1st Community FCU has participated in credit challenged automobile
lending since September 2002. We currently have $23 million in the
loan program.
George Sweet
Executive Vice President Lending

• By providing financial institutions a way to confidently approve
  borderline loans, lenders now have a powerful way to expand
  their loan portfolios while minimizing exposure.
  Steve Martin
  Former Director Of LP for CUNA Mutual

The Company: An Overview

Open Lending was formed in 2000 in Austin, Texas to provide automated lending services to financial institutions. The company specializes in loan analytics, risk-based pricing, risk modeling and automated decision technology for automotive lenders throughout the United States. The company is privately owned.

In December 2003, Open Lending launched its flagship product, the Lenders Protection Program, as a joint venture with a nationally known insurance provider. This unique auto lending program for direct and/or indirect loans provides a powerful and safe way for lenders to increase loan volumes and yields without adding risk to the loan portfolio. Lenders Protection combines sophisticated risk-based pricing models, configured to each lender's individual cost factors and financial targets, with reliable loan default insurance.

In September 2009, Open Lending secured 100% ownership of the Lenders Protection Program. The company then implemented its strategic plan to expand the benefits of the Program, take advantage of updated technology and deepen its loan analysis expertise.

In fall 2010, Open Lending released the new and improved Lenders Protection Program. With a new insurance partner in place, AmTrust Financial Services and subsidiaries, Lenders Protection is now available to serve all financial institutions and automotive lenders in the U.S. Lenders Protection is truly a program that fits the needs of today's automotive lenders and consumers. No other program in the market today offers lenders the full value proposition offered by Lenders Protection. The new and improved Program features:

• A sophisticated risk-based pricing model that allows the lender to design the risk and pricing characteristics of the insured portfolio
• Pricing models can be stressed or shocked to show the impact of potential changes in economic conditions
• An enhanced underwriting and pricing engine allows the lender to approve and price individual loans to fit the portfolio design and profitability targets
• Improved underwriting rules that identify qualified applicants in the near-prime and non-prime risk categories
• High quality default protection insurance that allows the lender to manage and share risk effectively
• No implementation costs, no hardware or software to buy, and rapid implementation