Leveraging the possibilities of alternative credit data to enhance the underwriting process percolated several times during industry events earlier this year. On Tuesday, FactorTrust responded to the inherent need for increased credit opportunities for non-prime consumers by rolling out a new tool the consumer data provider is calling LendProtect Auto Score.
FactorTrust explained the LendProtect Auto Score is a credit risk solution for auto finance companies serving non-prime consumers that is delivered independently of the three largest credit bureaus and is based on FactorTrust’s alternative credit data. The core data that is used to define a consumer’s score includes:
— Unique alternative tradeline data
— Application information
— Stability metrics
— Payment data
FactorTrust chief executive officer Greg Rable insisted those four data points are not available through the major credit bureaus. Rable indicated expansions of the score this new tool can produce are available. That expansion can include other data points such as public records.
“The best indicator of future performance is past performance. In the past, lenders serving non-prime consumers have not had a full picture of a consumer’s credit history,” Rable said. “That changes with the LendProtect Auto Score, which opens up more auto credit access to millions of people who need access to transportation.”
FactorTrust reiterated the depth of the potential market where LendProtect Auto Score could be useful. The company pointed out there are more than 50 million non-prime consumers in the U.S. who do not choose to use traditional credit opportunities due to convenience, lack of credit history or lack of a relationship with a credit provider.
FactorTrust also referenced a study by the Credit Union National Association, which estimated that this same population of people can increase their income by as much as 25 percent if they have access to reliable transportation.
And to help finance companies cater to this demographic and potentiall enhance quality of life, Rable said, “This score is purpose-built for the non-prime auto area.
“The consumer characteristics captured in the LendProtect Auto Score are tuned to the unique consumer profiles in this specific market,” he continued. “Now non-prime consumers that have low FICO scores can benefit through increased access to credit and better rates, when positive alternative credit history is found in our database.”
FactorTrust went on to mention that finance companies that leverage the LendProtect Auto Score now can offer consumers more flexibly priced loans, while at the same time mitigate losses through the incorporation of alternative credit data.
Using proprietary alternative data, the LendProtect Auto Score can capture the highest-risk consumers in lower score bands and promotes the lowest-risk consumers into higher score bands. This process can allow finance companies that are working with consumers that would have identical profiles within the three large credit bureaus to be decisioned more accurately.
“We are proud to offer the auto industry a solution to help them better serve non-prime consumers. Through this product we are further establishing FactorTrust as the leading provider of alternative credit data for the auto lending industry,” Rable said.
FactorTrust added the LendProtect Auto Score is compliant Fair Credit Reporting Act and the Equal Credit Opportunity Act.
Finance companies that are interested in learning more can visit www.factortrust.com.
On Monday, F&I program provider RoadVantage added three industry veterans who have decades of dealership experience to its sales team, as well as a trio of new regional offices.
Joining the company leadership team is Dave Bouchat, who comes to RoadVantage from DCH Auto Group. A 30-year industry veteran who was with AutoNation prior to DCH, Bouchat now is with RoadVantage as vice president of business development.
Phil Mullen, an NADA Dealer Academy graduate with 30 years of retail experience, joined RoadVantage as national sales manager. Mullen has worked with dealerships as well as agencies, including Fidelity Dealer Services and JM&A.
Furthermore, Sue Ann Caruso, also with 30 years of dealership and agency experience including several years with Country Auto Group, now is a regional vice president with RoadVantage.
“RoadVantage is distinguished by its vision, its passion and its momentum,” Bouchat said. “These qualities are inimitable, and they’re what make RoadVantage the fastest-growing F&I provider in the market today.
“I’m pleased to be part of this team,” Bouchat added.
These additions come upon the completion of the company’s fourth consecutive year of rapid growth. RoadVantage added three regional offices on the East Coast, including Boston, Miami and Long Island, N.Y.
Amid this growth, RoadVantage insisted that the company still maintains its service levels with 97 percent of claims approved within eight minutes.
