Delinquencies

4 new enhancements to Spireon’s GPS solution

IRVINE, Calif. - 

Spireon rolled out four enhancements to its GoldStar GPS solution on Wednesday designed to help mitigate risk and enhance repossession and recovery activities of large buy-here, pay-here dealerships and finance companies that originate contracts with subprime customers.

The company also added a new, nationwide impound lot database, prebuilt into the platform, and available for both GoldStar Pro and GoldStar Enterprise customers.

“Non-prime auto lenders face expensive and time-consuming challenges in servicing loans, communicating with buyers, managing risk, and recovering vehicles when necessary.  These challenges are amplified when dealing with a high-volume of vehicles across multiple dealers and branches,” said Brian Deeley, director of product management at Spireon.

“GoldStar Enterprise is specifically designed to manage high-volume operations and streamline business workflows across different branches, divisions and partners,” Deeley continued.

GoldStar is now available in three versions to suit customers of all sizes.  Small BHPH dealers can use entry-level GoldStar Basic for vehicle location monitoring, payment reminders, and recovery.  GoldStar Pro adds predictive reporting and customizable integration features for more complex dealerships.  New GoldStar Enterprise extends the features of GoldStar Pro with workflow tools to streamline the management of multi-tiered operations, including:

—Sub-accounts for dealer partners: Finance companies can provide account access to dealers they finance, enabling them to use GoldStar's secure, online portal to manage and monitor vehicles under contract.

—Request installation service: Finance companies can place GPS installation requests on behalf of their dealers or delegate their dealers to make their own requests in the portal.  Automated workflows will notify and schedule the Spireon installation team on behalf of the finance company and will also notify the finance company when the installation is completed.  

—Device ordering and activation: Device orders can be placed via web portal by the finance company on the dealer’s behalf, or delegated to their dealers for self-service ordering. Post installation, finance companies can ensure devices are reporting correctly and vehicle information is entered into the system correctly before funding loans.

—Asset groups: Enables grouping of the device/vehicle population into subsets by dealer branch, assigned collection agent, or portfolio.  Asset groups can allow finance companies to limit vehicle data to a specific set of users, preventing access to information for vehicles outside the group, which is also available in GoldStar Pro.

Spireon also has added a new Impound Lots feature to GoldStar Pro and GoldStar Enterprise, which can alerts dealers and finance companies when vehicles have been taken to an impound lot. 

The company insisted the feature includes the largest pre-built database of impound lots in the nation, with ongoing additions to the repository on a regular basis.  GoldStar users can submit additional local Impound Lots to the system using a simple online button. 

“Tow yards will typically wait 10 to 14 days before notifying us that one of our vehicles has been in their impound lot.  Depending on the city, fees can range from $50-$115 per day.  By sending alerts to us within a day instead of weeks, the new Impound Lots feature in GoldStar could save us thousands of dollars every week,” said Laverne Davidson of LD Motors.

Reggie Ponsford, Spireon's senior vice president of sales for automotive solutions, added, “Our objective with GoldStar is to provide early warning signs of potential defaults, allowing dealers and lenders to engage early and help customers stay in their vehicles and stay on payment schedules.

“Proactively communicating with customers based on GoldStar’s predictive analytics has resulted in significant cost savings for our customers, and in many cases, allowed them to collect three to four more payments per loan on average,” Ponsford went on to say.

To learn more about GoldStar Enterprise and other GoldStar features, visit www.spireon.com/goldstar-gps-vehicle-tracking.

2 users describe positive outcomes using MBSi’s Recovery Connect platform

PHOENIX - 

A pair of users who have deployed Recovery Connect, MBSi’s next generation recovery assignment management platform, described the successes each one has enjoyed with the solution.

To recap, the Recovery Connect mobile app can connect finance companies with recovery agents in real-time allowing both to make decisions related to asset recovery, transport and remarketing, regardless of whether the finance company uses a direct or forwarding company assignment strategy.

Justin Zane, co-founder of Clearplan, confirmed the improvements in data integrity and the importance of timely information for agents using Recovery Connect.

