A higher industrywide auto refinancing volume will “absolutely” lower delinquency rates, and iLending Direct is already proving it, Nancy Fitzgerald, president and chief executive of the online financier, told AFN. “[At] one of the largest credit unions I work with — I’ve got a $200 million portfolio with
them — we have a 0.7% delinquency rate,” Fitzgerald said.
Credit unions, in particular, are set up to handle refinancing well, due to their not-for-profit status. “They truly care about their members, and because of the tax situation, they are able to offer the lowest rates possible to their members,” she said. Many consumers that received a loan post-recession have been rehabilitating their credit as the economy has improved, Fitzgerald added.
“Most of the customers that we have either got jammed at the dealership or they had a life event, and so at the time they got their car loan, their Fico was significantly lower than it might be today,” she said. “No matter who it is, the chances are we can save them some interest on their auto loan.”
