Consumer Loan Acquisition Diligence
INDUSTRY LANDSCAPE
CLIENT PROFILE
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.
Results
- 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.
RESULTS SUMMARY
- Higher confidence in credit quality
- Increased deal pull through
- Reduced buy-back risk