[toggle title="TRANSCRIPT"] <div class="transcript-scroll-box">00:04Ladies and gentlemen, once again please welcome the chairman of auto finance summit. JJ horn Blass. JJ Hornblass 00:21 Okay, good afternoon everyone. Hope everyone had a great morning and a lovely lunch. Before we present the 2017 Auto Finance Excellence Awards, please join me in thanking clarity services our hosts for this awards lunch. Let's give them a round of applause. We are very appreciative. Thank you to the whole clarity services team. All right, so this is the 13th time I've stood before you to present the autofunnel Excellence Awards, and really couldn't be prouder to do so. We had hoped when we started these awards back in 2005, that they would become a mark of distinction within the auto finance industry. I certainly hope that's the case. The great golfer Gary Player once said, The harder you work, the luckier you get. And that is really the spirit of these awards. First, we want to congratulate last year's winners once again. So Security Service Federal Credit Union, Hyundai Motor finance, Mercedes Benz financial services, Hyundai, capital America, and Brad Bradley of consumer portfolio services. Let's give them a round of applause again. Okay, so three awards. will be presented based on the criteria we set in 2005. That's for Lifetime Achievement, charitable or community activities, and innovations in product development or operations, or for noteworthy deals or joint ventures. These awards are based on nominations from you. And from the auto finance news editorial team. The other two awards will be given to companies that scored highest in the auto finance performance. That's royal media's annual data initiative to quantify lender performance based on dealer surveys. So we're going to start with the performance winners for the AFP as we call it, we digitally field profession input from dealers across the nation for a select group of auto finance company clients. This year we fielded responses from about 2200. dealers during the research period. This summer. The dealers were asked to rate the performance of lenders around four key components that service reps, pricing and product selection. We gauge overall performance as well as specific performance in prime and non prime lending on a scale of one to 10 with 10 being the highest possible score, and we're pleased to recognize the top lenders in prime lending and in non prime lending today. So to the prime lending winner for the third year in a row, the top lender in The nation for its prime performance is Security Service Federal Credit Union. Security, one sec. Sorry, I did want to say something Charlie, what's up? So, security service is the 30th largest lender in the nation, finishing last year with about 5.4 billion of out of auto outstandings and is known to dominate the greater San Antonio market where it is based security service recorded and overall prime performance score of 9.08 out of 10, which actually matched its score in 2016. Also, for the second consecutive year Security Service was the only lender that recorded a score above nine. Not surprising considering that security services known Have passionate fall of have a passionate following among local dealers. We're so pleased to honor them today again, and here to accept this award is Charlie Goss, Executive Vice President, Chief lending officer. Now we could go. 05:46 JJ, thank you very much. It's quite an honor to win an award of this magnitude. You know, we I'd like to think after the third year in a row that maybe this is starting to be a trend That we're doing the right things for the right reasons. It's certainly been a challenging year. I think all of us know that in the auto lending business with increased delinquencies and 49 out of 50 states cost of compliance going through the roofs. We had to make changes in our program to ensure its sustainability. Throughout the market, we got more conservative, we changed to a flat fee on the structure. We lowered the flat fees, we had to do a lot of things that were very positive in the data world. And at the end of the day, I think this this award reflects the efforts of the people and this is really a people oriented business, my staff and everything, the relationships that they have built throughout time has really paid off in the long run. And so it reflects their hard works and their efforts of what they have done and I'm very proud to accept this on their behalf. So thank you very much. JJ Hornblass 07:01 So to the we'll go now to the top nonprime. subprime lender. So our next Excellence Award goes to that lender and it is Ford Motor credit Co. them. The Dearborn, Michigan based captive was the number five lender overall in performance and tops in lending outside the prime space and actually by a wide margin at that. Ford ranked first in all four categories pricing service reps and products. I should note that this is not a credit score specific designation but rather what dealers view as lending beyond prime lending. dealers lauded Ford credit for its accessible ability and flexibility, ease of doing business and quick funding. They also liked the captives floor plan and special rates. Some of the accolades from Ford credits dealers, quote, they're loyal to pass for customers, even when their credit has taken a bad turn, quote, they go out of their way to try to put a deal together. It should be mentioned that overall across all credit tiers, and all lenders lender performance actually declined to 7.2 a 7.65 score compared to 7.93 for 2016. Something for all of us to work on in 2018. But that's not taking away anything from Ford's exceptional performance. In so many ways, and for so many years, Ford credit has set a shining example for the industry. We're pleased to recognize Ford credit For its strong lending performance with the 2017 Auto Finance Excellence Award here to receive the award is Edgar Gutierrez from Ford credit. Image going 09:27 down, down, down down. 09:43 Thank you, JJ for the award for the recognition. For credit. We're always working hard to try and make