CHICAGO — TransUnion developed what it called an innovative
risk assessment model designed to help auto lenders evaluate the potential for
future loan delinquency based on the history of the vehicle used as collateral.

Officials highlighted that they developed the TransUnion
Vehicle History Score in partnership with Carfax, using vehicle-specific
information to help lenders improve risk segmentation.

"The strategic partnership between TransUnion and Carfax
gives lenders a new, unique view into the default risk of an auto loan," said
Jason Laky, vice president of product strategy in TransUnion's financial
services business unit.

"The TransUnion Vehicle History Score represents a
step-change improvement over traditional asset risk assessment in auto finance,
such as wholesale book value, because the model uses Carfax's unparalleled
vehicle-specific data in combination with TransUnion's world-class risk
modeling expertise," Laky continued.

The TransUnion Vehicle History Score is designed to predict
the credit risk of an auto loan using information collected by Carfax over the
operating life of the vehicle

 Using only the vehicle
identification number (VIN), officials explained Carfax can transmit vehicle
history data to TransUnion, which forms the basis of the TransUnion Vehicle
History Score. The score returns a value of 100 to 999, corresponding to a rank-ordering
of the propensity for default on a loan using the vehicle as collateral.

Because it does not use consumer information, TransUnion
insisted the Vehicle History Score can give an alternative view of risk not
readily available to auto lenders today.

Used in conjunction with traditional risk models, finance
organizations can refine their approval and pricing strategies to compete more
effectively for originations. The score can also be refreshed after origination
for a periodic collateral quality assessment and to support remarketing
decisions.

"Carfax has always helped auto lenders assess the value of
their collateral, and this new TransUnion Vehicle History Score makes that
concept even more actionable," said David Lackey, general manager of the Carfax
Banking & Insurance Group.

"Based upon lender feedback, we fully expect that the
Vehicle History Score will become a standard tool for measuring and managing
collateral risk in automotive finance," Lackey went on to say.

To learn more about the TransUnion Vehicle History Score
powered by Carfax, contact your TransUnion sales representative or Sara
Drescher at (312) 466-6434.

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