AUSTIN, Texas — In developments that likely will affect many
repossession agencies, lenders' recovery departments and repo units coming down
the lanes, the American Recovery Association and National Finance Adjusters
merged into one trade association this week.

Officials explained the new trade association will move
forward under the name of the American Recovery Association.

As part of the comprehensive agreement, American Recovery
Management Solutions (ARMS) joined with Relliance to form what officials believe
is the largest industry-owned forwarding and facilitation cooperative in the
United States.

The co-op will be named National Finance Adjusters.

Officials said the new trade association, ARA, will focus on
compliance training and monitoring, education and training through
certification programs, legal representation and lobbying, promotion of member
and lender direct relationships, networking, and a captive insurance program.

Meanwhile, they indicated NFA, the co-op, will focus on
offering the lenders a viable alternative to the standard forwarding model
while regaining market share lost to the national forwarding companies. In
addition to a centralized assignment, communication and accounting and risk
mitigation, NFA pointed out lenders will have the option of communicating
directly with the agent if they choose.

The home office of the newly formed ARA will remain in
Dallas, and the corporate office of the co-op will be located in Scottsdale,
Ariz.

Membership into ARA will be required to join the NFA co-op,
according to today's announcement.

Officials noted the first order of business of this combined
entity will be the announcement of a new compliance-monitoring platform that
will serve the membership.

As the Consumer Financial Protection Bureau continues to
"raise the bar on the lenders and their hiring of third-party servicers," NFA
president Jerry Wilson stressed this platform will be the most important
achievement for members and the industry.

"Members of both associations, along with lending and
recovery industry professionals, have long asked for this to happen and I am
proud to be a part of this monumental and historic occasion," Wilson said. "The
history of these two associations are so intertwined that it makes the merger
seamless. In addition, the merger of ARMS and Relliance into one co-op is a
very important part of this agreement."

Commenting on the announcement, ARA president Mary Jane
Hogan said, "We are proud to take this step to create an organization that will
concentrate on education, training and compliance monitoring, which is badly
needed in today's challenging environment.

"ARMS was created to offer clients a single contract and
billing source, so ARA members could receive the maximum amount of revenue on
an assignment. As we move forward, the new NFA will continue to fulfill this,"
Hogan went on to say.

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