Following its acquisition of SNAAC’s portfolio, Westlake Financial plans to be even more aggressive in the third-party servicing space heading into 2020, Todd Laruffa, vice president of Westlake Advanced Lending and Portfolio Services (ALPS), told Auto Finance News. In addition to servicing portfolios for companies that are exiting the business, Westlake is targeting companies entering the space.
“The second aspect in 2020 we are focusing on is also partnering with auto loan originators,” Laruffa said. “Companies that are maybe moving into the business, but they’re currently facing some barriers to entry like establishing a servicing platform – WPM can provide that.” The lender already is working through some partnerships with originators, he noted, although he declined to add specifics.
Last week, Westlake confirmed its acquisition of SNAAC’s portfolio as the Ohio-based lender shuttered operations in September. Prior to that, it took over Total Finance’s portfolio in May and has been servicing Honor Finance and Pelican Auto Finance‘s portfolios since 2018.
In addition to companies entering the auto finance industry, Laruffa noted that Westlake’s portfolio management division is eyeing longstanding companies that want to offer loans further down the credit spectrum.
“There are larger banks that may not want to enter into the subprime space because of the risk of servicing, which is a risk that [subprime lenders] certainly have, WPM is able to offer account servicing to these banks,” he said, adding that Westlake can service loans throughout the credit spectrum. “They can enter the subprime space and WPM will be their servicing arm.”
Join us for Auto Finance Summit 2019, October 28-30 at the Bellagio Las Vegas. The summit continues to bring together the best and brightest executives in auto lending and leasing for unparalleled networking and education. Register now at www.autofinancesummit.com.
