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%.
Lenders Protections Acquisition Announcement - September 30, 2009
On September 30, 2009, Open Lending purchased Cuna Mutual's 50% interest in Lenders Protection, LLC which was a joint venture company created by Open Lending and Cuna Mutual Group in December of 2003. For the past six years the Lenders Protection program has been offered to credit unions all over the country. The initial rollout of the program was done in a controlled environment and limited to a few credit unions for the first two years. After the successful pilot program, it was decided to launch the program nationally in 2006. Lenders Protection serves approximately 170 credit unions insuring over $1.3 billion in automobile loans and helping over 70,000 credit union members obtain auto loans at credit unions that would have otherwise been denied. Those members would have otherwise been subjected to much higher interest rates. We have also been able to help credit unions achieve higher net ROI's on their auto portfolios in a market place that continues to squeeze margins on their prime portfolios. This program was designed specifically to help credit unions reach out to the underserved marketplace while providing the safety net of an insured loan portfolio.
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 which is currently being provided by Cuna Mutual Insurance Society. Cuna Mutual will continue to write the insurance for the next 9 months or until we secure a new carrier. We are in negotiations with several carriers that we feel will meet or exceed all of your due diligence requirements and rating standards. 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 which will support ongoing development and enhancement of lending technology.
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.
Until further notice, please continue to rely upon your Lenders Protection Sales Specialist for any questions you have about your Lenders Protection program or contact Open Lending at 888-892-3555.