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> Industry data show more than 35% of consumers nationwide have "impaired" credit. It's a market that's growing about 12% each year.
But many credit unions have discovered they can safely make auto loans to members with impaired credit through a program offered by Centrix Financial, LLC, Englewood, Colo. Instead of turning members down for auto loansonly to have them obtain higher-priced loans elsewhere-credit unions can use Centrix's Portfolio Management Program (PMP) to serve these members.
"Credit unions tell us they choose this program because it helps them meet a broader spectrum of member needs, while receiving a greater return, with little or no risk," according to Robert Sutton, Centrix chairman and chief executive officer (CEO).
PMP is a turnkey program. Here's how it works: Centrix markets, underwrites, packages, and services individual nonstandard auto loans and provides an insurancebased guarantee against principal loss.
Portfolio yields for loans made through the Centrix program in 2000 were 11% to 13% annualized, depending on the specific portfolio. All procedures, underwriting, and collection...