Consumer Portfolio Services is leveraging technology to improve both decisioning on applications that arrive from dealers as well as the finance company’s evaluation of those stores where those potential originations first surface.
CPS shared in a message with SubPrime Auto Finance News that this month the company has been “stepping up” automated verifications of consumer loan information as part of an effort to accelerate the contract funding process for dealers and to improve overall processing costs.
“The information and tools to access income, job time and residency for our loan customers are becoming more readily available,” said Teri Robinson, who is senior vice president of originations for CPS.
“We’ve seen a significant improvement in data accuracy and availability over the last few years. Improvement in data gathering, data feed compatibility and internal enhancements to our processing systems are allowing us to move forward with this initiative,” Robinson continued.
CPS pointed out that a major initiative it has been orchestrating so far this year is to simplify and speed up the funding process while maintaining “verification discipline” for its contract purchases.
CPS emphasized that it is working to reduce “friction” across its entire origination process to “more effectively compete for loan volume in a crowded market place.”
Meanwhile, CPS also recently launched an improved dealer grading system.
“Our new generation dealer grading system allows the company to review, evaluate and weigh a group five performance metrics for each dealer. These performance metrics give us a very good picture of which dealers are providing the company with the best business relationship” said Chris Terry, who is senior vice president of risk management and systems for CPS.
The subprime auto finance company was founded in 1991 and purchases contracts from franchised and independent dealers in 44 states.
“As you would guess, it’s a big job objectively managing close to 10,000 dealer relationships. Our sales and origination teams need this data to give us a leg up in a crowded market place,” Terry added.
“We use this updated dealer grading system as a component in our risk pricing model — better dealers receive the benefit of lower fees, lower APR and added flexibility on their loan structures,” Terry went on to say.