Lenders Protection
Automated risk management software platform, with third-party auto loan default insurance, allowing our lending customers to approve near/non prime automobile loans. Customers specify their unique costs and desired ROA. Interest pricing engine customizes loan interest rates to recover costs and achieve ROA.
How many lenders participate in the Lenders Protection Program?
Over 150 lenders served.
What size lenders participate in the Lenders Protection Program?
The Lenders Protection Program is attractive to lenders of all sizes that have an interest in increasing new and used auto loan volume their either direct-to-borrower lender or through their indirect lending channel. There are no transaction or funding minimum requirements for the program. There are no implementation costs, software costs, maintenance fees or other up-front costs. Lenders pay insurance premiums and fee only on funded loans.
What is the average recovery on losses for defaulted loans?
Average recovery of losses from insurance payments – about 85%
Can Lenders Protection be customized to fit a specific lender?
Each lender sets up its own unique financial goals expressed as a targeted yield and targeted net ROA after all costs and expenses. Generally, lenders earn 300% to 400% higher net ROA on Lenders Protection loans than they earn on their prime auto portfolio. To date, 99% of Lenders Protection lenders are earning yields and net ROA in excess of their targets.
Is the lender or the borrower the one actually insured?
With Lenders Protection the lender not the borrower is the insured. There is no disclosure to the borrower that the lender has purchased insurance to protect the loan.
What extra marketing costs should a lender expect by adding Lenders Protection?
Lenders should expect little to no extra costs when it comes to marketing for Lenders Protection. Lenders Protection actually focuses on taking current loans that you may be declining and or loans that you may be approving but due to stipulations and down payment requirements you may not currently be booking. You will see by using Lenders Protection we help expand your current underwriting rules and give you the flexibility to say yes more often.
What does it cost to use the Lenders Protection Program?
There is actually no cost other than the pull of a credit report until you actually book insurance on a specific loan.
Is Lenders Protection Available for motorcycles or recreational vehicles?
Currently Lenders Protection is only available for automobile loans and light trucks.