“Our users immediately noticed the Recovery Connect data from MBSi was more accurate and could be confidently relied upon to make decisions in the field, which isn’t necessarily the case with the integrations from other platforms,” Zane said.

MBSi explained the recovery professional in the field oftentimes is several systems removed from the finance company’s collection system of record which causes an individual to manually enter crucial account information from system to system. Errors are easily copied from one system to another, which creates compliance complications with finance company’s downstream processes, such as sending the Notice of Intent to Sell and redemption forms. When coupled with delays, the finance company is unable to recall a recovery in the field due to receiving payment and wrongful repossessions occur.

In addition to preventing wrongful repossession, MBSi highlighted that Recovery Connect can open up opportunities for the client to improve processes that have traditionally plagued finance companies.

Once a recovery agent recovers a vehicle, the information gathered in the mobile app enables the lender to start processing the recovery, verify storage location, send Notice of Intent to Sell letters, arrange for transport and optimize remarketing channels. Each process can be started within minutes, not days, of the recovery.

Here are some of the unique features, and how they can help finance companies improve their processes: 

• Pre-Recovery Status Check: ensures that the field agent has the latest account status prior to recovery and restricts access to recovery capabilities if the assignment is “closed” or “hold.”

• On Hook: Status that immediately notifies lenders when an asset is recovered and to not accept payment.

• Storage Lot Validation: Directs asset to only be stored in an approved and inspected storage lot through MBSi’s integration with Recovery Industry Services Company (RISC).

• Agent Compliance: Ensure that field agents who come in contact with consumers have proper training and certifications, and block assignment access for any agency or field agent who falls out of compliance.

• Quick Update: Recovery agents review and update assignment information. Updates are immediately sent back to the forwarder and/or finance company.

• Instant Condition Report: Images and data gathered through the recovery process produces a detailed condition report and photos available within minutes of the repossession.

“The Recovery Connect mobile app allows the agent to take pictures creating vehicle condition reports within minutes of the recovery which save us, as well as our agents, countless hours,” said Josh Elias, president of Del Mar Recovery, one of the nation’s leading forwarding companies.

“For Del Mar, it is more than condition reports. It has eliminated wrongful repossessions caused by the delay in information passing through various industry software platforms. Regardless of the software system the agent uses, we can immediately update the field agent when our clients change an assignment status,” Elias continued.

The Summer Supervisory Highlights from the Consumer Financial Protection Bureau recognized the importance of timely information and the use of “a system that requires repossession agents to verify that the repossession order is still active immediately prior to repossessing the vehicle, for example, through a specially designed mobile application for that purpose.”

Cort DeHart, corporate strategy manager of MBSi, reiterated why this tool can accomplish what the CFPB described and more.

“The success of the Recovery Connect deployment lies in the groundwork that was laid,” DeHart said. “For more than two years, MBSi worked with lenders, forwarders, skip tracers, routing platforms, LPR providers, transport companies and other vendors in the industry to make the necessary real-time web service connections that allows all participants in recovery process to have the same information at the same time.”

Since deployment in May, Recovery Connect has been adopted by more than 1,500 recovery companies, with more than 5,000 users using the mobile app daily. These users have now successfully completed more than 200,000 vehicle recoveries using the mobile app saving countless hours and improving recovery compliance.

To learn more about how Recovery Connect potentially can streamline data flow and eliminate wrongful repossessions, go to www.mbsicorp.com.

October defaults continue cyclical pattern, climbing another 6 basis points

NEW YORK - 

Continuing a cyclical pattern S&P and Experian analysts have seen for nearly a decade, the auto finance default rate moved higher in October; and actually to the highest level in almost three years.

According to the auto finance component of the monthly report from S&P Dow Jones Indices and Experian, October defaults rose 6 basis points on a sequential basis to land at 1.11 percent; the first time the reading has been that high since January 2014. However, data going back 10 years shows that these reading usually tick up in the fall and typically crest in February or March as income tax refunds flow back into consumers’ hands.

Meanwhile, the composite rate of the S&P/Experian Consumer Credit Default Indices — which represent a comprehensive measure of changes in consumer credit defaults — ticked 2 basis points higher in October compared to the previous month, coming in at 0.90 percent.

