CU Direct to Launch Custom Auto-Loan Risk Score
Designed by FICO, CU Direct Connect’s new auto-loan risk score will help credit unions make more profitable auto-lending decisions. The new feature will be available in 2015’s third quarter.
CENTENNIAL, Colo. — CU Direct Connect (CUDC), a provider of indirect auto-lending services to credit unions and auto dealers, has announced the late summer availability of a custom auto-loan risk score, designed by FICO.
This new score will help credit unions that are lending through CUDC’s program to manage their risk with greater precision and safely extend their credit to more people, officials said.
Designed to complement FICO Scores, the custom application score analyzes specific data elements from consumers’ credit bureau files, information from the consumer’s credit application, and deal information to more precisely distinguish good and bad credit risks for automotive loans. The overall goal is to help participating credit unions drive more profitable decisions. As CUDC expands into Wyoming, Arizona and other markets, this new custom score will allow CUDC credit unions to better manage credit risk on portfolios in new markets.
“The FICO Score has been the gold standard for assessing consumer credit risk in North America for 25 years,” said Tim VanTassel, vice president of Credit Risk Lifecycle Solutions at FICO. “Adding our custom application score brings CUDC and its lending partners the sharpest possible prediction of a borrower’s likely performance on an auto loan.”
“By working with FICO to create a custom application score, we are taking a big step in supporting our credit union partners and their interests.” said Blair Korschun, CUDC president and CEO. “By using this new score, the credit unions in the CUDC program can better manage risk associated with auto loans.”
Originally posted on F&I and Showroom
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