LAUNCHER.SOLUTIONS, a technology provider specializing in subprime automotive loan originations, has integrated access to Carfax® Vehicle History Reports™ into its core product, appTRAKER Loan Origination System. Now, subprime auto lenders can get Carfax information for used vehicles before executing a loan, protecting both the lender and the potential borrower.
“An important piece of the underwriting process is being able to accurately assess the value of a vehicle as collateral,” said Nikh Nath, President of Launcher. “Lenders have been asking for this integration, so we are happy to meet their needs.”
Launcher’s appTRAKER Loan Origination System is designed specifically for subprime auto lenders so every aspect of the system, including collateral assessment, is carefully aligned with the goals of the subprime loan origination process. Using the vehicle identification number (VIN) or license plate information, lenders see Carfax data that helps them identify potentially dangerous and costly issues such as accidents, flood damage, odometer fraud, title washing and more. These problems can lower a vehicle’s value by up to 50 percent, lead to costly repairs, and increase the risk of loan default.
“Thousands of lenders use Carfax data to help better assess the condition and value of used cars,” said David Lackey, general manager of the Carfax Banking & Insurance Group. “While there are lots of great used cars available there are also many with potential problems including the hundreds of thousands flooded as a result of Hurricane’s Harvey and Irma. Working with partners like Launcher, subprime lenders can easily avoid these and other problem vehicles while using the new VIN-specific Carfax History-Based Value to more accurately set their loan-to-value ratio based on a vehicle’s unique history.”
The concept of lenders reviewing vehicle data prior to making a loan decision is not a new one, but many lenders still leave out this important part when underwriting a loan. The integration partnership between Launcher and Carfax gives lenders additional ammo in their artillery by allowing them to analyze every aspect of a deal to make the best holistic decision.