External Rate Sheet and Underwriting
Guidelines
© Copyright 2011– All Rights Reserved
Page 2
Rev. 03/18/2014
GM Financial
Underwriting Guidelines
Effective March 18, 2014
Note: Customer confirmation calls will be conducted on all contracts prior to funding to verify transactional application data. If
the required documents from the Funding Checklist are not included with the contract package in-house for funding or not
received within 5 business days of receipt of the contract package, the contract package will be returned to the dealer.
Employment
•
Prefer minimum 1 year verifiable employment history
•
Dealership employees are eligible for financing on new GM vehicles. Certain conditions apply
Income
•
Proof of Income (POI) is required on all approvals
•
Pay stub (not older than 30 days from the contract date)
•
Minimum income requirement of $2,000 gross monthly
•
If applicant(s) has secondary income or is considered self-employed or a temporary employee, the following guidelines apply:
o
Applicant(s) must be at their secondary job for at least one year for the secondary job income to qualify. This income
must be supported with the most recent pay stub, no more than 30 calendar days from the contract date
o
A signed Request for Transcript of Tax Return 4506-T form is required for all self-employed applicant(s) to verify income
from previous 2 years tax returns
o
Temporary employees must have a minimum one year history with their current temporary/staffing agency
•
For social security benefits, a copy of the bank statement no older than 30 calendar days from the contract date is required. The
bank statement must provide the applicant(s) name, clearly identify the applicant(s) as receiving the funds, specify who deposited
the funds, and list the name of the banking institution
•
For veteran affairs benefits, the case number is required to verbally verify benefits with the Department of Veterans Affairs
•
For pension and retirement, applicant(s) must provide one of the following: 1) most recent pay stub, not older than 30 days, 2)
copy of bank statement not older than 30 days specifying who deposited the funds
•
Child support and tax-free income are not grossed up
•
A copy of the court order is required and documentation for 5 consecutive payments for child support and alimony (payments must
match court order) or a payment history report from the registry of the court. Verbal verification for child support must come from
the Attorney General’s Office
Residency
•
Prefer a minimum of 1 year verifiable residence history
•
Proof of Residency (POR) is determined on a deal-by-deal basis dependent on applicant(s) information and credit quality
•
If required, provide POR documentation (utility bill within 30 days and/or pay stub within 30 days) to support residence address
Credit
•
No bureau scores below 450
•
Prefer at least 3 years in file and 5 trade lines (3 must be active and current) unless there is a previous bankruptcy in file
•
Chapter 7 and 13 bankruptcies must be discharged
•
No applicant(s) currently involved in Consumer Credit Counseling
•
All applicants must pass standard identity verification checks
Payment and Debt Ratios
•
Payment to Income (PTI) and Debt to Income (DTI) percentages are determined by credit risk
•
All debt-related deductions listed on applicant(s) pay stub are considered in the debt calculations including, but not limited to,
company loans, 401K loans, child support and garnishments
Vehicle Insurance
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Full coverage; maximum $1,000 collision and $1,000 comprehensive deductible
•
No 30 day binders (including spot delivery insurance)
•
Agreement to Provide Insurance complete and signed by dealer and applicant(s)
References
•
The number of references varies by credit risk; however, a minimum of 3 verifiable references is required for each application
o
Persons who reside at the same residence as applicant(s) are not acceptable as references
o
All references must include full name, phone number and relationship to the applicant(s)
Hail Damage
•
If vehicle’s damages and insurance settlement is $1500 or less, subtract check amount from invoice. Use revised figure as base
value.
•
If vehicle’s damage is between $1501 and $2500, use lower of the invoice, less documented insurance proceeds or 90% of
invoice.
•
If vehicle has damage in excess of $2501, use 80% of invoice.
•
Note: If claim check cannot be produced, vehicle will be assessed at 80% of invoice.
