GDNAuto, CU Lending Strike Deal to Help Credit Unions Grow Auto Portfolios
LOS ANGELES and ALAMO, Calif. — Global Debt Network Automotive and CU Lending Solutions have formed a partnership that can allow credit unions to expand their reach into the auto lending business and manage their portfolio risk more efficiently.
Basically, the partnership between the two companies is designed to let credit unions tap into the growing non-prime segments. Moreover, it allows credit unions to buy and sell loan portfolios beyond their local area.
In essence, CU Lending Solutions works with credit unions and finance companies to help them develop, build and operate auto lending businesses.
Meanwhile, GDNAuto, the online loan portfolio marketplace from Global Debt Network Automotive, allows dealers, banks, credit unions, hedge funds and other financial institutions to securely evaluate, price, sell and purchase asset-backed debt.
"As more Americans seek out used vehicles, dealerships need new financing partners to help them serve a much larger universe of customers and offer a far more diverse set of loan products than they have in the past," stated Mike Sheridan, founder and president of GDNAuto.
"At the same time, credit unions and finance companies are discovering there are ways they can serve this population and do so quite efficiently and profitably by selling their seasoned loans or balancing their risk by purchasing loans from other geographies," he continued. "Global Debt Network is a convenient online marketplace where dealerships and lenders and investors can turn to help meet their business goals."
Frank Mercer, president and chief executive officer of CU Lending Solutions: "Increasingly, credit unions are more comfortable reaching out to serve this population of borrowers because they have access to an array of tools, services and resources that help them connect with new dealerships and better manage the financial and operational risk associated with indirect, non-prime loan portfolios.
"This partnership extends the market reach of both companies and provides auto dealers and lenders with an efficient way to originate more loans and convert the seasoned loans they have originated into cash to fund their operations," he added.