VINtek Introduces Dealer Monitoring Program for Lenders
ORLANDO, Fla. — Philadelphia-based VINtek, a provider of automotive collateral management services and direct auto finance solutions for banks, credit unions and other auto finance lenders, announced the launch of its Dealer Monitoring Program.
The new offering is a risk management program for lenders that perfects liens from auto dealers, officials said.
The Dealer Monitoring Program can help auto finance providers avoid potential losses due to title exceptions from the liens they fund through their network of dealers. Prior to funding a dealer after a loan is approved, an indirect lender can use the Dealer Monitoring Program to ensure that the lien will be perfected.
The program enables funding of dealers within a day or two of approval, but with increased risk management benefits for lenders, according to the company.
Fees for the program are variable and can be passed onto the borrower or dealers, resulting in virtually no cost to the lender. VINtek's program scales to meet lender volume and also provides all lien perfection documentation from dealers in an imaged form to the lender for viewing and electronic storage.
"The Dealer Monitoring Program reduces and prevents the accumulation of unperfected liens for auto finance lenders of all sizes. Our process also protects indirect lenders from situations where dealers are closing their doors due to insolvency, yet the lender may be financing a consumer vehicle for purchase with a pre-existing lien that the dealer has not satisfied," said Larry Highbloom, president of VINtek.
"Using a trusted third-party partner to review and monitor lien perfection documentation reduces the need to chase down dealers post-funding for liens or titles and enables lenders to devote staff to other areas of their operations," he concluded.