The rate for first mortgages and bank cards rose as well, marking the first time since January that those two segment climbed along with the auto finance reading.

The bank card default rate rose 13 basis points to 3.28 percent. The first mortgage default rate increased 1 basis point from September to 0.67 percent.

Rather than auto finance, it’s the bank card reading that has analysts a bit concerned since that is now more than 50 basis points higher than the rate from one year ago. Comparatively, the auto and first mortgage default rates are both within 3 basis points of their levels from one year ago.

The uptick in the national bank card default rate was the first monthly increase since May 2017. All four census divisions recorded a rise in bank card default rates in October.

The Midwest, where the rate increased 17 basis points to 3.20 percent, represented the largest monthly increase. This region was followed by the West, which came in at 3.23 percent, a 15-basis points increase.

The bank card default rate in the Northeast rose 11 basis points from last month to 3.16 percent, while the rate in the South jumped 10 basis points to 3.44 percent.

Looking at October data even deeper, S&P and Experian found that three of the five major cities they track saw their composite default rates rise in the month of October.

Chicago had the largest increase, up 8 basis points to 1.08 percent.

Los Angeles increased 7 basis points to 0.72 percent, while New York came in at 1.00 percent, up 3 basis points from September.

The default rate for Dallas was unchanged at 0.78 percent, while Miami dropped to 1.06 percent, representing a 13 basis point monthly decrease.

David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, reviewed the October data and arrived at these assessments.

“The economy is doing well, with 3% GDP growth in the third quarter, stable inflation, low unemployment and retail sales growing at a 4 percent annual rate. Auto sales jumped in September after drifting lower for most of the summer and then pulled back slightly in October,” Blitzer said. “The data does not suggest any unusual financial stress facing consumers which would explain the small, but across the board, increases in the default rates.

“Looking more closely at consumers, monthly measures of consumer sentiment and expectations remain strong,” he continued. “People are spending: auto sales, retail numbers and discretionary items such as restaurants are all gaining. Total consumer credit outstanding is growing at a 6.6 percent annual rate while revolving credit outstanding is rising at a 7.7 percent annual rate.

“The one concerning item, which might explain the default numbers, is recent softness in real disposable personal income,” Blitzer went on to say. “If a widening spread between income and spending appears, defaults may fill the gap.”

Jointly developed by S&P Indices and Experian, analysts noted the S&P/Experian Consumer Credit Default Indices are published monthly with the intent to accurately track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien and second mortgage lien.

The indices are calculated based on data extracted from Experian’s consumer credit database. This database is populated with individual consumer loan and payment data submitted by lenders to Experian every month.

Experian’s base of data contributors includes leading banks and mortgage companies and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.

Originations slow for fourth straight quarter

CHICAGO - 

It’s no secret that the auto finance industry is taking its collective foot off of the origination accelerator. In fact, TransUnion now has seen originations soften on a year-over-year basis for four quarters in a row.

Displayed one quarter in arrears, TransUnion’s recently released Industry Insights Report indicated that originations declined by 2.2 percent between Q2 2016 and Q2 2017.

Analysts explained the decline was driven by a 5.9-percent drop in subprime, near prime and prime contract openings. They added this downward movement was partially offset by a 3.2-percent rise in originations to the least risky consumers in the prime plus and super prime risk categories over the same time period.

As a result of this shift, TransUnion pointed out that 2.3 points of market share have shifted from subprime, near prime and prime to prime plus and super prime.

While overall auto-finance balances rose 5.9 percent between Q3 of last year and Q3 of this year, the development marked the lowest year-over-year growth rate since Q3 2012. As balance growth slowed, analysts mentioned serious auto finance delinquency rates — contracts more than 60 days past due — rose 7 basis points in the last year to close the third quarter at 1.40 percent.

“Though serious auto loan delinquency rates are slowly rising, we still do not believe this is a cause for concern,” Brian Landau, senior vice president and automotive business leader at TransUnion, said. “The recent uptick in delinquencies was driven primarily by ‘relaxed’ underwriting standards from recent years, which drove non-prime origination growth.

