Managing Auto Portfolio Risk: Tactical Strategies and Questions to Ask

 

 
 
 
 
 
 
 
 

 

May 24, 2022 | Allied Solutions   

 

Managing Auto Portfolio Risk: Tactical Strategies and Questions to Ask

This article was originally published on CU Insight

In today’s economy, the efficiency of recovery efforts is affected by many factors—from compliance and regulatory changes to consumer trends and lending preferences.

Specifically, impacts of the pandemic, such as the increase in remote work (affecting borrower and collateral locations) and the rebound from repossession moratoriums, are causing credit unions to pivot and reevaluate their risk management strategies. To maximize risk mitigation, it’s important to have strategies for both collateral and monetary recoveries.

Challenges for Collateral Recoveries

Physical collateral recovery was impacted by the pandemic when repossessions faced moratoriums. As activity picks back up many credit unions (and their vendors) are facing a backlog of collateral recovery and recovery resources are becoming scarce. Many borrowers have shifted to working in remote locations and while this has reduced traffic and potentially claims, it has also resulted in collateral not residing at the address on file. Some important collateral recovery solutions to consider include repossession and remarketing. Using a third-party provider for these services gives credit unions access to a nationwide network of agents, and helps credit unions of all sizes improve collateral recovery results.

Changes for Monetary Recoveries

The recovery of dollars on delinquent accounts is just as important as the recovery of physical collateral. While collection moratoriums, forgiveness programs, and stimulus payments helped carry Americans through the pandemic, many are still experiencing financial instability. Keeping in mind your members’ financial situations, while maintaining compliance with delinquency management regulations is a balance. Outsourced collections and remediation for claims and product refunds, are solutions that leverage technology to help respond to these recovery challenges. Solutions such as debt buying can help credit unions monetize debts and gain cash flow for long-term income generating assets.

5 Questions to Ask about your Collateral Risk Program

For holistic collateral risk management in 2022, ask these 5 questions:

Read the full article here.

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About Allied Solutions

Allied Solutions, LLC is one of the largest providers of insurance, lending, and marketing products to financial institutions in the US. Allied Solutions uses technology-based products and services customized to meet the needs of over 4,000 banks and credit unions, along with a portfolio of innovative products and services from a wide variety of providers. Allied Solutions maintains several offices strategically located across the country and is a subsidiary of Securian Financial Group, Inc.

 



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Content in the blog posts are the opinion and views of the writer, and don't necessarily reflect the opinions or views of Allied Solutions.

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