VINtek Can Help Lenders Gain Current LTV Measurements
PHILADELPHIA — VINtek, a provider of automotive collateral management services and direct auto finance solutions for banks, credit unions and other automotive finance lenders, announced an increase in demand for its AUTOval portfolio optimization analysis.
Apparently, more auto lenders seeking to determine the underlying collateral value of auto loan portfolios and how they compare with loan balance amounts, officials indicated.
After determining the loan-to-value ratio of a loan, lenders are using this information in conjunction with other indicators, such as borrower payment frequency and FICO score to assist them in predicting delinquency rates.
Some lenders are using the LTV analysis to identify accounts for possible internal refinancing in order to avoid delinquencies.
To perform a portfolio analysis, VINtek requires only an account number and VIN of the vehicle serving as collateral from the lender. The lender accumulates the data in a file and sends it to VINtek.
The company can then decode the VIN for each account and return standardized vehicle descriptions of the automotive collateral along with current wholesale value of the vehicle based upon wholesale auction sales data.
The lender can compare the returned collateral values against the current loan balance to determine the LTV as of the analysis date.
The service can be provided as frequently as the lender desires, and there is no limit to the number of accounts that can be analyzed, executives explained. For example, one top 10 auto lender performs LTV analysis on approximately 1.2 million accounts each month. VINtek recently analyzed 500,000 accounts and provided same-day response for another significant automotive financier, as well.
"With the volatility of vehicle values, especially for SUVs and trucks, auto lenders need to have an accurate view of the loan-to-value ratio of the loans on their books," said Larry Highbloom, president of VINtek.
"Having this knowledge gives auto lenders the power to proactively make smart decisions to prevent costly delinquencies. They can work with individuals to modify their loan terms once they have identified borrowers who are, or are in danger of, tripping certain risk metrics," he added.
For more information, visit www.vintek.com.