawsuit by Commerzbank AG alleges 'hundreds of millions of dollars' in damages, while another by IKB International, S.A. and IKB Deutsche Industriebank A.G. seeks over $268 million. These proceedings could potentially impact the financial stability of entities involved in the trust's administration.
• RMBS Lawsuits Against Indenture Trustee [medium — legal]: U.S. Bank N.A., the Indenture Trustee, is defending against multiple RMBS trust lawsuits. Additionally, it faces a specific action concerning the National Collegiate Student Loan Master Trust I, alleging harm from purported misconduct in student loan servicing. While the trustee asserts no material impact on its duties, the volume and nature of these lawsuits represent a notable legal risk.
• Servicing Compliance [low — operational]: The Servicer, VW Credit, Inc., and the Indenture Trustee reported material compliance with applicable servicing criteria for the fiscal year ended December 31, 2025. This indicates adherence to operational standards, but ongoing monitoring is crucial given the broader legal landscape.

Industry Context

The auto loan securitization market operates within the broader financial services industry, influenced by interest rate environments, consumer credit quality, and regulatory oversight. Competition among auto finance companies like VW Credit, Inc. is intense, driving the need for efficient servicing and robust risk management.

Regulatory Implications

The involvement of trustees in significant litigation, particularly concerning RMBS, could lead to increased regulatory scrutiny on trust administration and compliance. While current trustees assert no material impact, future regulatory changes or adverse legal outcomes could affect the operational landscape for such trusts.

What Investors Should Do

1. Monitor legal proceedings involving Deutsche Bank Trust Company Americas and U.S. Bank N.A.
2. Review the specific servicing criteria compliance reports.

Key Dates

• 2026-03-26: 10-K Filing Date — Indicates the official filing of the annual report with the SEC, providing a comprehensive overview of the trust's performance and legal standing for the fiscal year.
• 2025-12-31: Fiscal Year End — Marks the end of the reporting period for which the financial and operational data in the 10-K are presented.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC) that gives a comprehensive summary of a company's financial performance. (This is the primary document detailing the Volkswagen Auto Loan Enhanced Trust 2025-2's compliance and legal status for the fiscal year.)

Owner Trustee

A trustee appointed to hold legal title to the assets in a trust for the benefit of the certificate holders. (Deutsche Bank Trust Company Delaware serves as the Owner Trustee, and its affiliate's involvement in lawsuits is a key risk factor.)

Indenture Trustee

A trustee appointed to represent the interests of bondholders or noteholders in a securitization transaction, ensuring the issuer complies with the terms of the indenture agreement. (U.S. Bank Trust Company, National Association is the Indenture Trustee, and its own legal proceedings are disclosed.)

RMBS

Residential Mortgage-Backed Securities. These are securities backed by pools of mortgage loans. (The lawsuits against Deutsche Bank Trust Company Americas and U.S. Bank N.A. are related to RMBS, highlighting potential systemic risks in the securitization market.)

Servicing Criteria

A set of standards and procedures that a servicer must follow when managing underlying assets in a securitization trust, such as collecting payments and managing defaults. (Compliance with these criteria by VW Credit, Inc. and the Indenture Trustee is a key aspect of the 10-K filing, indicating operational integrity.)

Year-Over-Year Comparison

This 10-K filing for the fiscal year ended December 31, 2025, primarily focuses on compliance with servicing criteria and details ongoing legal proceedings affecting the Owner Trustee and Indenture Trustee. Specific financial performance metrics compared to the prior year, such as revenue growth or margin changes, are not detailed in the provided excerpt, suggesting a focus on operational and legal disclosures rather than a comparative financial analysis.

Key Financial Figures

• $268 million — BNTC and DBTCA are liable for over U.S. $268 million in damages. On October 5, 2016, DBNTC a

Filing Documents

• tm261240d7_10k.htm (10-K) — 62KB
• tm261240d7_ex31-1.htm (EX-31.1) — 6KB
• tm261240d7_ex33-1.htm (EX-33.1) — 52KB
• tm261240d7_ex33-2.htm (EX-33.2) — 56KB
• tm261240d7_ex34-1.htm (EX-34.1) — 9KB
• tm261240d7_ex34-2.htm (EX-34.2) — 6KB
• tm261240d7_ex35-1.htm (EX-35.1) — 5KB
• image_001.jpg (GRAPHIC) — 10KB
• tm261240d7_ex34-1img001.jpg (GRAPHIC) — 4KB
• tm261240d7_ex34-2img001.jpg (GRAPHIC) — 3KB
• tm261240d7_ex34-2img002.jpg (GRAPHIC) — 3KB
• 0001104659-26-035013.txt ( ) — 225KB

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. Not Applicable.

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. Not Applicable. PART II THE FOLLOWING ITEMS HAVE BEEN OMITTED IN ACCORDANCE WITH GENERAL INSTRUCTION J(1) TO FORM 10-K: (A) Item 5 Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. (B) Item 6 [Reserved] (C) Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations. (D) Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. (E) Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. (F) Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. (G) Item 9A

Controls and Procedures

Controls and Procedures.

Other Information

Item 9B. Other Information. None.

Disclosure Regarding Foreign Jurisdictions that Prevent

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not Applicable. PART III THE FOLLOWING ITEMS HAVE BEEN OMITTED IN ACCORDANCE WITH GENERAL INSTRUCTION J(1) TO FORM 10-K: (A) Item 10 Directors, Executive Officers and Corporate Governance. (B) Item 11

Executive Compensation

Executive Compensation. (C) Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. (D) Item 13 Certain Relationships and Related Transactions, and Director Independence. (E) Item 14 Principal Accountant Fees and Services. PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules. (a) (1) Not applicable. (2) Not applicable. (3) The exhibits filed in response to Item 601 of Regulation S-K are listed in the Exhibit Index. (b) The exhibits filed in response to Item 601 of Regulation S-K are listed in the Exhibit Index. (c) None.

