Challenged Credit Program

Program Guidelines

• Maximum loan amount of $60,000 PLUS BACKENDS - $65,000 all in

• Minimum loan amount of $5,000

• Front end advance must include Tax, Title, License

• Backends include refundable products such as GASP and Warranty

• All approvals subject to final underwriter review and approval prior to funding

• Final rates will be determined by Star USA based on LTV and credit profile

• If deal structure changes, contact credit union

• NO RATE ADJUSTMENTS

Term & Stipulations

• MSRP new vehicles and NADA retail for used vehicles

• POI required for all applications 680 and below

• NO current delinquent car payments or repossessions in last 24 months

• Discharged BK may be eligible/ Dismissed BK must be older than 24 months

• Minimum 2 positive tradelines with 18 months on CBR or minimum of 3 positive tradelines with 12 months on CBR

• No business or commercial loans allowed

• Clean titled vehicles ONLY

• No fully electric vehicles, hybrids are okay

Star Pro - POI Guidelines

Rates are determined based on proprietary credit rating/history and vehicle information.

POI Requirements: Required for indirect applicants 680 and below when proof of income is required, it must be provided for each borrower shown on the application. The borrower’s name must appear on all documentation submitted as proof of income. Document must be legible, unaltered and complete. The best business practice is to obtain proof of income based on the applicant’s gross month;y income. NO HOUSEHOLD INCOME.

Standard paystub requirement: At least one recent paycheck stub or electronic deposit (ACH) confirmation document issued within 30 days prior to loan application created date.The document should show, at a minimum: (1) the pay period date range, (2) gross pay amount for that pay period, (3) employer name, (4) year-to-date gross compensation, and (5) payee name. If year-to-date totals are missing from the paycheck stub, the lender must obtain 2 recent paystubs from the previous 60 days. If the year-to-date amounts, when divided out over the elapsed number of pay periods, do not validate the current monthly gross pay amounts, the lender should obtain an explanantion of why this has occurred. Car Allowance (mileage) should not be used to calculate gross monthly income.

Bank statements in lieu of paystub or ACH: Bank statement should show 1 month worth of direct deposit income to verify net monthly income, which may be “grossed up” by multiplying by 120%. If the direct deposit pay frequency is once per month, 2 months worth of bank statements must be provided.

Handwritten paystub: These require an accompanying letter of employment and one of the following: (1) most recent two months bank statements showing deposits or (2) most recent two months cancelled checks (copies front and back). If checks were not deposited to any account, then copies of the most recent 3 paychecks are required (cancelled or not cancelled).

Length of employment less than 60 days: More than one paycheck stub must be provided. In lieu of the second paycheck stub, letter of employment may be provided that must (1) be typed on company letterhead, (2) include an employer contact name, title and phone number, (3) be signed by the contact listed and (4) indicate the amount of pay per gross pay period and (5) the length of each pay period (i.e. weekly, bi-weekly, semi-monthly, monthly). In general, overtime pay should not be included in the gross monthly income amount for applicants employed less that 60 days.

Income from self-employment, including payments to borrower reported on IRS form 1099/ (Please provide for both applicants)copies of last two years filed federal tax returns, including all attachments and schedules. as an alternative, a copy of the most recently filed federal tax return plus a professionally prepared profit/loss financial statement that includes year-to-date totals and displays the name, address, and contact information for the professional preparer of the financial statement.

Income from other sources

Overtime pay: Overtime pay is acceptable, if it is in the gross income amount for an applicant provided that (1) the applicant typically earns overtime pay each pay period as reflected int he year-to-date income totals, and (2) the applicant has been emplyed at least 60 days.

Temporary employment and employment by temporary agencies: Borrower must demonstrate extended and regular employment at a temporary agency or temporary position over a period of 6 months or more. The applicant must provide at least 3 paycheck stubs and the verifiable amount will be considered the lowest monthly amount of the three. Unemployment income is always temporary income and not eligible for income calculations.

Alimony/Child Support: Obtain court or public documents or payment documents, showing amount, frequency and duration of amounts to be made to borrower OR recent documentation, not more than 60 days old that shows court awarded payments being made for the past 6 months. Acceptable documents to verify receipt of payments are copies of payment checks or copies of financial institution statements that clearly show payments have been made to the borrower’s account. In the cases where these payments are facilitated by a state agency, a payment summary from the agency meets these requirements. If net income, may be multiplied by 120% to estimate gross income.

Fixed income from social security, pension, or retirement income: Agency, legal, or insurance company documents that show the amount, frequency and duration if payments to be made to the borrower, OR recent documentation, no more than 60 days old, that show those benefit payments have been made to the borrower for the past 2 months. Acceptable documents to verify receipt of these payments are (1) award letter or similar government or pension documents to verify the amount and duration of payments (2) copies of financial institution statements that clearly show payments have been made to borrower’s account for past 2 months. If net income, may be multiplied by 120% to estimate gross income.

Rental Income: Borrower must provide tax returns, Schedule E AND rental agreements. In lieu of tax returns, borrower ca verify rental income with one of two alternative methods: (1) most recent 3 months bank statements showing amounts and source of rental income, (2) copies of three most recent rental checks or money orders paid by the renter, copied front and back. Rental agreements are always required. Do not gross up rental income. Ensure debt associated with rental income is included on the application’s debts.