“With its innovative programs and commitment to service levels, RoadVantage is setting a new industry standard,” Mullen said. “I’m excited to join this team of seasoned industry leaders and to be part of the future in F&I.”
Earlier this year RoadVantage introduced True Coverage, an approach to F&I that’s aimed at reducing exclusions and simplifying contracts. More details can be found at www.roadvantage.com/true-coverage.
Also, RoadVantage recently rolled out what it pitched as a turnkey compliance management system to help dealers with compliance mandates from the Consumer Financial Protection Bureau. The company also boasts what it calls the Total Solution, a bundled product that can help drive profits for both retail sales and lease programs.
With those products in place, an enhanced leadership team and a larger office footprint, RoadVantage chief executive officer Garret Lacour described what all of the additions mean not only to the company but dealers, too.
“Dave, Phil and Sue Ann are valuable assets to the RoadVantage team as we continue our commitment to providing the best products and service in the industry,” Lacour said. “They bring almost 100 years of combined industry experience, insights and connections to our team, and we are thrilled to welcome them aboard.”
The Consumer Financial Protection Bureau and Department of Justice just took a big bite out of the F&I income Honda dealerships can generate through the financing of vehicle installment contracts by their captive.
CFPB and DOJ officials said on Tuesday that they resolved an action with American Honda Finance Corp. they believe will put new measures in place to address discretionary auto loan pricing and compensation practices.
The agencies indicated Honda’s past practices resulted in thousands of African-American, Hispanic, and Asian and Pacific Islander borrowers paying higher interest rates than white borrowers for their installment contracts, without regard to their creditworthiness.
As part of the order, officials said Honda will change its pricing and compensation system to substantially reduce dealer discretion and minimize the risks of discrimination, and will pay $24 million in restitution to affected borrowers.
According to the consent order, Honda’s captive will limit dealer participation to 125 basis points for installment contracts with terms of 60 months or less. For contracts longer than 60 months, the cap is set at 100 basis points.
Officials maintained that Honda permitted dealers to mark-up consumers’ interest rates as much as 2.25 percent for contracts with terms of five years or less, and 2 percent for contracts with longer terms.
The agencies explained the enforcement action is the result of a joint CFPB and DOJ investigation that began in April 2013. The agencies investigated Honda’s indirect auto lending activities’ compliance with the Equal Credit Opportunity Act, which prohibits creditors from discriminating against loan applicants in credit transactions on the basis of characteristics such as race and national origin.
The investigation concluded that Honda’s policies:
• Resulted in minority borrowers paying higher dealer markups: Honda violated the Equal Credit Opportunity Act by charging African-American, Hispanic, and Asian and Pacific Islander borrowers higher dealer markups for their auto contracts than non-Hispanic white borrowers. These markups were without regard to the creditworthiness of the borrowers.
• Injured thousands of minority borrowers: Honda’s discriminatory pricing and compensation structure meant thousands of minority borrowers from January 2011 through July 14, 2015 paid, on average, from $150 to over $250 more for their auto loans.
Reaction from Honda
In a statement posted on its website, American Honda Finance officials said their consent agreement with federal agencies, “shows our commitment to work together to be part of the solution and to establish the path forward that best supports our Honda and Acura customers and dealers with clear and convenient financing options.
“AHFC strongly opposes any form of discrimination, and we expect our dealers to uphold this principle as well. We firmly believe that our lending practices have been fair and transparent,” they continued.
“AHFC has a difference of opinion with the CFPB and the DOJ regarding the methodology used to make determinations about lending practices, but we nonetheless share a fundamental agreement in the importance of fair lending,” the officials went on to say.
Honda Finance didn’t mention the specific figures regarding dealer participation that the CFPB and DOJ did in the consent order. Rather, officials said, “In cooperation with the CFPB and the DOJ, AHFC will be working closely with our Honda and Acura dealers in proactively adjusting our pricing programs to continue to give our customers the ability to choose the loan that is best for supporting their purchase of Honda and Acura products.
