MIDDLETOWN, Penn. and KANSAS CITY, Mo. –Through a partnership with Lockton, Sollievo said it is now offering a new auto loan program that is exclusive to credit unions: Partial Recourse Protection (PRP). The program is designed to help significantly increase both direct and indirect lending, increase yield and approve more loan opportunities that are currently being missed due to high loan-to-value (LTV) ratios, according to the company.
“To do this, the PRP program gives credit unions the ability to offer additional funds to members who qualify for a loan that cannot be processed due to high LTV ratios,” the company said. “Members who qualify are those with good credit, but may have negative equity in a trade or the inability to satisfy down payment requirements, causing a credit union to lose the loan. PRP gives a credit union the flexibility to provide a more competitive solution to its members, while minimizing additional risk through an insurance-backed program.”
“By offering this product, we’re giving credit unions an unrivaled resource to increase revenue and loan volume, as well as provide members with more buying power,” said Lori Gall, president and CEO of Sollievo, in a statement.
The PRP program can be easily implemented with no contracts or enrollment fees, does not require a change in your lending guidelines and can be utilized immediately. In addition, the PRP system for quoting, eligibility and approval can be integrated into a credit union’s existing loan origination software, the company said.