1. Indirect Loan analysis by HACKERS
Leon Savvas
Michael Theriot
Dasha Priklonskaya
Date: May 2, 2000

2. 30 day Delinquency Distribution in $

3. Relative 30 Day Delinquency

4. 60 day Delinquency Distribution in $

5. Relative 60 Day Delinquency

6. 90 day Delinquency Distribution in $

7. Relative 90 Day Delinquency

8. Bottom Line B tier is clearly the most delinquent:
At least 60% of 30, 60, and 90 day delinquency comes from the B customers
At least 60% of $ delinquency for B customers is a 30 day delinquency
On the delinquency graphs B curve is always higher than A curve

9. New Loan Origination

10. Prepayment

11. Profit

12. Cumulative Charge-offs

13. Bottom Line
At least 60% of New Loan Origination, Prepayment and Profit come form A customers
Both A and B customers tend to pay off their loans. However, most of the charge off volume come from the B customers. Asymptotically B customers charge offs are 3 times higher than A customers charge offs

14. Charge-offs

15. Bottom Line
B and A customers have a similar charge off pattern, but on different scales
B customers have greater charge off rate than A customers

16. Conclusion
Most of the delinquency and charge off volume can be explained by A and B customers
A and B have similar patterns. However, numerically B always underperforms A
Need to review B tier policies
B tier has good Cash Flows
B tier is less reliable