Subprime Automobile Loan Portfolio Analysis
Analysis Group evaluated plaintiffs’ damages claim relating to the underwriting and loan servicing of subprime automobile loans. The plaintiffs alleged that the servicing company did not properly administer the portfolio of subprime automobile loans, thereby causing excessive loan losses. Our analysis demonstrated that the plaintiffs’ financial experts failed to take into account alternative reasons for loan performance. Analysis of the plaintiffs’ loan volume, interest income, loan loss rate, and deteriorating industry conditions also demonstrated that the plaintiffs’ business plan did not provide a reasonable basis from which to calculate claimed damages.