Open Lending partners with Point Predictive to boost underwriting in non-prime space
Open Lending recently formed a partnership with Point Predictive
Designed to bring enhanced speed, security and performance to auto finance companies that want to book near-prime and non-prime paper, the service providers highlighted that the partnership integrates the capabilities of Point Predictive’s new IEValidate solution and IncomePass solution into Open Lending’s Lenders Protection decisioning engine.
The companies acknowledged unreliable applicant income information and proof of income (POI) stipulations can often slow down the approval process and can lead to lower closure ratios on auto finance applications.
But the Point Predictive integration now gives Open Lending customers a way to quickly validate income and employment.
Generally, for applicants with a higher credit score, the system will deliver POI verification without relying on easy-to-forge paystubs, enabling clients to:
—Increase contract conversion rates.
—Enable up to 70% of application decisioning without POI stipulations or manual intervention.
—Instantly detect 60%-80% of inflated incomes.
—Boost look-to-book and loan capture rates by automating POI and removing the friction of POI stipulations.
“We’re proud to have established this partnership with Open Lending to offer their customers the most effective income and employment validation solutions on the market,” Point Predictive CEO Tim Grace said in a news release.
“With IEValidate and IncomePass, lenders do not need to require or provide onerous income and employment documentation to widen their lending reach,” Grace continued. “IEValidate offers the best coverage and hit rates of any solution, an affordable cost, and zero friction for borrowers and lenders. By removing the friction from the process, lenders can increase their conversion rates and safely expand their book of business.
“The teamwork between the companies has already enabled IEValidate across a long list of lenders,” he added.
IEValidate and IncomePass are built seamlessly into Open Lending’s existing decisioning engine, enabling its finance company customers to safely and securely deliver approvals in just five seconds.
With reduced stipulations and increased capture, Open Lending CEO Chuck Jehl said the integration makes it simpler to bring financing opportunities to underserved near- and non-prime consumers.
“For our lender customers, using paystubs and tax forms to validate income often causes delays and drives away borrowers,” Jehl said.
“By partnering with Point Predictive, we’re giving Lenders Protection users a smarter, more automated, and more customizable solution that speeds up the process, cuts costs, and provides more accurate assessments — ultimately making the loan application approval process more efficient for both lenders and borrowers,” he continued. “I am excited about this partnership and our ongoing commitment to driving innovative enhancements for our customers.”