INDIRECT AUTO
RATE MONITORING™ SERVICE
Description
Preiss&Associates' Indirect
Auto Rate Monitoring™ Service monitors indirect
auto loan portfolios of financial institutions
and captive finance companies on both a
dealership and loan basis. On a dealership
basis, Preiss&Associates monitors the frequency
and magnitude of the difference between the buy
rate and contract rate charged protected class
applicants versus non-protected class applicants
to identify dealers that may have frequency or
magnitude issues. On a loan basis, Indirect Auto
Rate Monitoring‘ uses regression analysis to
monitor for possible problem loans regardless of
the dealership.
Uses
- Tests for systematic
differential treatment in dealer credit
pricing on indirect auto loans using
regulator procedures.
- Examines for differential
treatment with respect to the interest rate
spread (the difference between the buy rate
and contract rate) charged protected classes
versus non-protected classes regardless of
the dealership.
- Assures consistency in
the dealer pricing decision across their
customer base.
Benefits
- Uses statistical expert
to do analysis like the regulators.
- Increases productivity
through easy to use custom reports; avoids
data management, learning and technical
concerns.
- Screens 100% of
application files statistically, not just a
sample.
- Reviews only that files
may be problematic, not a random sample of
the portfolio.
- Identifies problematic
files on a timely basis: quarterly,
semi-annually, annually.
Staff and Business Qualifications
- Ph.D. in Economics with
specialization in econometrics.
- Post-doctoral work at
Wharton Econometric Forecasting Associates
in Philadelphia, under Nobel Laureate
Lawrence Klein.
- Combination of unique
technical skills and practical business
experience sets Preiss&Associates apart from
competitors.
For more information and a
full discussion of your requirements, please
contact Preiss&Associates