“The recent decline in originations is due to the tightening of underwriting requirements and the slowing demand for new vehicles,” Landau continued. “Despite fewer originations, there is evidence that more people will be opening auto loans in the near term.

“In September, U.S. light vehicle sales increased for the first time this year on an annual basis. Also, there will likely be several thousand new vehicles purchased as a result of the hurricanes in Florida and Texas,” he went on to say.

Q3 2017 Auto Finance Trends

Metric Q3 2017 Q3 2016 Q3 2015 Q3 2014
 Number of Auto Loans  78.6 million  74.8 million  69.8 million  64.6 million
 Borrower Level Delinquency Rate (60+ DPD)  1.40%  1.33%  1.19%  1.20%
 Average Debt Per Borrower  $18,567  $18,361  $17,946  $17,351
 Prior Quarter Originations*  7.1 million  7.3 million  7.2 million   6.8 million
 Average Balance of New Auto Loans*  $20,653  $20,436  $20,097  $19,524

*Note: Originations are viewed one quarter in arrears to account for reporting lag.

Q3 2017 Auto Finance Performance by Age Group

Age/Variable 60+ DPD Annual Pct. Change Average Loan Balances Per Consumer Annual Pct. Change
 Gen Z (1995 – present)  1.86%  7.0%  $13,796  2.8%
 Millennials (1980-1994)  1.87%  3.4%  $17,574  2.0%
 Gen X (1965-1979)  1.59%  3.0%  $20,798  1.9%
 Baby Boomers (1946-1964)  0.86%  5.2%  $18,514  0.6%
 Silent (Until 1945)  0.76%  9.2%  $14,608  -1.4%

 

RISC makes comprehensive repossession lot inspection reports available

PALM SPRINGS, Calif. - 

The leadership at Recovery Industry Services Co. (RISC) heard panel discussions and networking dialogue from industry participants during Used Car Week about the importance of compliance for third-party vendors. The situation reinforced why RISC rolled out its latest offering on Tuesday.

RISC’s Lot Inspection Service includes current reports on more than 1,500 recovery companies that collectively operate more than 3,000 recovery storage lots nationwide. Together, RISC estimated these lots store more than 95 percent of the repossessed vehicles recovered throughout the United States each year.

“Regardless of a lenders assignment strategy, annual inspections can be difficult to schedule, perform and maintain. In turn, the repossession company gets inundated with inspection requests from forwarders and lenders taking valuable time away from repossessions they need to perform,” RISC founder Stamatis Ferarolis said.

“This coupled with variations in reports drove the initiative for RISC to perform and maintain standard lot inspections across the country,” Ferarolis continued.

RISC’s Lot Inspection Service includes:

—Office inspection
—Vehicle security
—Key storage and security
—Personal property security
—IT security

Ferarolis emphasized that two industry problems are solved with this solution.

First, the finance company can be alleviated from managing this portion of the vendor vetting process mandated by the Consumer Financial Protection Bureau.

Second, the recovery agency is relieved of the burden of having multiple lenders inspect the same lot.

“RISC’s Lot Inspection Service saves time and resources for all parties,” Ferarolis said, “and provides the lender with a single source to quickly, and economically, gain access to current, comprehensive lot inspections on every lot in which a consumer’s vehicle may be stored.”

Inspectors must complete Inspector Education, RISC’s proprietary training program. This training was developed specifically for repossession lot inspectors to ensure an objective report of the property. Each report is accessible online so it is easy for lenders to gather the necessary documentation required by auditors or third party regulators such as the CFPB.

Between now and the end of the year, finance companies can take advantage of RISC’s free vendor compliance analysis. This vendor analysis will provide the lender with a snapshot of their vendor’s compliance status, which will include information on lot inspections as well as business license, insurance, background checks and other vital compliance data.

To sign up and get your free analysis, go to www.riscus.com

DRN’s LPR data now included in masterQueue’s dashboard

PALM SPRINGS, Calif. - 

One of the benefits of Used Car Week is the networking that happens among auto finance service providers. Some of the fruit of that ongoing networking between two of Used Car Week’s staunchest supporters ripened on Monday.

