Loan Portfolio Review for Auto, Installment and Home Improvement Lenders
A fixed-price review of one area of your lending business, for auto, installment and home improvement lenders. You pick underwriting, collections or the loan book. We read a sample of your loan files in full and hand you written findings with ranked fixes. HMC's leadership ran a specialty finance company with a lean, specialized team.
What is a loan portfolio review?
We read your loan files the way an operator would. Each file gets a full read: the application, the underwriting decision, the payment history and the collection notes.
You pick one area: underwriting, collections, or the loan book as a whole.
Pick one area
- Underwriting: the application and the underwriting decision in each file, checked against your credit policy, including how exceptions were approved.
- Collections: the payment history and the collection notes in each file, from the first missed payment to resolution.
- The loan book: the files read together, to show how the loans you hold are performing and where the risk sits.
What each file read covers
- The application.
- The underwriting decision.
- The payment history.
- The collection notes.
What does a loan file audit check?
HMC does not do audits. We do an independent file review: we read a sample of your loan files in full and check each one against your credit policy. The checks fall into three parts, listed below. After them is a checklist you can use on your own files today.
Documents and disclosures
We check that every document the file should hold is there, and signed where it needs a signature. A missing or unsigned document is a finding. We do not give a legal opinion on whether a disclosure meets the law. That question goes to your counsel.
Underwriting against policy
We read the application and the underwriting decision and compare them with your written credit policy. Where a loan was approved outside the policy, we look for the approval and the reason in the file.
Payment posting and collections records
We read the payment history and the collection notes in each file, from the first payment through any missed payments to resolution.
Loan file checklist
Use this list on any file in your book:
- Signed contract
- Disclosures
- Application
- Credit report
- Underwriting decision, plus the approval and reason for any exception
- Payment history
- Collection notes
Are your underwriters following your credit policy?
The way to know is to read the files. In the underwriting part of our review, we compare the application and the decision in each sampled file with your written credit policy. The findings show which decisions match the policy and which don't, and which exceptions were approved with no reason on file.
How exceptions are approved and documented
An exception is a loan approved outside your written policy. In each file we look for three things: who approved the exception, the written reason, and whether your policy lets that person approve it. A gap in any of the three becomes a finding, with a ranked fix.
Spotting policy drift
Policy drift is when everyday decisions move away from the written policy and nobody changes the policy. Reading a sample of files side by side shows whether that has happened, and in which part of the policy.
Dealer and contractor oversight
When dealers send you contracts or contractors take applications for you, the files they produce sit in your loan book. Our review reads those files in full, like any other: the application, the underwriting decision, the payment history and the collection notes. Problems that start with a dealer or contractor show up in the findings.
Auto dealers sending you contracts
We check that each dealer contract file holds what your policy requires before funding, and that the facts in the application match the rest of the file. Here is why that matters, in an industry estimate from Point Predictive, which sells fraud tools: "Systematic Dealer Risk, such as repeatedly inflating car values and using fake employment for borrowers, increases lenders' default risk for those dealers by as much as 500%." Source: Point Predictive, 2025 Auto Lending Fraud Trends Report press release, 03/25/2025
Home improvement contractors who originate for you
When a contractor takes the application, we read what the contractor collected: the application and the signed contract. We check each file against your credit policy, the same as a loan your own staff booked.
Why read the files
Two public examples of what weak lending practice costs. Neither comes from home-improvement lending.
- Underwriting: in auto lending, income and employment misrepresentation accounts for "43% of total fraud risk ($3.9 billion)", an industry estimate from Point Predictive, which sells fraud tools. Source: Point Predictive, 2025 Auto Lending Fraud Trends Report press release, 03/25/2025
- Collections: a consumer installment lender was ordered to "pay a $5 million civil money penalty" over improper collection attempts. Source: CFPB enforcement actions
How the review works
- First call. We confirm your book size, the area to review, and the readout date.
- Signing. The readout date is fixed in the contract.
- File review. We read the agreed number of files.
- Readout. We walk through the findings and ranked fixes, and hand over the final report.
What the review delivers
- A written findings report.
- Ranked fixes, with the dollar impact of each.
- A priced menu of next steps.
- A readout meeting, where we walk through every finding and hand over the final report.
Each dollar impact is an estimate, with the assumptions behind it shown.
How many files and how often?
The size of your loan book sets the number of files: 40 files for books under $10M and 60 files for books of $10M to $50M. Larger books are scoped on the first call. How often to review depends on your book's size, risk and purpose. We don't publish a rule for it.
