Westlake to Invest in Automation

Westlake Financial Services plans to invest in an automated originations system, the company’s President Ian Anderson told Auto Finance News.

“We are working on the system now, but we are a good three months away from really making a splash in the market,” he said.

The automated originations will add to the company’s automated underwriting system by enabling the deals to be validated and funded electronically, which will eliminate the need for any human decisions.

“A lot of what we are doing is a reaction to the Consumer Financial Protection Bureau to make sure that our company is always compliant — which is a good thing, because it allows us to look at the business and make changes where we think are best.” The CFPB “actually prefers automation and would rather not have human decisions,” Anderson said, “because human decision allows for subjectivity.”

Westlake is no stranger to CFPB regulation. Last year, the lender and its Wilshire Consumer Credit unit reached a $48.3 million consent order with the CFPB after settling charges that alleged its debt collectors pressured borrowers with threats and employed phony caller ID numbers. In the consent order, Westlake neither admitted nor denied the CFPB’s accusations but agreed to pay $44.1 million in cash relief and balance reductions, plus a civil penalty of $4.25 million.