Southern Auto Finance Co. (SAFCO) will start originating loans this quarter for military personnel following the subprime lender’s acquisition of Security National Automotive Acceptance Company’s (SNAAC) front-end origination assets, SAFCO’s Director of Sales and Marketing Zack Sawyer told Auto Finance News.
Fort Lauderdale, Fla.-based SAFCO purchased SNAAC’s intellectual property and front-end systems in October 2019, about one month after the Mason, Ohio-based lender stopped servicing loans. SAFCO also recruited several SNAAC team members, primarily in sales and technology, Sawyer noted.
“Initially, our expectations [for the new market] are conservative,” Sawyer said, adding that the company intends to grow the military lending program into an “important and significant” channel of its business.
Due to the Consumer Financial Protection Bureau‘s regulations for military financing, SAFCO will be required to adhere to specific underwriting and loan servicing processes that are distinct from originating and servicing subprime auto loans, Sawyer added. The acquisition of SNAAC’s origination assets and the recruitment of its former employees will enable SAFCO to efficiently process military auto loan applications, utilizing SNAAC’s developed technologies.
“Our nation’s military serves our country dutifully, and as such, we look to serve them,” Chief Executive George Fussell said in a statement. “Many may have no credit or blemished credit histories. We greatly look forward to helping them establish credit today for a better tomorrow.”
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