“As part of this new program, AHFC will announce later this year adjustments to our caps for dealers in setting the rate for retail installment contracts lower than the present level,” they continued.
“We will be implementing this change in combination with other adjustments and modifiers in a way that continues to support our Honda and Acura dealers' present business compensation with a full array of financing options,” captive officials added.
American Honda Finance also pointed out that as a result of this settlement, no civil penalties have been assessed.
Along with establishing a $24 million fund that will be used to compensate customers identified by the CFPB and the DOJ, the captive indicated it will continue to enhance our long-standing commitment to support financial literacy education and ensure that the future generation of customers is well informed about the process of financing vehicles.
More details of enforcement action
Officials reiterated the Dodd-Frank Wall Street Reform and Consumer Protection Act, and federal fair lending laws, authorize the CFPB and DOJ to take action against creditors engaging in discrimination.
The CFPB’s order was filed on Tuesday as an administrative action, and DOJ’s proposed order was filed in the U.S. District Court for the Central District of California.
The agencies contend the measures provided in the orders will help ensure that discrimination does not increase the cost of auto loans for consumers on the basis of race and national origin.
Under the CFPB order, Honda must:
• Substantially reduce or eliminate entirely dealer discretion: Honda will reduce dealer discretion to mark-up the interest rate to only 1.25 percent above the buy rate for contracts with terms of 5 years or less, and 1 percent for auto loans with longer terms. Honda also has the option under the order to move to non-discretionary dealer compensation.
“The bureau did not assess penalties against Honda because of Honda’s responsible conduct, namely the proactive steps the company is taking that directly address the fair lending risk of discretionary pricing and compensation systems by substantially reducing or eliminating that discretion altogether,” CFPB officials said.
• Pay $24 million in damages for consumer harm: Officials said Honda will pay $24 million to a settlement fund that will go to affected African-American, Hispanic, and Asian and Pacific Islander borrowers whose auto loans were financed by the captive between January 2011 and Tuesday.
• Administer and distribute funds to victims: Officials said Honda, through American Honda Motor Co., will contact consumers, distribute the funds and ensure that affected borrowers receive compensation. Honda will make reports to the bureau regarding this victim compensation activity.
“The CFPB is committed to creating a fair marketplace for all consumers, and other auto lenders should take note of today’s action,” CFPB director Richard Cordray said. “Honda’s proactive decision to move to a new pricing and compensation system demonstrates industry leadership and represents a significant step towards protecting consumers from discrimination.”
The head of DOJ’s Civil Rights Division, principal deputy assistant attorney general Vanita Gupta, also reacted to Tuesday’s development.
“We commend Honda for its leadership in agreeing to impose lower caps on discretionary markups and for its commitment to treating all of its customers fairly without regard to race or national origin,” Gupta said.
“We recognize that dealerships perform a valuable service in connecting customers with lenders and that they should be fairly compensated for that service,” Gupta continued. “We believe that Honda’s new compensation system balances fair compensation for dealers and fair lending for consumers.
“We hope that Honda’s leadership will spur the rest of the industry to constrain dealer markup to address discriminatory pricing,” Gupta went on to say.
In March 2013, the CFPB pointed out that it issued a bulletin explaining that it would hold indirect auto finance accountable for “unlawful discriminatory” pricing. Bureau officials reiterated the bulletin also made recommendations for how indirect auto finance companies could ensure that they were operating in compliance with fair lending laws.
Last September, the bureau also issued an edition of supervisory highlights that explained that the bureau’s supervisory experience suggests that significantly limiting discretionary pricing adjustments may reduce or effectively eliminate pricing disparities.
“Substantial limits on discretionary pricing like those imposed by today’s order can address the type of fair lending risk identified in the CFPB’s bulletin and supervisory highlights,” officials said.
