Lenders and borrowers alike continually express frustration with the perfection process and the challenges associated with keeping on top of requirements.
Understanding taxes and fees can be one of the most onerous parts of the motor vehicle titling process and is a primary cause of pain for lenders. For most lenders, determining the taxes and fees in different jurisdictions with varying requirements takes valuable employee time and is a drain on resources.
Here’s a sampling of lender and borrower testimonials on the subject:
“I keep getting letters from my lender asking me to, ‘Please title the vehicle.’ Why didn’t the lender tell me I had to do this before I bought the vehicle?”
“Why wasn’t I told what I would need to bring before I went to the DMV?”
“The process is so different in each state. It takes time and understanding to know the rules and regulations of each.”
“I need help providing my customers upfront tax and fee information so they can make good decisions.”
The amounts required for each can vary depending upon location, type of vehicles and intended use. For example, if fees are based on the gross weight of a vehicle, who can calculate what those will be? Will fees be paid directly by the borrower or rolled into the loan itself? The questions and answers can quickly become overwhelming. Changing regulations and requirements can also add to the frustration and cost. Motor vehicle title experts from Wolters Kluwer’s Lien Solutions, Rick Vanko and Lainie Gussman, explore the issues – and the remedies – in this white paper.
In consumer transactions where lenders are relying on their borrowers to file the paperwork, borrowers could be surprised when they show up at the DMV and find out about additional funds that are required out of pocket in order to complete the transaction. Worse, when the borrower is asked to secure the title and is not prepared with all of the correct information and funds, they could have an experience that reflects poorly on the lender.
The fact is, there are still many questions about perfecting a vehicle loan in transactions where a dealer is not present.
Learn more about what’s needed in a lender-friendly title management process by downloading our free white paper.