LATEST- Episode 15: CU Direct Offers Tips for Origination Growth Despite Looming Economic Downturn

Though credit unions have thrived in the current auto finance market, CU Direct is warning the 1,100 lenders on its platform to remain cautious as near-term macroeconomic factors — like rising interest rates and a potential downturn — are likely to spark additional risk factors. In this episode of The Roadmap, Auto Finance Excellence talks with Phil DuPree, CU Direct’s chief revenue officer, to discover how credit unions and other lenders can improve financing strategies amid the current market and outlines the top three ways to keep originations on an upward trajectory.

Featuring Phil DuPree, Chief Revenue Officer, CU Direct

Episode 14: Ally Exec Outlines How Lenders Can Navigate the Challenges of Unintentional Bias

Though regulators have relaxed discriminatory lending rules, auto lenders are stepping up diversity education. Ally Financial, for one, is bolstering training efforts to reduce unintentional snap judgments based on race, gender, or appearance – a concept referred to as “unconscious bias.” In this episode of The Roadmap, Auto Finance Excellence talks with Reggie Willis, Ally’s director of diversity and inclusion, to discover what lending executives can do to become more open-minded and avoid having unintentional bias trickle into interactions between dealers and their car-buying customers.

Featuring Reggie Willis, Director of Diversity and Inclusion, Ally Financial

Episode 13: Ramping Up Operations With an Eye Toward Acquisition

If there is one lesson Westlake Financial Services has learned since it started purchasing portfolios back in 2011, it’s to be prepared for hiccups along the way. Proactive communication and procedural refinement are two of the elements that enable companies to scale their business. In this episode of The Roadmap, Auto Finance Excellence talks with Paul Kerwin, Westlake’s chief financial officer, about what lenders can do to improve acquisition practices and leverage existing infrastructure for growth.

Featuring Paul Kerwin, Chied Financial Officer, Westlake Financial Services



Episode 12: How to Incorporate Diversity and Inclusion Practices in the Workplace

Collaborative corporate strategy, healthy relationships with other businesses, and opportunities that enable colleagues to fully express themselves are just a few of the benefits that come with a well-designed diversity and inclusion program for any financial services business. In this episode of The Roadmap, Auto Finance Excellence talks with two executives from Huntington Bank to discuss the steps required to develop and implement diverse and inclusive programs in the auto finance space. Tune in to find out how to ensure that the topics of race, age, and gender diversity never slip under the radar.

Featuring Rich Porrello, president of Huntington Bank’s auto finance business, and Marlon Moore, the bank’s chief diversity and inclusion officer.


Episode 11: Navigating and Strengthening Lender-Startup Partnerships

Strategic partnerships are at risk of being marred by culture clash, when the turn-on-a-dime mentality of a startup challenges the red-tape decision-making of larger finance companies. In this episode of The Roadmap, Sonia Steinway, president of Outside Financial, shares insights to help startups and their corporate partners develop – and maintain – healthy relationships. Steinway also outlines the needs for thorough compliance and privacy protocol, as well as an ability to cater to consumers’ various learning styles.

Featuring Sonia Steinway, President, Outside Financial

Episode 10: How to Embrace AI to Improve Originations

As auto lenders struggle to integrate artificial intelligence into origination models, powersports lessor MotoLease has fully embraced the technology. In this episode of The Roadmap, MotoLease Chief Executive Maurice Salter and Chief Operating Officer Emre Ucer discuss the steps involved in using AI to make independent credit decisions based on each person’s individual behavior, as well as the rationale for doing the project in-house. The pair also offer details of a soon-to-be launched website to consolidate dealer inventories and offer consumers a centralized resource with prequalification functionality.

Featuring Maurice Salter, Chief Executive, and Emre Ucer, Chief Operating Officer, MotoLease

Episode 9: Randolph-Brooks Federal CU Details the Relationship Between Customer Service and Growth

As credit unions continue to seize auto financing marketshare, knowing how they position themselves for success is key to understanding their growth. In this episode of The Roadmap, Sonya McDonald, Executive Vice President & Chief Lending Officer at Randolph-Brooks Federal Credit Union talks about the lenders’ strategy for growing direct lending by working with dealerships and how credit unions provide a unique customer service experience that bodes well for growth. She also discusses RBFCU’s long-term goal to increase automated underwriting, and even how women’s representation has grown in the credit union space.

Featuring Sonya McDonald, Executive Vice President & Chief Lending Officer at Randolph-Brooks Federal Credit Union

Episode 8: What the FTC Says Should Be on the Auto Industry’s Radar

With lingering uncertainty over what will become of the CFPB and unconfirmed appointees to the Federal Trade Commission, lenders’ compliance obligations are in flux. In this episode of The Roadmap, Dama Brown, Southwest regional director of the FTC, clears up confusion about collection practices and the Fair Debt Collection Practices Act, as well as valuable insights into a recent case again Blue Global LLC, which fraudulently sold consumer data that was promised to dealers. Brown also offers a sneak peek of a report that presents consumer sentiments about their auto purchases and financing.

