Managing Your Auto Loan Portfolio Risk
How Much of Your Auto Loan Portfolio is Underwater?
A Special White Paper Report
“None at My Credit Union”
Are you sure about that? It’s always difficult to see the potential problems when times are good. And for many credit unions, auto lending has been at or near record levels for the past few years.
Employment is up, interest rates, which has risen slightly, are still well below historical norms. Gas prices are low, and life is good in credit union land. But lurking under those warm rays of sunshine are warning signs.
Predict the Worst to Get the Best Results
Admit it, it’s been pretty easy to acquire loans in this economic environment. However, what if there is a downturn? No one could have predicted the intensity and duration of the Great Recession and its affect on both lenders and borrowers. Sure, policies have changed, become more conservative, but have they evolved to stand up to this new threat to your portfolio?
What Appears to Be, Isn’t
Basically 100% LTV isn’t really 100% LTV all of the time. Depreciation is up. A lot. Average loan term durations are on the rise. GAP claims increased by an unprecedented 50% in just the past year. Seeing the pattern?
This white paper references reports and studies on the many changes affecting the industry, how they may be adversely affecting your portfolio, and recommendations which can protect your borrowers and your credit union.
Stay informed and keep your lending portfolio dry and afloat. Download your copy of this white paper today!