Auto Loan Review
Auto financing is generally characterized by an absence of standardized underwriting and servicing. Consequently, loan quality and performance can vary widely among lenders.
AMC diligence extends beyond the borrower's ability and willingness to pay placing a considerable emphasis on each lender's underwriting policies and controls as well as conducting a detailed analysis of any credit scoring system used in the lending process. AMC also considers any servicing factors that may impact credit performance by evaluating the lender's collection policies to determine if they have the experience and capability to appropriately manage the receivables.
AMC uses two sets of basic criteria in our review of auto loans, one for prime and another for sub-prime. Our reviews include, but are not limited to, the following factors to evaluate credit risk: APR, maturity, dealer recourse, new versus used, LTV, "Lemon Laws", direct versus indirect lending, insurance requirements, amortization methods, concentration risk, and payment history. AMC also utilizes various tools such as NADA and Kelly Blue Book to determine book value.