OPEN LENDING PARTNERS WITH CUDL TO BRING LENDERS PROTECTION PROGRAM® TO CREDIT UNIONS
AUSTIN, Texas -- February 17, 2011 Open Lending, LLC, provider of the Lenders Protection Program®, announced today that it has completed work with CUDL to interface its enhanced Program underwriting platform with CUDL’s indirect auto loan origination platforms. The Lenders Protection Program® is a sophisticated risk-based pricing and default insurance program that drives higher loan volume, higher portfolio yields, and insures credit unions against losses on new and used automobile loans funded through direct or indirect lending channels.
The integration allows CUDL’s 940 credit union partners to easily and automatically submit and underwrite loan applications for Lenders Protection Program® coverage from within the CUDL workflow. Credit unions can use the interface to better capitalize on their existing application flow and approve a greater number of loans that would otherwise be denied or conditioned under standard lending guidelines. The Lenders Protection Program® helps lenders increase loan volume and serve a wider range of borrowers, while achieving higher yields and managing risk effectively.
The program combines a risk management tool and risk-based pricing with default insurance coverage to allow credit unions to safely price, approve and fund more near-prime automobile loans. The program features loan terms up to 72 months, loan-to-value ratios up to 125% (not including additional loan products), vehicles up to 7 model years old, and eligibility for borrowers with credit scores as low as 580. For most credit unions, these program features will significantly expand risk-based lending guidelines, reduce or eliminate down payment requirements, extend loan terms and allow the credit union to serve more members.
“Integrating Open Lending’s Lenders Protection Program provides an important new component to our lending platform,” said Brent Hollingsworth, national director, strategic alliances at CUDL. “Providing our credit union partners with the added value and benefits that this exciting program offers will help them retain more member auto loans, reduce auto loan risk, and advance their efforts in attaining higher portfolio yields.”
With the Lenders Protection Program®, credit unions always maintain control of credit decisions, loan servicing and collections, portfolio yield targets and risk-based pricing configurations. These critical functions are never delegated to a third party.
Since 2004, over $1.3 billion in credit union auto loans have been underwritten and insured through the Lenders Protection Program®. In August 2010, Open Lending, Inc. chose to partner with the AmTrust Group of insurance carriers (AmTrust Group)as it introduced the new and improved Lenders Protection Program®. The AmTrust Group, with over $3 billion in assets, is a multi-national provider of property and casualty insurance and its principal underwriting subsidiaries are each rated “A” (Excellent) by A.M. Best.
“In today’s market, many credit unions are experiencing flat or declining loan volume, shrinking interest margins and decreasing net income,” said John Flynn, CEO of Open Lending, Inc. “The Lenders Protection Program, interfaced within the CUDL platform, allows credit unions to safely buy more auto loans, serve more members and strengthen dealer relationships that will result in more volume and higher yields.”
Credit unions currently using the CUDL platform can integrate with the Lenders Protection Program® with very little effort. The program is fast to implement, with zero implementation or maintenance costs, and no software or hardware to purchase.
# # #
Based in Ontario, California, CUDL® (a CU Direct Corporation flagship brand) is the leader in point-of-purchase and indirect lending services for the credit union industry. As a Credit Union-owned Service Organization, CUDL develops custom applications, training and marketing programs to help credit unions achieve their indirect vehicle lending goals.
More than 940 credit unions and 6,900 dealerships nationwide rely on CUDL’s national lending network to better serve members’ vehicle shopping needs and drive member financing at the point-of-purchase. For more information about CUDL visit www.cudl.com and www.cudlautosmart.com.
About Open Lending, LLC
Founded in 2000, Open Lending is located in Austin, Texas. The company specializes in providing web-based pricing and underwriting technology that helps lenders approve auto loans for borrowers who don't meet typical underwriting standards. Open Lending's flagship product, the Lenders Protection Program®, provides a software platform that integrates automated loan default insurance underwriting, risk-based loan pricing and portfolio yield targets with indemnity insurance provided by a highly rated insurance carrier.