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Blanket Policy or CPI? Which Is Right For Your Portfolio?

The two options are compared to help you determine which is best for your auto portfolio. Discover which one choice is the surest, fairest way to insure your loan portfolio against losses. See which option offers the greatest value and efficiency, flexibility, manageability and reduced risk while sustaining positive borrower relationships.

Read more here.
What Is Collateral Protection And Why You Need it.

A frank discussion of what differentiates Collateral Protection Insurance (CPI) from private auto insurance, how it protects lenders against losses, improves portfolio expense predictability and provides lenders with a true competitive edge.

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State National Companies is one of the nation's first providers of Collateral Protection Insurance and is the only carrier specializing in CPI exclusively. The company has been creating customized CPI programs specifically for auto lenders for over 40 years. Its programs have been proven to safeguard lender portfolios against loan loss while providing the protection needed to expand them. As a single-source agent, administrator, tracker and underwriter, State National can deliver superior control and better communication and response. The company's expertise, fast and fair claims settlement, unparalleled service and support, precise insurance tracking technology and financial rating of A (Excellent) by A.M. Best have made it the preferred choice of leading lenders nationwide.
Top 5 Reasons For CPI
  1. Borrowers are taking more time to repay their loans.
  2. Loan amounts are growing; new loans up nearly $300.
  3. Average credit scores for new vehicle loans have dropped.
  4. Lenders are buying deeper to grow portfolios.
  5. Delinquencies & charge-offs are beginning to rise.
  • Concerns mount over CFPB scrutiny of auto lending
    Bank officials say they are becoming more concerned about anti-bias scrutiny from the Consumer Financial Protection Bureau over the financing of auto loans. The CFPB will look at the car buyer's surname and home address as proxies to determine a borrower's race, says Patrice Ficklin, assistant director of fair lending and equal opportunity. But bank officials contend that can be inexact. Ficklin refused to name specific parameters that will trigger a fair-lending lawsuit from the agency, and banks worry that even the smallest difference between average interest rates charged to borrowers will trigger an investigation. (free registration) (3/15)
  • Car prices will rise under CFPB lending mandate, dealers say
    Auto dealers say borrowing costs will rise if lenders offer dealers flat-fee compensation models -- as the Consumer Financial Protection Bureau is urging -- instead of allowing dealer markups. The new guidance is meant to curtail discriminatory lending. Meanwhile, Richard Hunt, CBA president and CEO, said he looks forward to working with regulators to ensure consumers are protected from unfair lending. (free registration) (3/22)
  • Banks stretching length of car loans
    In the fourth quarter of 2012, the average car loan was 65 months, but more banks are stretching that time limit -- even up to 97 months, Experian Information Solutions reports. Car dealers say such deals allow more consumers to afford pricier cars but could lead them to hang onto a vehicle much longer, slowing future sales. The Wall Street Journal (4/8)
  • CFPB targets auto lenders' warranties and other add-ons
    The Consumer Financial Protection Bureau is investigating whether auto lenders are adequately disclosing the terms and prices of extended warranties and other add-on products. Separately, the Justice Department is investigating dealerships that make auto loans at higher rates to buyers with poor credit. The Wall Street Journal (5/2)
  • N.Y. readies suit over mortgage deal with banks
    New York State Attorney General Eric Schneiderman has announced plans to sue Bank of America and Wells Fargo, saying they violated their obligations as part of a deal that banks and 49 state attorneys general reached last year relating to foreclosure abuses. The banks say they will work to handle the issues he raised. The New York Times (tiered subscription model)/DealBook blog (5/6), The Washington Post (5/6), Financial Times (tiered subscription model) (5/6)
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