Open Lending Company Overview
Open Lending, Inc. was formed in 2000 in Austin, Texas to provide automated lending services to financial institutions. From 2001 to 2003, Open Lending developed a software platform and various analytical models to determine the risk of default and loss on auto loans. This knowledge was used to develop an automobile loan default insurance program for credit unions, allowing them to book loans they would otherwise deny.
In December 2003, Open Lending entered into a joint venture with CUNA Mutual Group, a $15 billion insurance company, with over 90% of all U.S. credit unions as customers. Open Lending and CUNA Mutual Group were 50/50 partners in Lenders Protection LLC, that has the exclusive right to offer its Lenders Protection auto loan default insurance program to credit unions. The insurance coverage is provided by CUNA Mutual Insurance Society.
In September 2009, Open Lending purchased its 50% interest in Lenders Protection from CUNA Mutual. CUNA Mutual as part of the agreement has made an equity investment in Open Lending to further its development of the Lenders Protection Program.
Quick Facts
- Lenders Protection has insured over 70,000 loans for credit unions.
- Lenders Protection on average covers 90% of the credit unions deficiency balance.
- With Lenders Protection credit unions on average yield a net ROA of 2.35%.
- There are over 170 credit unions in the Lenders Protection program.
- Lenders Protection has insured over 1.3 billion in auto loans.
- Lenders Protection has an average contract rate of 12.5% and FICO of 652.
- We have interfaced with multiple lending platforms for easy integration.
- Lenders Protection has increased credit unions loan volumes on an average of up to 30%.
Lenders Protection LLC
In 2003, using the technology and analytics created and researched by Open Lending and combining them with CUNA Mutual’s strength and history in the credit union market Lenders Protection LLC, was formed to help credit unions mitigate risk while still offering members attractive rates.
Lenders Protection is a risk management program with default insurance coverage allowing approval for near/non prime automobile loans. Lenders Protection allows credit unions to customize their specific credit union costs and desired ROA while utilizing the Lenders Protection pricing arm.