Officials mentioned Tuesday’s action is part of a larger joint effort between the CFPB and DOJ to address discrimination in the indirect auto lending market. In December 2013, the CFPB and DOJ took an action against Ally Financial and Ally Bank that ordered Ally to pay $80 million in consumer restitution and an $18 million civil penalty.
While the Office of the Comptroller of the Currency acknowledged vehicle installment contract delinquencies are are at “manageable” levels now, FICO’s analytic team recently offered a pair of recommendations to help finance companies protect profitability in case those conditions deteriorate.
The first recommendation FICO shared in a recent blog post was how finance companies should identify customers likely to become delinquent and take preemptive action.
“By taking a proactive and analytic approach to customer management, auto financing sources can prepare for the likelihood that certain customers may go delinquent and require greater attention,” FICO said.
“Understanding who these customers are, based on their behavior and risk profile, and then taking informed actions to support the relationship can be mutually beneficial,” analysts continued.
“Financing sources will see increased profit with reduced risk. Borrowers will feel supported and avoid a negative brand experience,” they added.
Next, FICO also suggested that finance companies leverage collection treatments that maximize the value of resources and other operational expenses.
“Predictive analytics can be used to identify the most effective recovery programs and get debtors back on the road to repayment,” FICO said.
“Applying risk-based strategies has proven successful to increase the amounts collected; they also keep operating costs down by proportionally focusing system treatments — including letters and collector staff efforts — on rewarding activities,” analysts continued.
“Analytic segmentation can identify customers likely to self-cure so that costly resources remain focused on accounts that will benefit from action,” they went on to say.
More recommendations and commentary from FICO can be found here.
Cox Automotive chief economist Tom Webb didn’t reference the Federal Reserve’s revamped consumer credit report that includes more details about auto financing when he conducted his quarterly conference call this week.
But the metrics the Fed reported probably didn’t provide Webb with much evidence to alter his assessment about lengthening new-vehicle installment contracts.
The Fed indicated the average new-car deal in March contained terms lasting 65 months, the same duration as the first quarter of this year and the fourth quarter of last year.
The Fed added in its report that officials said covers most captive and non-captive finance companies that the average amount financed in these new-model contracts was $27,272 in March, which was flat compared with the first-quarter reading and $517 higher than the fourth-quarter figure.
Furthermore, the Fed pinpointed the average APR on contracts for new vehicles at 5.2 percent in March; again the same reading as Q1.
In his Q&A segment that also delved into where wholesale prices might be headed, Webb answered questions about new-vehicle sales and the financing environment that helped the industry sell new cars and light-duty trucks at a seasonally adjusted annual rate (SAAR) of 17.1 million in June.
“Longer terms loans,” Webb said as he paused for a couple seconds before continuing with, “I have a lot of thoughts about that. Personally, I don’t like them. I don’t think the lenders are going to get too burned on them. The underwriting is still pretty good. People are paying their loans.
“Customers probably won’t hold the car until the note is paid off so lengthening the trade cycle, I’m not too sure what it does for that,” Webb continued.
Webb then followed up with the part about these growing contract terms that solidified his opinion.
“What bothers me about them most is it probably hurts customer satisfaction in the long-run,” he said.
“New-vehicle buyers want to trade out on a relatively short period of time,” Webb continued. “Wholesale prices obviously are going to show some weakness. There are going to be people who put themselves into a long-term loan who are going to find it rather painful to get out into another new vehicle. They’re going to have little equity, no equity or negative equity.”
All of those vehicle installment contracts with terms of 72 months or longer are prompting one of the top federal regulators of commercial banks to keep a close eye on auto financing.
The latest report from the Office of the Comptroller of the Currency indicated that agency officials continue “to closely monitor underwriting practices and loan structures.” They made the statement as part of the 41-page semiannual risk perspective by the OCC’s national risk committee.