Form 10-K Summary

Item 16. Form 10-K Summary. Not Applicable. SUBSTITUTE INFORMATION PROVIDED IN ACCORDANCE WITH GENERAL INSTRUCTION J(2) TO FORM 10-K:

(b) of Regulation AB. Significant Obligors of Pool

Item 1112(b) of Regulation AB. Significant Obligors of Pool Assets (Financial Information). Not Applicable.

(b)(2) of Regulation AB. Credit Enhancement and Other

Item 1114(b)(2) of Regulation AB. Credit Enhancement and Other Support, Except for Certain Derivatives Instruments (Information Regarding Significant Enhancement Providers). Not Applicable.

(b) of Regulation AB. Certain Derivatives Instruments

Item 1115(b) of Regulation AB. Certain Derivatives Instruments (Financial Information). Not Applicable.

of Regulation AB. Legal Proceedings

Item 1117 of Regulation AB. Legal Proceedings. Except as described below, no legal proceedings are pending against any of VW Credit, Inc. (in its capacity as the sponsor (the “Sponsor”), in its capacity as an originator contemplated by Item 1110(b) of Regulation AB (the “Originator”), in its capacity as servicer (the “Servicer”) and in its capacity as administrator of Volkswagen Auto Loan Enhanced Trust 2025-2 (the “Issuing Entity”)), Volkswagen Auto Lease/Loan Underwritten Funding, LLC (the “Depositor”), U.S. Bank Trust Company, National Association (the “Indenture Trustee”), Deutsche Bank Trust Company Delaware (the “Owner Trustee”), or the Issuing Entity or of which any property of the foregoing is the subject that are or would be material to holders of the asset-backed notes (the “Notes”) or the asset-backed certificate (the “Certificate”). No such proceedings are known to be contemplated by governmental authorities. VW Credit and its affiliates are parties to, or are periodically otherwise involved in, reviews, investigations, and proceedings (both formal and informal), and information gathering requests by various federal, state and local government authorities. Deutsche Bank Trust Company Delaware, as the Owner Trustee, has provided the following information for inclusion in this report on Form 10-K: In 2014 and 2015, several investors sued several trustees of residential mortgage-backed securities (“RMBS”) trusts, including Deutsche Bank Trust Company Americas (“DBTCA”), concerning the trustees’ administration of RMBS trusts. These cases generally alleged that the RMBS trustees failed to perform purported duties, as trustees for private-label RMBS trusts, to enforce breaches of representations and warranties as to mortgage loans held by the trusts and to enforce breaches by servicers of thei

of Regulation AB. Affiliations and Certain Relationships

Item 1119 of Regulation AB. Affiliations and Certain Relationships and Related Transactions. Information required by Item 1119 of Regulation AB has been omitted from this report on Form 10-K in reliance on the Instruction to Item 1119.

of Regulation AB. Compliance with Applicable Servicing

Item 1122 of Regulation AB. Compliance with Applicable Servicing Criteria. The Servicer and the Indenture Trustee (collectively, the “Servicing Parties”) have each been identified by the Depositor as parties participating in the servicing function with respect to the asset pool held by the Issuing Entity. Each of the Servicing Parties has completed a report on an assessment of compliance with the servicing criteria set forth in paragraph (d) of Item 1122 of Regulation AB applicable to it (each, a “Servicing Assessment Report”), which Servicing Assessment Reports are attached as exhibits to this Form 10-K. In addition, each of the Servicer and the Indenture Trustee has provided an attestation report (each, an “Attestation Report”) by a registered public accounting firm, which reports are also attached as exhibits to this Form 10-K. Neither the Indenture Trustee’s Servicing Assessment Report nor the Indenture Trustee’s Attestation Report has identified any material instance of noncompliance with the servicing criteria applicable to the Indenture Trustee. The Servicer complied in all material respects with the servicing criteria applicable to it.

of Regulation AB. Servicer Compliance Statement

Item 1123 of Regulation AB. Servicer Compliance Statement. The Servicer has completed a statement of compliance with its activities during the reporting period and of its performance under the applicable servicing agreement (a “Compliance Statement”), signed by an authorized officer of the Servicer. The Compliance Statement is attached as Exhibit 35.1 to this Form 10-K. EXHIBIT INDEX Exhibit 31.1 Certification of Senior Officer in Charge of the Servicing Function of the Servicer Pursuant to Rule 15d-14(d). Exhibit 33.1 Report on Assessment of Compliance with Applicable Servicing Criteria of VW Credit, Inc. Exhibit 33.2 Report on Assessment of Compliance with the Servicing Criteria of U.S. Bank Trust Company, National Association Exhibit 34.1 Attestation Report on Assessment of Compliance with the Servicing Criteria of Baker Tilly US, LLP, on behalf of VW Credit, Inc. Exhibit 34.2 Attestation Report on Assessment of Compliance with the Servicing Criteria of Ernst & Young LLP, on behalf of U.S. Bank Trust Company, National Association Exhibit 35.1 Annual Servicer Compliance Statement of the Servicer for the year ended December 31, 2025.

SIGNATURES

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Depositor has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. March 26, 2026 VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2025-2 By: VW Credit, Inc., as Servicer By: /s/ Garett Miles Garett Miles Head of Securitization and Assistant Treasurer (senior officer in charge of the servicing function)

View Full Filing

View this 10-K filing on SEC EDGAR