HOUSTON — Auto Financial Group, an online provider of residual-based financing products for credit unions, recently announced it has signed an agreement with Frankenmuth Credit Union, a Michigan-based institution.

Executives explained the agreement means FCU can offer AFG's DrivingSense as both a direct and indirect lending option. They noted that DrivingSense is a financing product that can provide the lease-like benefits of a balloon loan to credit unions and their members. Furthermore, they said the program can allow credit unions to "build" a vehicle for their members, compare payment terms with conventional loans, and offer their members lower payments.

FCU handles more than 21,000 members across the Great Lakes Bay Region with more than $197 million in assets and $169 million in loans. FCU opened its first branch opened in 1964 and now employs about 100 people.

"DrivingSense appealed to us as something totally different than most of what's out there," stated Greg Wischmeyer, vice president of lending at FCU.

"It completely fits the credit union mantra of ‘people helping people' and is a very affordable program — especially for our members who are looking at higher-priced cars," Wischmeyer highlighted.

AFG president Richard Epley shared his reaction to the company's new relationship with FCU.

"We are excited to be working with FCU and expanding our presence in Michigan," Epley noted.

"We look forward to providing their credit union members in this part of the state with lower payments and to helping train local auto dealers in the program," he concluded.