FactorTrust, the alternative credit bureau, has a new powersports lending solution in the works, aimed at providing powersports lenders the ability to help consumers afford their vehicles, according to Scott Brackin, FactorTrust’s vice president of auto finance.
The powersports-specific solution, slated for release by October, is based off FactorTrust’s recently launched LendProtect ATR (Ability to Repay) innovative solution, Brackin told Powersports Finance. LendProtect ATR, which was released May 17, helps lenders accelerate the assessment of consumers’ ability to repay in preparation of anticipated regulation from the Consumer Financial Protection Bureau.
“The ATR product will give powersports lenders additional insight to those consumers that need to get access to credit for powersports,” Brackin said.
The CFPB’s proposal is expected to require the short-term credit market to take new steps to ensure consumers can repay vehicle title and other short-term or open-end loans by considering a 30-day “cooling off” period between loans, according to a company press release.
The ATR product will also calculate the applicant’s residual income — which is the measure of income minus debt obligations, cost of living, loan payments, and fees. The data shows that adding alternative scoring data can increase the universe of those who qualify by up to 20%, Brackin said. The ATR dashboard also gives lenders access to real-time decision support and transaction processing to help manage and monitor the audit processes.