The OCC based its assessment on data through the end of last year, which showed total outstanding balances in the industry’s portfolio reached $956 billion, increasing 1.4 percent for the quarter and 8.8 percent for the year. The OCC acknowledged outstanding balances have grown for 17 straight quarters, a trend that began in the third quarter of 2010.
Officials pointed out auto origination volumes at commercial banks followed a similar pattern with a 9.5-percent increase during 2014 and a “long-term pattern mirroring the industry.” To date, they added delinquency and loss rates remain within “manageable” levels, aided by declining unemployment, low gasoline prices and “resilient” used-vehicle prices.
While installment contract performance currently remains “reasonable,” the OCC discussed what negatives might be percolating within the industry.
“Extended rapid growth is difficult to maintain and can sometimes mask early signs of weakening credit quality,” officials said in the report. “Too much emphasis on monthly payment management and volatile collateral values can increase risk, and this often occurs gradually until the loan structures become imprudent.
“Signs of movement in this direction are evident, as lenders offer loans with larger balances, higher advance rates and longer repayment terms,” they continued. “Each on its own may be manageable depending on the particular case, but combining the factors substantially increases risk.”
As dealer finance office managers and finance company underwriters often see, those contract terms regularly need to be stretched to place the buyer into an affordable monthly payment. The OCC reiterated this practice can increase risk to banks and borrowers.
The agency mentioned 60 percent of auto loans originated in the fourth quarter of 2014 had a term of 72 months or longer.
“Extended terms are becoming the norm rather than the exception and need to be carefully managed,” officials said.
The OCC noted in its reported collateral advance rates are a concern, too.
The agency referenced Experian Automotive data on origination loan-to-value (LTV) ratios, which showed average advance rates were “well above” the value of the vehicles financed.
In the fourth quarter of 2014, the average LTV for used vehicle contracts was 137 percent. Moreover, advance rates for borrowers across the credit spectrum are trending up, with used vehicle LTVs for subprime borrowers (individuals with credit scores 620) averaging nearly 150 percent at the end of 2014.
“Sales of add-on products such as maintenance agreements, extended warranties, and gap insurance are often financed at origination. These add-on products in combination with debt rolled over from existing auto loans contribute to the aggressive advance rates,” the OCC said.
The regulator closed its report segment focused on the auto space by projecting how commercial banks might act going forward.
“As in the mortgage markets, the OCC expects banks to fully consider cycles and trends in the auto markets and respond in a prudent and sound manner,” officials said.
“Underwriting standards and product structures established in times of low interest rates and unusually high used car values may not prove prudent when conditions normalize or during times of stress,” they continued. “Competitive factors are important realities, but lenders also need to consider the results objectively and ensure that loan terms, underwriting standards, and portfolio concentrations remain within established and prudent risk appetite levels.”
The entire OCC risk report can be downloaded here.
During the recent National Independent Automobile Dealers Convention, Equifax expanded its partnership with 700 Credit to offer dealers a more advanced level of income and employment verification capabilities.
Officials recapped that Equifax income and employment solutions are powered by The Work Number, a Fair Credit Reporting Act (FCRA) compliant database. The Work Number can provide payroll-direct income and employment information to dealerships when authorized by the consumer, and in compliance with FCRA regulations.
An expanded application to 700 Credit’s existing verification solution can allow delivery of information earlier in the sales process in order to help dealers extend the right deal to the right buyer.
Additionally, these new capabilities can help provide a higher level of detail to enable dealers to more readily satisfy lender requirements.
The advanced income and employment verification solutions can enable dealerships to maximize revenue opportunities, remove obstacles in order to provide consumers with the best possible customer experience and reduce the chances of customers or employees committing fraud.
Diana Rodriquez is the underwriting manager for Best Car Buys in Denver. Rodriquez described how the enhanced tools helped at her store.
