Tool 01 · Underwriting

Deal Underwriter

Should you fund this loan? Enter the borrower, the vehicle, and the deal terms. Get back a defensible fund / counter / decline decision with the actual math behind it. Built for independent dealers, BHPH operators, and credit unions who do not have a credit team in the back office.

0.2ms
Decision latency
FUND
Profitable deal · ROA above target.
Expected ROA of 4.2% over the 60 month life of this loan, comfortably above your 1.5% target. The borrower's risk profile is well matched to the deal structure.
Expected ROA
4.2%
What would make this deal pencil
Deal inputs Live decisioning
Borrower
FICO score615
450deep subprime800
DTI ratio38%
15%healthystretched65%
Vehicle
Wholesale value$14,500
$3KBHPH rangeretail$45K
Vehicle age5 yr
newusedaged15+
Deal terms
Amount financed$15,500
$2KLTV-driven$50K
Down payment$1,500
$010%$15K
APR18.0%
3%primesubprime29%
Term (months)60
12487284
Lender economics
Cost of capital7.5%
2%cu typicalBHPH14%
Opex per loan$200
$50CUindep$800
Target ROA1.5%
0.5%CUindep / BHPH5%
Lender type
Adjusts defaults
Risk metrics Lifetime · per deal
Probability of default PD
22.4%
Lifetime · across 60 mo
Loss given default LGD
52%
Net of recovery
Expected loss EL
$1,805
11.6% of loan amount
LTV at funding LTV
107%
vs vehicle wholesale
Deal P&L · lifetime Per $1 of loan amount
Net profit
$652
Default probability curve · this deal When this loan is most likely to charge off
This deal · cumulative PD by month
Industry avg · same FICO band
Peak risk window
Methodology. Probability of default uses a FICO base rate (1.5% for 800+ FICO, scaling to 40% for sub 500) adjusted for LTV (+25% PD per 10 LTV points above 100), term (longer = higher), DTI, and vehicle age. Loss given default uses LTV at default, expected vehicle depreciation, and recovery cost assumptions. P&L combines lifetime interest at the proposed APR on an amortising balance, less opex, less cost of capital on the average balance over term, less expected credit loss. Decision logic: FUND if expected ROA exceeds your target. COUNTER if ROA is positive but below target. DECLINE if ROA is negative or PD exceeds 50%. Counter offer recommendations isolate the single change that brings the deal above your target ROA with minimum disruption to deal terms. This is a defensible v1 model calibrated to industry published default curves. Replace with your own portfolio history via the dashboard.