Open Lending’s Close, Non-Preferred 84-Month Auto Loans Help Credit Unions Meet Rising Auto Prices
AUSTIN, Texas–(BUSINESS WIRE)–Open Lending Corporation (NASDAQ: LPRO) (“Open Lending” or “the Company”), an industry pioneer in loan activation and risk analytics solutions for financial institutions, announced today it will offer its customers the ability to offer loans on 84-month terms for new and used vehicles up to four years old, with less than 60,000 miles. This is an increase of nine months from its previous maximum duration. Additionally, Open Lending will now offer its clients the option to offer a higher PTI (payment on income) ratio for indirect loans, increasing full approvals and higher funded ratios due to a decrease in the number of counter-offers. Both offerings will help financial institutions increase loan volume, minimize risk and increase return on assets.
“Inflation impacts everything we buy, including the cost of owning a car,” said John Flynn, Open Lending president and CEO. “More than a third of applications asked for terms longer than 72 months in 2021, so we now offer the option to provide higher loan amounts, longer loan terms and a higher PTI ratio for indirect loans. Our motivation and mission is to help our customers enable more of their close and unprivileged members to achieve their dreams of vehicle ownership during this uncertain time, and in doing so, to also help our customers unlock new income opportunities.
According to Dealertrack Credit Availability Index, the All-Loans Index has fallen for three straight months, and getting car credit has become increasingly difficult to obtain since hitting a record high in April 2022. However, credit unions are still wear exceptionally well. from Experian”State of the car finance marketThe report showed credit unions produced 25.8% of loans and leases from lenders in the three months to June 30, up from 18.3% a year earlier and 22.1% in the first. quarter of this year.
The experience of Open Lending client and CapEd Credit Union leader Jeremy Sankwich is a testament to how credit unions continue to drive growth by leveraging the Lenders Protection™ program. “Partnering with Open Lending allows us to provide more auto loan opportunities to near and unpreferred or emerging members, while leveraging the instant decision-making efficiencies of Lenders Protection,” says Vice-President. President of Consumer Lending, “In the midst of a volatile economic climate, we are increasing lending, increasing yields and helping a wider variety of members access credit while mitigating credit risk through credit insurance. default of Open Lending.
Lenders Protection™ was launched in 2003 in the credit union market. In the years since, financial institutions have used Lenders Protection™ consolidated insurance and analytics solution to originate and insure more than $16 billion in auto loans. More than 400 financial institutions have leveraged the easy-to-use program to efficiently create close, non-preferred auto loans, drive loan growth, and increase loan portfolio returns. To learn more about Open Lending and its Lenders Protection™ program or schedule a demo, click here.
About Open Loan
Open Lending (NASDAQ: LPRO) provides loan analytics, risk-based pricing, risk modeling and default insurance to auto lenders across the United States. For more than 20 years, they have enabled financial institutions to build profitable auto loan portfolios by saying “yes” to more auto loans. For more information, please visit www.openlending.com.