Digital Recognition Network (DRN) and Intellaegis, which does business as masterQueue, announced that DRN’s vehicle location data has been added to the masterQueue platform for finance companies that have adopted the DRNsights Enterprise data solution, which has been designed to reduce losses drastically and make right party contact.

DRN’s vehicle location data is gathered from nationwide license plate recognition (LPR) sightings 365 days a year. The LPR data includes the date, time and location of each sighting.

Now, this data will be added and compared to other public records information inside the masterQueue platform. Merging multiple data sources can help finance companies better determine the chance for positive collection or recovery resolution.

John Lewis, president and founder of masterQueue, explained it this way, saying, “masterQueue adds value to DRN’s LPR data by automating the gathering process, then merging and scoring it with other public records information. This can result in a higher masterQueue ‘Findex’ score when key, unique DRN data is delivered to our platform.

“Simply put, this allows users to focus on the most relevant LPR data first,” Lewis continued. “The Findex score helps lenders determine the probability of locating a customer they’ve lost touch with, or of repossessing their collateral if collecting the debt is no longer an option. The value driven from DRN’s historical data adds new insights to make more right party contacts or to locate more lost assets — insights that you can only get from the type of high-quality LPR data DRN delivers in masterQueue.”

As part of the integration, DRN’s data has been added to the masterQueue automated workflow to alert users of which LPR data to look at first. 

For example, if the customer’s address of record and public records data shows the customer living in Florida, but the LPR data shows the vehicle is in Texas; this unique data can allow the finance company to make a more informed decision on what the most appropriate next step should be.

“The integration of our data into masterQueue for DRNsights Enterprise customers makes our data more readily available to collectors,” said Jeremiah Wheeler, vice president of financial services at DRN.

“When you add our vehicle location data to masterQueue’s other data sources and automated workflow, you get improved resolution rates and can make more right party contact. Together, we help auto lenders reduce loss and better manage risk,” Wheeler went on to say.

Emre Ucer: 2017 Repossession Executive of the Year

PALM SPRINGS, Calif. - 

Some individuals find riding motorcycles exhilarating, especially as they gain more experience with the machines. But just like with vehicles, sometimes these individuals do not keep up with their financial responsibilities mandated in a contract, triggering a repossession.

As an executive who has spearheaded growth of powersports leasing as well as streamlining processes for when defaults occur, MotoLease managing partner and chief operating officer Emre Ucer has been selected as the 2017 Repossession Executive of the Year, an honor sponsored by Consolidated Asset Recovery Systems (CARS).

Ucer will be a part of the festivities at Repo Con during Used Car Week, which begins on Monday in Palm Springs, Calif.

“Consolidated Asset Recovery Systems is honored to present Emre Ucer with the Repossession Executive of the Year Award,” said Terry Groves, co-founder and senior vice president at CARS. “Emre is an integral part in leading change and growth within MotoLease. His knowledge and experience in collections, repossessions and remarketing sets him apart as one of the leaders in the powersports industry.

“Under the leadership of Emer, MotoLease has streamlined various aspects of the repossession and remarketing process, which has proven to be a worthy investment,” Groves continued. “He partnered with Consolidated Asset Recovery Systems utilizing the IBEAM compliant management platform, which allowed MotoLease analytic metrics to refine the entire lifecycle of an asset.

“Recoveries encompass one of the most challenging jobs of the finance industry, and MotoLease handles these obstacles successfully because of Emer’s expertise and leadership,” Groves went on to say.

While new-vehicle leasing is a significant part of the financing activity at franchised dealerships, leasing is gaining momentum in powersports, too. Ucer explained why MotoLease is capitalizing on that potential as a company that specializes in working with customers who have had credit challenges in the past.

“Leasing is a new concept in powersports even though it is a perfect fit for a lot of the riders,” Ucer said. “Most consumers start riding in smaller engine size motorcycles and move up to bigger vehicles as they gain experience which makes leasing a great option to consider because it makes changing vehicles possible every few years without worrying about negative equity.