“The employment verification product has enabled our dealership to verify employment in a more efficient way. We no longer have to wait to hear back from the employers’ HR or payroll department to get verification of employment for final processing of our applicant’s loan,” she said.
An improved experience not only for dealers like Rodriquez but also for buyers, too, is the objective Equifax wants to achieve, according to Angelica Jeffreys, who is the company’s vice president and dealer leader.
“Our updated income and employment verification solutions will help to level the playing field for F&I managers as they work to match their customers with the most appropriate loans for their needs,” Jeffreys said.
“Having a real-time solution that instantly provides proof of income and employment will also help to avoid sending customers home for their paystubs, which will reduce transaction time — ultimately improving customer satisfaction,” she went on to say.
Ken Hill, managing director of 700 Credit, also touched on another element about how this enhanced relationship can help dealers.
“In addition to worrying about obstacles that pertain to lenders, the dealers we work with also often tell us that a big challenge they face has to do with fraud,” Hill said.
“The income and employment solutions we’re offering with Equifax will help to drastically reduce the risk of consumers providing false paystubs, and will help to avoid the risk of dealership employees falsifying income or employment on consumer credit applications in order to get the deal done,” Hill continued.
For more information about Equifax income and employment solutions for auto, visit https://www.equifax.com/business/automotive.
In a move targeted at the subprime market, Spireon on Wednesday formed a strategic partnership with P360, a provider of loan-level data management and analytics. The companies highlighted the collaboration will provide a comprehensive portfolio solution to help auto finance companies to identify, calculate and monitor risk before it affects their business.
By coupling P360’s data-driven Mosaic loan intelligence platform with Spireon’s Goldstar GPS vehicle tracking, officials explained that finance companies can leverage business intelligence to significantly reduce risk and safely lend to previously overlooked borrowers.
By increasing penetration and yield to customers in lower credit tiers, the companies projected that finance companies can expand their overall portfolio production and performance, deploying more capital and increasing loan originations.
Meanwhile, Spireon and P360 claimed that institutions such as credit unions and regional banks can help their members build and improve their credit by providing better loan rates than other subprime finance companies.
“As the auto finance industry evolves, our customers are demanding more sophisticated tools to measure their risk and improve their ability to expand their portfolios,” said David Meyer, executive vice president of sales and services for Spireon’s automotive solutions group.
“Spireon is pleased to partner with P360 to be the first to offer tools that can improve decision making, increase return on capital, and streamline risk processes,” Meyer continued.
P360 president and chief executive officer Carl Meiswinkel added, “P360 and Spireon’s combined technologies will allow credit unions and other financial institutions drive better business outcomes by offering an unprecedented combination of live modeling tools for underserved consumer markets.”
If buyers keep their vehicles for the duration of the installment contract, dealerships and finance companies likely won’t see these consumers again for another purchase until 2020 or possibly beyond — an assertion stemming from the record-setting term metrics Experian Automotive reported on Monday.
Analysts determined longer-term loans for both new and used vehicles are on the rise. According to the latest State of the Automotive Finance Market report, the average loan term for new and used vehicles originated during the first-quarter increased by one month, reaching new all-time highs of 67 and 62 months, respectively.
Findings from the report also showed that longer loans — those contracts with terms lasting 73 to 84 months — accounted for a record-setting 29.5 percent of all new vehicles financed, marking an 18.6 percent rise above Q1 2014 and the highest percentage on record since Experian began publically tracking this data in 2006.
Long-term used-vehicle loans also broke records, with loan terms of 73 to 84 months, reaching 16 percent in Q1 2015, rising from 12.94 percent the previous year — also the highest on record.
“While longer term loans are growing, they do not necessarily represent an ominous sign for the market," said Melinda Zabritski, Experian’s senior director of automotive finance and a keynote speaker for the SubPrime Forum later this year during Used Car Week.
