How Collateral Loss Avoidance strategy can help auto lenders outperform loss projections
For consumer lenders, effective loss management is a critical success factor for their long-term business survival. As a result, lenders spend a significant amount of time and effort forecasting their loss projections on auto loan originations and other asset classes.
Most of the focus of these type of efforts is the examination of collections, risk scoring, and other metrics that can aid the analyst in modeling a lender's given loss ratios against a portfolio. These heuristics enable lenders to project net losses from nonperforming loans after the collateral has been recovered and liquidated.
In today's environment, however, such analyses are not enough: lenders should also examine strategies to capture other funds that may be available to help reduce losses on the disposition of collateral that serves as the security for non-performing loans.
Download this paper to find out how to develop a strong Collateral Loss Avoidance strategy and significantly reduce your risks and costs today.