“When we started MotoLease in 2010, there was no leasing option in powersports, and now 7 percent of the financing in the industry is provided as a lease, and we provide 80 percent to 90 percent of the leases in the industry,” he continued. “It is very exciting to be part of this shift, and we believe that we can increase the share of leasing in total financing up to 30-percent level in a similar way to the auto market.”

As the company works toward the 10-year mark in business, Ucer praised the team MotoLease has in place.

 “We do not offer any tangible products such as vehicles, appliances or furniture. The consumer experience with MotoLease is based on the service that our people provide,” Ucer said. Without our team, MotoLease doesn’t exist.

“We focus on making the dealer and end-user customer experience as good as it can be,” he continued. “Some consumers may not have the best credit profile, and some dealers may not have the largest volume, but I’m proud to say that our team treats everyone with the same high level of respect, same level of attention and fairness.

“There is always room for improvement, but MotoLease accomplished so much in the last few years because of our team, and our team is still very motivated and excited to do much more in the coming years,” Ucer added.

Ucer boasts 20 years of professional experience. Before coming to MotoLease, Ucer was chief operating officer at Loan America. He also served as COO for Select Payments/Westwood Group.

Drawing on his background, Ucer shared a message to a young manager who is just embarking on a career in powersports finance on how to flourish in this business.

“As an industry, powersports is behind auto playing the catch up game for the last few years, which creates a lot of opportunities on all fronts including dealerships, manufacturers, finance and service providers,” he said.

“It is a great time to get involved in powersports to make a difference and advance a career probably faster than any other vertical,” Ucer continued. “That being said, there are no shortcuts; success comes when good ideas are combined with hard work.”

When not engrossed in his MotoLease responsibilities, Ucer enjoys spending time with his young children ages 4 and 6 and an occasional round of golf. He also has participated in club level auto racing as a hobby, but business and family commitments have curtailed that activity a bit.

“But I try to do few races a year,” he said.

Now perhaps along with a checkered flag, Ucer can add the 2017 Repossession Executive of the Year Award to his mantle.

“I’m honored to receive this award on behalf of my team at MotoLease. I’m delighted for the recognition of how much our team accomplished in the last few years. We always have room for improvement, but we greatly appreciate the recognition,” Ucer said.

4 suggestions to combat cyberattacks

IRVING, Texas - 

David Kennedy of First Credit Resources, who is the current president of the American Recovery Association and one of the speakers on tap for Used Car Week, offered four suggestions for what protective moves repossession agencies, another other service providers, should make with their computer and technology systems.

Coinciding with October being National Cybersecurity Awareness Month, Kennedy recommended that companies at least should have:

— Firewalls

— Cybersecurity programs, such as Malwarebytes or Norton that can help block malware, ransomware, adware and other threats

— Use a password manager.

— Ensure your Wi-Fi is secure on mobile devices.

“With these in place, you can keep out a lot of the bad stuff. Just remember, there are consequences for your online actions,” Kennedy said in a message ARA distributed last week.

“In the end, the keys are: Get educated, and be diligent. Employees have to be made aware that what may appear to them a harmless Internet connection can open the door for a ruthless cyberattack,” Kennedy continued.

More data about cyberattacks and what the industry can do to prevent them can be found on ARA’s website at www.repo.org.

Auto defaults jump by 10 basis points in September

NEW YORK - 

Auto defaults continued their cyclical move higher in September, crossing the 1-percent threshold and landing at nearly the highest spot in three years.

The data through September reviewed by S&P Dow Jones Indices and Experian showed that auto finance defaults increased 10 basis points to 1.05 percent. That’s the highest level analysts have seen since February 2015 when the reading came in at 1.06.

The vehicle finance segment of the S&P/Experian Consumer Credit Default Indices now has climbed for three consecutive months after dipping to the low point of the year back in June at 0.82 percent.

After increasing 9 basis points in August, the auto finance default rate increased 10 basis points in September. These are the two largest month-over-month increases since December 2011.

