Lenders Protection LLC
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.
- 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%.
CUNA Mutual Announcement of investment in Open Lending - September 30, 2009
CUNA Mutual has entered into an agreement to transfer our existing interest in the Lenders Protection program to Open Lending, Inc. The Lenders Protection program has been offered to our customers through a joint venture between CUNA Mutual and Open Lending since 2003.
Founded in 2000, Open Lending is located in Austin, Texas. We specialize in providing web-based pricing and decisioning technology that helps credit unions approve auto loans for members who don't meet their typical underwriting standards. Open Lending's software platform, LendPro, is designed to integrate its automated loan decisioning tool with indemnity insurance. Open Lending has the expertise to continue to work with you to help you boost your loan volumes, while managing your lending risk. CUNA Mutual has made an equity investment in Open Lending and we’re pleased they share our commitment and drive to meet your overall satisfaction.
Both companies will collaborate closely to transition our Lenders Protection customers to Open Lending with minimal disruption. Transition timing – targeted to occur no later than June 30, 2010 - will be determined by Open Lending’s identification of a new carrier for the indemnity insurance component of the Lenders Protection program. Until that time, CUMIS Insurance Society, owned by CUNA Mutual, will continue to underwrite the insurance for the program.
Rest assured the loans you have written and will continue to write with the Lenders Protection program will be insured for the life of the loan.
While this announcement reflects a change in our Lenders Protection program, our true commitment to your credit union remains unchanged. Our equity investment will support ongoing development and enhancement of lending technology. In addition, this change allows CUNA Mutual to direct more resources and investment to products that serve a broader customer base.