Lending Club’s new auto refinance offering, announced last week, has the potential to vastly increase the amount of refinancing the industry sees annually, Todd Denbo, the company’s vice president of consumer lending, told AFN.
“We know that every year, roughly, there’s about $40 million of refinance volume,” Denbo said. “We think that by making the process far more simple, and helping the consumer get to an offer in less than a minute — by piping in data that exists on the customer, versus asking the customer to key in things like their VIN number — we can actually double or triple the amount of refinance volume that happens in the United States.”
The new auto refinance product will be available for consumers over 640 Fico for anywhere from $5,000 to $50,000, with an APR ranging from 2.49% to 19.99%, and terms from 24 to 72 months, according to a press release.
The product launched in California, with plans to expand nationally in 2017. However, the rollout will be gradual and measured, both geographically and across the credit spectrum, Denbo said.
“We think there is more opportunity, sub 640, but that will be a sequential phase,” he said. “That will be somewhere downstream for us, from a timing perspective.”