Meanwhile the composite rate — a comprehensive measure of changes in consumer credit defaults — ticked up 2 basis points in September from the previous month to come in at 0.88 percent.

The first mortgage default rate increased 1 basis point from August to 0.66 percent.

The bank card default rate continued to fall, down 4 basis points to 3.15 percent, dropping to its lowest level so far in 2017. As in August, bank cards were the only loan type to see a decrease in default rates in September.

Four of the five major cities that analysts watch regularly produced default-rates increase in September.

Chicago and Miami had the largest increases, each up 6 basis points to 1.00 percent and 1.19 percent, respectively.

New York came in at 0.97 percent, an increase of 2 basis points from August.

Dallas reported an increase of four basis points to 0.78 percent.

Los Angeles was the only major city reporting a decrease with a 1 basis point drop to 0.65 percent.

While there were increases in many places of the team’s monthly update, David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, did not ring alarm bells.

“While the composite consumer credit default rate eased higher in the last three months, it is even with the level of one year ago,” Blitzer said. “Looking at the components, we see that moves among mortgages, bank cards and autos have tended to offset one another over the past year. As a result, no sector is currently showing substantial increases or signs that consumers are facing renewed financial stress.

“Other economic indicators through the summer echo consumers’ favorable condition: debt service as a proportion of income is modest while consumer credit and mortgage borrowing continues to see moderate expansion,” he continued.

“Consumers in some parts of the country may face other challenges that could shift the consumer credit default picture. Hurricanes Harvey and Irma wreaked havoc across the South and southeastern United States; more recent wildfires in California and the west are creating further damage and loss,” Blitzer went on to say.

“Estimates of hurricane damages suggest a total cost of $70 billion including the loss of possibly one million automobiles,” he added. “Damage estimates for the fires are still being determined. Even after insurance coverage and government aid programs, many consumers will face very large unexpected expenses stressing their personal financial situations. Increased consumer credit default rates over the next several months are likely.”

Jointly developed by S&P Indices and Experian, analysts noted the S&P/Experian Consumer Credit Default Indices are published monthly with the intent to accurately track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien and second mortgage lien.

The indices are calculated based on data extracted from Experian’s consumer credit database. This database is populated with individual consumer loan and payment data submitted by lenders to Experian every month.

Experian’s base of data contributors includes leading banks and mortgage companies and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.

FactorTrust and Intellaegis partner to leverage complimentary platforms

ATLANTA - 

Two Used Car Week exhibitors — FactorTrust and Intellaegis — announced an integration partnership on Thursday.

Executives explained the servicing platform, masterQueue, which combines artificial intelligence with predictive data is set to leverage FactorTrust’s proprietary alternative credit data to locate lost customers and assets.

Intellaegis will use FactorTrust’s real-time data with its finance company customers for collections and recovery.

“Integrating FactorTrust’s proprietary data serves to strengthen our unmatched collection of traditional, alternative and niche data,” Intellaegis chief executive officer John Lewis said. “Layering Factor Trust’s unique predictive data on top of mainstream data improves masterQueue’s AI to facilitate the contact management process in regard to high-risk customers at the earliest delinquency stage possible. “This streamlines many manual, outdated debt collection and skip tracing data gathering and data usage techniques that are centered around locating lost customers.

“By automating the gathering, organizing and tracking of this extremely valuable data in a secure, and equally important, full state and federal regulatory compliant manner, the opportunity to locate and speak with a lost customer to help cure their debt gives our mutual customers the data and technology to improve their current contact management process,” continued Lewis, who will be making multiple appearances during Repo Con at Used Car Week, which begins on Nov. 13 in Palm Springs, Calif.

In 2016, American Banker ranked Intellaegis No. 11 among the top 20 FinTech companies to watch.

“We’re pleased to partner with Intellaegis to be part of the solution to the ongoing challenge of recovery management,” FactorTrust chief executive officer Greg Rable said.

“Our alternative credit data, combined with Intellaegis’ mainstream data, helps their lender customers to maximize their efforts in locating and prioritizing accounts, and hopefully, turn them into valuable future customers by satisfying those accounts,” Rable went on to say.