Consumer Loan Acquisition Diligence
Since no two consumer loans are alike, challenges may arise at point of acquisition such as inconsistent regulatory requirements, disparate income & debt calculations, and dissimilar documentation. Opus CMC helps investors navigate such challenges through the delivery of accurate and actionable loan review analysis. The analysis ensures the acquisition of quality consumer loans, fills gaps in product knowledge, and improves delivery timelines to ensure successful execution.
Consumer Lenders and Consumer Investors
CONSUMER DUE DILIGENCE SCOPE HIGHLIGHTS
- Documentation – Confirm each loan file contains material documentation required per guidelines and regulatory standards
- Income – Ensure each loan approval meets income documentation and calculation standards required by lender guidelines and investor overlays
- Debt Ratio – Assess borrower liabilities and recalculate the Debt-to-Income ratio to confirm adherence to guideline standards
- Credit History – Examine borrower credit histories to confirm conformity to guideline requirements
- Regulatory Compliance – Ensure proper calculation of financing terms including annual percentage rate (APR) and finance charges
- Legal Documents – Confirm loan terms meet approved terms per underwriting guidelines, loan approvals and investor overlays
- Value Review – Ensure secondary valuation products support the original appraised value, comparables support value and contain reasonable adjustments and appraiser was appropriately licensed.
- Increased loan volume without additional staffing costs
- Improved scalability for multifold growth in acquisition volumes and corresponding clients
- Improved seller client satisfaction by expediting timelines
- Significantly reduced loan delivery “buy-back” risk after acquisition.
- Higher confidence in credit quality
- Increased deal pull through
- Reduced buy-back risk