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Q. What kinds of lenders can benefit from CU Lending Edge (CULE)?
A. Literally any credit union as well as any other lender that is looking for new or used auto loans and other secured loans can benefit. While the system carries the CU moniker and was created by credit unions, within the CULE program several non-CU lenders are provided loan opportunities that credit unions cannot approve or place in their portfolios. Non-CU lenders run the gamut of small independent banks, S&L's and finance companies, to larger regional and national lenders, to working with Wall Street firms in packaging and pooling loans for sale and distribution on secondary markets. Lendgistics, LLC (www.Lendgistics.com) also serves number of non-CU lenders in a non-CU branded program designed specifically for the non-CU marketplace lenders.
Q. So any lender can participate, but what's different about CULE from other programs?
A. Any lender can benefit from the CU LENDING EDGE system. CU Lending Edge is unlike anything in the marketplace today. In fact, from the inception of the program and still today, we challenge ourselves to make certain that the unique services we provide are truly different and needed. Creating a program as an alternative, rather than a competing program in the marketplace, means CU LENDING EDGE is something different - and something different in the marketplace is what is needed!
From providing truly customized filtering to multi-solution/iterative decisioning, to eliminating the costs of starting and maintaining a program, right down to the staff, software and hardware, CU LENDING EDGE was born to perform!
Q. Do I get the impression that the CU Lending Edge System can replace or eliminate my current decisioning engine?
A. Yes. You still need your core processor of course, but the CU LENDING EDGE System can easily become your automated decision engine for all of your credit union's consumer loans, not just indirect and direct auto loans. We can build any product and any product decisioning criteria into the system, so you can use the system for all of your automated loan decision needs. Whether CULE is utilized solely as an indirect and direct automobile lending program, or internally as an automated loan decision engine for staff, or even as a completely web-based automated consumer loan platform, the Lendsys, LLC engine utilized by CU LENDING EDGE is the most powerful automated loan decision engine available in the marketplace today.
Q. As an experienced lender I've been involved in indirect lending in the past and it was a nightmare. Why would your program work for indirect when others haven't?
A. Whether you are doing direct or indirect lending today, have done it in the past and stopped, or have never been involved in indirect due to the inherent problems and negatives of current and past programs, you should consider CULE for the following reasons:
The benefits for lenders are almost unlimited . . .
Q. Don't the dealers and large lenders pretty much control who gets the loan volume?
A. This may have been true in the past, and it's certainly true with other lending systems, but not with CU LENDING EDGE. There are several major structural and conceptual differences between CU LENDING EDGE and all other indirect programs in existence today. For credit union lenders the program is geared primarily to identify and send existing member loans directly to you for decisioning. CULE removes control from the dealer as to where the loan is sent. This process alone separates CU LENDING EDGE from nearly every other indirect or direct loan provider! In the CU LENDING EDGE program dealers and large lenders can't and don't control the loan submission process.
Q. What do you mean, dealers and large lenders can't control the system?
A. Functionally, dealers submit loans directly to the CULE automated decisioning engine, not to a specific lender in the system. The CU LENDING EDGE engine searches the extensive lender database and first looks for a MemberMatch to determine which credit union the loan (or member) belongs to. This is drastically different than other systems that encourage each CU to hire and maintain dealer representatives that then make individual and multiple calls on dealers to attempt to get dealers to send them, not you, the loan application. Since dealers don’t get to choose which specific lender in the system to send the loan to, they do not control the system. Large or small - lenders are all treated equally in terms of loan distribution. If the loan application coming into the system is your member, you get the loan! Only when you don't approve your own member will the application continue through the system to look for an approval from another lender in the system.
Q. What about this “Next-in-Line” concept? Can I lose an actual member loan as a result of this?
A. In short, yes. But remember, everyone takes their turn with multiple member matches. If the Next-in-Line algorithm determines that it is not your turn, you will not have the first crack at the loan decision, but this only happens when a member belongs to multiple credit unions in the system. After each decision the next-in-line order shifts and you get that much closer to being first-in-line the next time multiple MemberMatches take place in the system. Essentially, the Next-in-Line process ensures that every credit union in the system will get an equal share of all existing member (as well as potential member) loans portioned out based on fair, unbiased and equitable mathematical formulas.
Q. What are the costs?
A. Call us for specific pricing in your area and we can explain the specifics regarding the different service levels and geographic regions. Pricing may vary based on the CUSO provider pricing schedule in your individual marketplace.The costs are very reasonable and highly competitive. Our pricing provides a much higher value than other products on the market. It is our goal to make this product affordable for any size credit union.
Q. Do you have interfaces with any of the large loan application acquisition services?
A. Yes. The CU LENDING EDGE system does have an integrated and automated interface with RouteOne and DealerTrack. This clearly benefits the 20,000 plus RouteOne and DealerTrack dealers, and our lenders benefit because this makes virtually every franchise dealer in the country in every market in the country a potential dealer for our system.
Q. Does your system run my credit report and lender subscriber number?
A. Yes. When you come in the system as a lender we work with the credit bureau to assign a separate subscriber code to all CULE decisioned loans. Each lender is billed directly for all of the credit reports pulled on their behalf each month and they can use the data to track approval and funding ratios and to create other important and useful reports.
Q. Can a small credit union really compete?
A. Yes! This product was created specifically for small and mid-sized emerging credit unions that haven't given up on making loans to their members. The CULE system takes the human element out of where and who to send the loan to with processes like MemberMatch and Next-in-Line ensuring that each CU gets their own existing members’ loans. So you can be on the program and be located right down the street from the largest and most aggressive lender in your market and still consistently get loan approvals and funding through the CULE program, because everyone takes their turn. If you have fewer members you will of course have fewer turns than the bigger guy but still get your fair share, and that is better than where you are now - wouldn’t you agree? Do the math. Capturing just one or two existing member loans a month that you are now losing without CULE, could make the difference between an OK and good, or good to great year for you.
Q. Does the system provide the necessary reports and data so that I can stay on top of the trends in my portfolios, track delinquencies, charge-offs, and dealer performance?
A. Of course. Standard reports are available as are individual data downloads for each entity utilizing the system at whatever frequency is required by the user/entity.
Q. Have you completed market development and testing?
A. Market testing and operational and processing testing for the back office validation services and administration is complete. We operated (actual loan origination and funding) in the Southern California marketplace for over two years utilizing other vendors’ software. CULE has been developed from day one to deliver an alternative to the indirect lending programs available to credit unions that are in the marketplace today. One of the major challenges we have addressed and resolved with the market testing is to enable credit unions of any size to effectively and profitably implement both a direct and indirect lending program.
If you have a question that has not been answered, feel free to send us a detailed question using our "Contact Us" page.