Featuring Dama Brown, Regional Director, Southwest Region, Federal Trade Commission

Episode 7: How ABS Credit Enhancements Are Masking Subprime Risk

As multiple subprime auto securitizers come to the market with lower average Fico scores, longer terms, and higher loan-to-value ratios than their previous issuances, many of these deals are being rewarded with higher ratings. In this episode of The Roadmap, Joseph Cioffi, a partner at Davis & Gilbert LLP, discusses the latest trends in auto ABS, including the industry’s reliance on over-collateralization that may be masking greater subprime risk. Additionally, Cioffi also delves into trends such as the rising subprime delinquencies and losses experienced across the industry.

Featuring Joseph Cioffi, Partner, Davis & Gilbert LLP

Episode 6: How AutoGravity’s New CTO Is Tackling ‘Blocking Points’

From new security features to 3-D images and biometrics, AutoGravity has several technology development projects on its roadmap this year, according to the online auto finance company’s new Chief Technology Officer Sheng Wang. In this episode of The Roadmap, Sheng details her new CTO role at AutoGravity, why it’s important to have a mobile-first strategy, and the company’s tech goals for 2018. Additionally, Sheng talks about the future of the F&I office, where consumers might be “getting stuck” in the online finance process, and how AutoGravity is jumping over those hurdles.

Featuring Sheng Wang, Chief Technology Officer, AutoGravity.

Episode 5: Why Alternative Deal Structures Are Gaining Momentum

Alternative deal structures — in which lenders can offer potential borrowers with multiple finance options in response to a single credit request — are becoming more prominent as borrowers continue to seek instant credit decisions. In this episode of The Roadmap, Scott Hendriks, director of product management for auto originations at Fiserv, discusses how these alternative structures can prove beneficial for both lenders and borrowers, and why these structures are not just for the nonprime audience anymore. Additionally, Hendriks offers insight into how these structures can improve not only service levels, but book-to-look ratios.

Featuring Scott Hendriks, Director of Product Management for Auto Originations at Fiserv.

Episode 4: Cordray Successor Confusion Placed a ‘Cloud’ Over the CFPB

Following the resignation of Consumer Financial Protection Bureau Director Richard Cordray, there has been much confusion surrounding the future of the CFPB and its leadership. Cordray named Leandra English as the agency’s interim head, shortly before President Donald Trump named Office of Management and Budget Director Mick Mulvaney to the position, which ensued chaos. However, on the evening of Nov. 28, amid a battle of who would be the agency’s interim head, U.S. District Judge Timothy Kelly ruled in favor of the White House. In this episode of The Roadmap, Lucy Morris, partner in the Washington, D.C., office of Hudson Cook LLC, offers her insight into the CFPB leadership chaos, and advice for lenders in the short and long term. Morris also voices her opinion on who could be the permanent replacement for Cordray, and in what ways the CFPB could potentially change — or not change — under new leadership.

Featuring Lucy Morris, Partner in the Washington, D.C. office of Hudson Cook LLC.

Episode 3: Managing Success Based on Service, Not Marketshare

Security Service Federal Credit Union attributes its No. 1 rankings in the annual Auto Finance Performance report to managing success by focusing on dealer and member service, and not by trying to gain marketshare. In this episode of The Roadmap, Charles Goss, executive vice president and chief lending officer at Security Service, details the credit union’s secret to success, how it strives to enhance dealer relationships, and conservative underwriting efforts as the industry heads toward a down cycle.

Featuring Charles Goss, Executive Vice President and Chief Lending Officer at Security Service Federal Credit Union.

Episode 2: Navigating Subprime Auto Credit Risk

Deep-subprime lending has notably expanded in the nonbank auto space, reaching $38.9 billion outstanding as of June. Additionally, subprime auto defaults reached $1.8 billion in June, making up about 80% of all defaults in the market. In this episode of The Roadmap, Michael Vogan, automobile economist in the credit analytics department at Moody’s Analytics, details a presentation he developed on subprime auto credit, including how heightened competition and better analytical capabilities for risk modeling and repossession activity have contributed to the rise in defaults. Vogan also offers insight into where subprime loans are most concentrated geographically, how the recent hurricanes are expected to affect the auto finance market, and why he thinks payment problems are a function of underwriting policy.

Featuring Michael Vogan, Automobile Economist in the Credit Analytics Department at Moody’s Analytics.

Episode 1: Where’s the End for Depreciating Used-Car Values?

Industry leaders continue to predict where the end of the line will be for declining used-car values, but what can lenders do to prepare in the meantime? In this episode of The Roadmap, Chuck Jones, head of national indirect lending at SunTrust Banks, shares his “proactive” approach to remaining rational in the market, particularly as delinquencies rise. Jones also offers a peek into how bullish SunTrust will be with new and used financing next year. In 2014, Jones joined SunTrust Banks — which had $9.8 billion in outstandings at yearend 2016, according to Big Wheels Auto Finance 2017 — to provide strategic direction, execution, and outcomes for the business.

Featuring Chuck Jones, Head of National Indirect Lending at SunTrust Banks.