Replies to This Discussion

Permalink Reply by Bill Thaxton on August 12, 2008 at 5:04pm

I think the key is to commit to using the portals. They are typically there in lieu of data entry for credit applications received from dealers. If you commit to using them exclusively then you no longer need data entry clerks. You should also contact DealerTrack, Route One, etc. if there are extra fields you need populated so that they can add those fields. You may have to find other lenders to support your position to encourage DT or RO to add the fields. Dealers are inherently lazy about doing things that they don't need. In fact dealers now feel that the portals are essential to distribute the applications as needed and to see aggregated answers, rates, etc.

The inevitable issue most lenders have with the portals is that the closure rates drop. In fact, that issue isn't any different than normal for dealers as they can and will fax applications to as many players as they wish. The fact that the portals make that easier shouldn't be a reason for blaming that problem on the portals, it's the dealers fault.

Portals provide consistency and some base level compliance. Before the portals arrived all lenders were overwhelmed by the flow of credit applications. Now, that has been eliminated. I'll bet those reading this feel I'm being paid by the portals. Frankly, I was an opponent for the first few years as the cost wasn't easily transferrable from data entry to portal costs. I became a believer and have been ever since. The simple fact that it is the exclusive way most all dealers transmit credit applications and now contracts electronically should make the issue of portals a non-event. Portals are essential.

Permalink Reply by Barry B Kirby on August 12, 2008 at 5:18pm

Very good points Bill...not only are the data entry costs significantly reduced but the process itself is streamlined.

If you are connected to Dealer Track and Route One through a Loan Origination System the values soars through the roof. This enables the lendes to harness technology to do the heavy lifting, ie: Pull Credit, Pull Vehicle Values, Automatic Calculations of Ratios (LTV, PTI, DTI, etc.) as well as mirror the deal against a well designed decision engine which will provide the underwriter better insight into how to best structure the loan.

Processes in this environment can reduce turnaround times down to minutes and sometimes seconds while providing credit consistancy and better dealer feedback b/c you are helping to meet their challenges of speed and responsiveness.

Permalink Reply by Brian Hiatt on September 23, 2008 at 10:50am

We use both to submit applications and monitor application status to all of our lenders. We do no applications by fax or phone to the lenders so both these tools are essential to add efficiency to our business process.