“Most longer-term loans help consumers keep monthly payments manageable, while allowing them to purchase the vehicles they need without having to break the bank,” Zabritski said. “However, it is critical for consumers to understand that if they take a long-term loan, they need to keep the car longer or could face negative equity should they choose to trade it in after only a few years.”
Experian pointed out the average amount financed and the average monthly payment for a new vehicle also increased to record heights.
The average new-vehicle loan was $28,711 in Q1 2015, compared to $27,612 in Q1 2014. The average monthly payment for new vehicles also rose, moving from $474 in Q1 2014 to $488 in Q1 2015.
Additionally, analysts reported leasing continued to increase in popularity during the quarter, jumping from 30.22 percent of all new vehicles financed in Q1 2014 to a record high of 31.46 percent in Q1 2015.
During the same time period, the average monthly lease payment dropped to $405, down from $412 the previous year.
Furthermore, leasing credit loosened, as the average new vehicle lessee had a credit score of 718 in Q1 2015, down from 721 the previous year.
“Increases in vehicle financing are signs of a strong automotive market,” Zabritski said.
“By gaining a deeper understanding of current financing trends, lenders are able to stay competitive and better meet the needs of the marketplace, while consumers can use the data to become more educated on the different vehicle financing options and make a more informed purchasing decision,” she went on to say.
Zabritski mentioned a trio of other findings from Experian’s latest report, including:
— The average credit score for a new-vehicle loan dropped slightly, going from 714 in Q1 2014 to 713 in Q1 2015. The average used vehicle score moved slightly higher, from 641 in Q1 2014 to 643 in Q1 2015.
— The average used-vehicle loan was $18,213 in Q4 2015, up from $17,927 in Q4 2014.
— The average interest rate for new vehicles was 4.71 percent in Q1 2015, up from 4.54 percent in Q1 2014. Similarly, the average interest rate for used vehicles increased from 9.01 percent in Q1 2014 to 9.17 percent in Q1 2015.
While outlining the five service offerings that will result from the development, executives from defi SOLUTIONS on Friday announced the acquisition of OpenRule Systems APM (Application Process Manager). They indicated the two companies will combine to create an even stronger technology team to serve finance companies seeking flexible and affordable loan origination technology.
According to defi SOLUTIONS chief executive officer and founder Stephanie Alsbrooks, the company plans to integrate the features and functions of APM quickly into a single, powerful system. The new combined defi SOLUTIONS system will offer finance companies:
—Automatic upgrades and key feature enhancements
—Increased support from a combined and larger defi team
—Fully configurable settings to allow for easy changes to programs, processes and integrations
—Quick access to more than 30 pre-integrated credit bureaus, valuation services and servicing providers
—Access to alternative credit data offered via existing integrations with ID Analytics, FactorTrust, TransUnion, CreditSmarts and more
“defi SOLUTIONS and OpenRule were founded with the same goal in mind, to provide lenders with a level of freedom they don’t have with other LOS providers,” Alsbrooks said. “By combining forces with OpenRule, defi can offer even more functionality to current and future customers.”
The OpenRule team has re-located to the defi headquarters, also located in Grapevine, Texas. The combined teams will be on the road for the next several weeks, meeting with customers and completing plans for integration. One of those stops is the National Automotive Finance Association’s 19th annual Non-Prime Auto Financing Conference on May 27 through May 29 in Plano, Texas.
“We look forward to working with the OpenRule team to integrate the many great features of APM that their customers enjoy today,” Alsbrooks said. “During this initial migration to the defi family, we want OpenRule customers to rest assured that we are focused on their needs and coming together in a seamless fashion so they can even more easily overcome the challenges they face when attempting to balance technology, compliance, and risk operations.”
Previously, Kevin Perkins was technology director at OpenRule APM. Now Perkins will serve in the same role with defi SOLUTIONS.
“We see joining the defi team as an opportunity to advance our functionality and scalability through a hosted technology solution while still offering all the critical support and functionality our customers count on with APM,” Perkins said.
