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GDNAuto, CU Lending Partner to Maximize Portfolio Opportunities

October 14, 2008

ALAMO, Calif. – If a new partnership between Global Debt Network Automotive and CU Lending Solutions LLC goes as planned, credit unions across the U.S. will have new opportunities to expand their auto loan business. The GDNAuto platform will allow credit unions to tap into fast-growing nonprime segments and extend their reach and income stream beyond their local geography by selling and buying seasoned auto loan portfolios, according to Mike Sheridan, GNAuto's founder and president.

“As more Americans seek out used vehicles, dealerships need new financing partners to help them serve a much larger universe of customers and offer a far more diverse set of loan products than they have in the past,” Sheridan said. “At the same time, credit unions and finance companies are discovering there are ways they can serve this population and do so quite efficiently and profitably by selling their seasoned loans or balancing their risk by purchasing loans from other geographies.”

CU Lending Solutions works with credit unions and finance companies custom-develop, build and operate auto lending businesses that deliver sustained value. By accessing the GDNAuto platform, banks, credit unions, hedge funds and other pre-qualified investors can use their own secure filtering tool to specify the types of loans they want to buy. Investors can review dealership portfolios, select the loans they want and submit a bid for consideration, according to GDNAuto.

“Increasingly, credit unions are more comfortable reaching out to serve this population of borrowers because they have access to an array of tools, services and resources that help them connect with new dealerships and better manage the financial and operational risk associated with indirect, non-prime loan portfolios,” said Frank Mercer, president/CEO of CU Lending. “This partnership extends the market reach of both companies and provides auto dealers and lenders with an efficient way to originate more loans and convert the seasoned loans they have originated into cash to fund their operations.”

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