NAF Association launches Phase 2 of Collector and Underwriter Compliance Certificate Programs

HANOVER, Md. - 

Along with highlighting seven major findings and availability of the 2017 Non-Prime Automotive Financing Survey, the National Automotive Finance Association on Friday announced the next stage of its compliance training offerings.

Building off of the momentum generated by wide-spread leveraging of its Compliance Certification Program, the NAF Association launched what it’s calling Phase 2 for the Collector and Underwriter Compliance Certificate Programs. The NAF Association believes Phase 2 of these programs provides the necessary second educational step for collectors and underwriters to stay compliant in a difficult regulatory environment.

“We have found that many NAF Association member finance companies rely on the Compliance Certificate Program to provide necessary front line education for their staff,” said Jack Tracey, executive director of the National Automotive Finance Association.

"Phase 2 of the program equips company management with the opportunity to assess how collectors and underwriters have retained the compliance knowledge acquired in Phase I as well as providing education on current compliance issues,” Tracey continued.

The NAF Association — also one of the industry partners in the orchestration of Used Car Week that begins on Nov. 13 in Palm Springs, Calif. — highlighted both the collector and underwriting courses include coverage of the Equal Credit Opportunity Act (ECOA), the FTC Act and Unfair, Deceptive or Abusive Acts or Practices (UDAAP) and updates on other recent regulatory developments.

To learn more about the Collector and Underwriter Compliance Certificate Programs, go to www.nafassociation.com.

The growth in education offerings arrives as the non-prime automotive financing sector experienced the sixth consecutive year of market growth in 2016, according to the 2017 Non-Prime Automotive Financing Survey co-sponsored by the National Automotive Finance Association and American Financial Services Association.

Through the combined efforts of both associations, 54 companies participated in this year’s survey. This is the 21st year of the survey, started by the NAF Association, and the third year both trade associations have teamed up as co-sponsors. This effort is thought to be the most comprehensive survey of the non-prime auto financing sector.

Over the past few years, significant improvements to the survey have been made. For example, an easier data gathering approach through a web survey and a new reporting format give the report broader and more comprehensive coverage and provides information that cannot be found anywhere else.  Contributing to the report are TransUnion, FactorTrust and Black Book, which are providing additional market insight by supplying data and analysis on nonprime auto financing. 

Key findings from the survey include:

• Sixth consecutive year of market growth

• Competition increases, pace slows

• Banks led market share development with positive gain in 2016

• Several indicators showed a trend towards improved quality including higher credit scores for new and used, decreases in payment-to-income, decreases in average annual net charge-off and annualized repossession rate. 

• Delinquency increases

• Operating expenses increase

• Profit reduction

Benchmark Consulting International administered the survey and provided the report analysis. Participating finance sources responded to survey questions covering topics such as originations, servicing and loss management. The results are illustrated in 129 graphs.

The survey report is distributed at no cost to finance company participants. Others may purchase a copy of the report for $500. To purchase, contact Diane Merino at the National Automotive Finance Association at (717) 676-1533 or Diane.merino@nafassociation.com.  

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