Each review stands on its own, with a fixed scope. You can start with one review and decide on the next from the findings.
| Loan book size | Files reviewed | Length | Price |
|---|---|---|---|
| Under $10M | 40 | 2 weeks | Fixed |
| $10M to $50M | 60 | 3 weeks | Fixed |
| Over $50M | Quoted | Quoted | Quoted |
Independent review vs. internal review
An independent review is done by people who did not make the loans and do not report to the team that did. It does not replace internal audit or legal counsel. It adds a second read of your files from outside the business, with written findings and ranked fixes your team can act on.
What each one is for
Your internal reviewers know your policy and your people. An outside reviewer reads the same files without having made the decisions in them. HMC's leadership ran a specialty finance company with a lean, specialized team. We read files the way an operator would. This is an independent file review, not an audit, and we do not give legal advice.
What does a loan portfolio review cost?
Fixed price, fixed scope, no hourly meter. We confirm your book size on the first call to set the tier. Once the review starts, the price does not change.
Who leads the review
HMC's leadership leads every review.
HMC's leadership ran a specialty finance company with a lean, specialized team.
FAQ
What is a loan portfolio review?
It is a fixed-scope, independent read of a sample of your loan files in one area: underwriting, collections or the loan book. Each file gets a full read: the application, the underwriting decision, the payment history and the collection notes. You get a written findings report, ranked fixes with the dollar impact of each, and a readout meeting.
What does a loan book review actually tell me?
It shows which files have problems and what kind. It also shows what each fix is worth. You get a written findings report, ranked fixes with the dollar impact of each, a priced menu of next steps, and a readout meeting. Each dollar impact is an estimate, with the assumptions behind it shown.
How many loan files do you review?
We read 40 files for books under $10M and 60 files for books of $10M to $50M. Larger books are scoped on the first call. All the files come from the one area you choose: underwriting, collections or the loan book. We confirm the number on the first call, before the review starts.
How long does it take?
Two weeks for books under $10M and three weeks for books of $10M to $50M. Larger books are scoped on the first call. The readout date is fixed in the contract at signing. At the readout, we walk you through every finding and ranked fix, then hand over the final report.
What does a review cost?
A fixed price, set by the size of your loan book and confirmed on the first call. No hourly meter. The price does not change once the review starts. It covers the one area you choose (underwriting, collections or the loan book) through to the readout and the final report.
Can we start with a single review instead of a subscription?
Yes. Each review stands on its own, with a fixed scope and a fixed price. You pick one area: underwriting, collections or the loan book. What comes next is up to you. The findings report includes a priced menu of next steps.
Is a loan file review a substitute for internal audit or legal counsel?
No. It is an independent file review, not an audit, and it does not replace internal audit or legal counsel. We do not give legal advice. We read a sample of your files in one area and give you written findings with ranked fixes. Questions that need a legal opinion go to your counsel.
Will this help us with a Florida OFR or CFPB exam?
The review is built to help you find problems in your own files before an examiner does. It is not exam preparation, and we make no promise about any exam or its outcome. You get a written findings report for the area you choose, with ranked fixes and an estimated dollar impact for each.
Why use an independent reviewer instead of only internal review?
An independent reviewer did not make the loans and does not report to the team that did, so your files get a second read from outside the business. It does not replace internal audit or legal counsel. HMC's leadership ran a specialty finance company with a lean, specialized team. We read your files the way an operator would.
How often should a small finance company do an independent loan review?
It depends on your book's size, risk and purpose. We don't publish a rule for it. Each HMC review stands on its own, so you can start with one review and decide on the next from the findings. The review is built to help you find problems in your own files before an examiner does.
What does an automotive finance compliance consultant do?
The work varies by firm. HMC is not a legal or compliance adviser. We do an independent file review: we read a sample of your auto loan files in full, check each one against your credit policy, and give you written findings with ranked fixes. Questions that need a legal opinion go to your counsel.
Do you work with Florida consumer finance and sales finance licensees?
Yes. The review is built for small Florida lenders licensed by the Florida Office of Financial Regulation, including consumer finance companies, sales finance companies, motor vehicle retail installment sellers such as buy here pay here dealers, and home improvement retail installment sellers. License types: Florida OFR.
What do you need from us?
On the first call, we need your loan book size and the one area you want reviewed: underwriting, collections or the loan book. At kickoff, we send a scoped request for the files, policies and reports for that area. We then read the agreed number of files and walk you through the findings at the readout.