Consumer Loans to Credit Deficient, Hispanic Borrowers with Cultural Values
Situation - Client required a valuation on a unique investment in a segmented market of consumer loans to Hispanic borrowers who had little or no credit history. This borrower profile was unique from subprime lending in that these borrowers lacked credit history and due to their cultural values were not likely to default on loans.
BPA solution - BPA reviewed the deal documentation, researched the target market and established benchmarks of historical metrics on defaults and origination channels. Once complete a cash flow model was developed that considered these characteristics BPA modeled the expected cash flows and produced a written report with all assumptions, conclusions and risk factors.
Note: Actual client names have been removed due to confidentiality issues.
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