sure to put as many deals together as we can for the dealerships. Always trying to make it easy to work with us. And this award kind of solidifies our efforts are being recognized by the dealer body and we Continue to work forward and do a better job. Thank you. JJ Hornblass 10:10 So we view the most prestigious Excellence Award as the one that is presented annually for community service. And we're proud to give the 2017 Community Service Award to General Motors financial. GM financials mobility initiative is aimed at empowering and enriching local communities. The mobility initiative is comprised of two core programs, keys by GM financial and cool cars for remarkable kids. cool cars for remarkable kids, which is the reason why GM financial is receiving this award. is a collaboration with Ronald McDonald House to facilitate the use of off lease vehicles to transport sick children and their families. As you may know, Ronald McDonald Houses offer housing to families so they can stay close to their hospitalized child at little to no cost. There are Ronald McDonald House chapters in more than 64 countries and regions around the world. Over the last year, General Motors financial has had or will have cars delivered to Ronald McDonald Houses in states where GM financial has a strong business and employee presence and those states are Arizona, Texas, Michigan, Massachusetts and North Carolina. GM financial is offering a helping hand to families saw suffering through terrible circumstances. And we are pleased to recognize this great communal good with the 2017 Auto Finance Excellence Award for community service. Here to accept this award is Kyle birch, the chief operating officer. 12:42 Thank you, JJ. I don't have a speech prepared. But we're very proud of our partnership with the Ronald McDonald House and investment in charities in the communities where our employees work and live. And thank you so much for the award and we're looking forward to continuing these type of investments next year. Thank you. JJ Hornblass 13:06 So it's our pleasure to present a 2017 Auto Finance Excellence Award for innovation to chase auto finance, which, please, we can clap for them. It's a chase auto finance, which beat many of its competitors to market with its direct digital lending application. Chase launched chase auto direct in August of 2016 and continues to revamp the portal regularly. Chase auto direct is built right into the bank's retail banking application and represents a bold commitment at the mega bank, to retail digital auto finance as well as a willingness on the part of chase to embrace a new auto finance business model and chase which has more than 80 billion of auto finance outstandings in its portfolio as well as more than 29 million active mobile users for its application is not standing still with Chase auto directed plans to continue expanding the platform to non chase customers and to add trade and valuations into the portal. In addition, Chase auto chase says it will expand chase auto direct nationwide by year and large financial institutions often are challenged to innovate, let alone take a leadership position on a new technology. Chase has done that with Chase auto direct and we're pleased to recognize the bank with an auto finance Excellence Award for innovation in AI and I invite up to this podium Melinda Welsh Chief Marketing Officer of chase auto finance to accept this award, Linda. 15:29 Thank you very much. I'm very honored to be here to represent Chase, auto finance and our CEO Marco Donovan, who has been a real leader and innovating in this space over the past year. I'm also very proud to be part of the chase auto direct launch and getting that to market. It's been really exciting for us in the bank, and also to really thank our chase dealer customers who really are the backbone of what we do. So thank you JJ Hornblass 16:01 So the final award of the day is presented for leadership. And this year that award goes to Amy Martin, Senior Director of Standard and Poor's. For her nearly 25 years of service to the industry. We could give her a round of applause. So we know this to be true. There is not a single person who has for such a duration of time, dedicated herself to illuminating auto finance to investors. In April 1993, Amy joined SMP after stints at Barclays Bank and Chemical Bank. She had just finished her NYU business school education when she signed up with some paid from the earliest days that we've known Amy and this goes back to The mid 90s. She has exemplified one trait overall determination. Whatever she does, whenever she does it, she always brings a fierce dedication to do the best to do it to the best of her ability. I remember many, many years ago when the auto finance summit was just starting. Amy was a speaker. So we considered this a really great coup getting Amy to speak even back then. I recall discussing the fine points of the presentation logistics with her. She was meticulous what type of mic would it be? When would the questions start? How many questions would we allow? What if the questions were about this or about that? So we were so early into the some into holding the summit that the truth is I had no Answer to I didn't know what to say to her. But equally true. I don't think anyone in all the years was ever so precise and determined to do an exceptional job as Amy. But above all, above all, Amy's just about the nicest person you'll meet. And she's in New Yorker, well, plant is transplanted in New Yorker from Chicago. At the end, she's always got a smile for you. Now, all these years in, I would put I would put Amy up against anyone for her profound industry knowledge and intuition. She remains remarkably dedicated to auto finance, where auto finance people come and go on Wall Street, and where the number of women are, frankly, too few in the upper ranks of auto finance, Amy has remained and we all have Her a debt of gratitude. Amy, we look forward to many more years of your remarkable service to auto finance. Please come forward to accept this 2017 Auto Finance Excellence Award for leadership. 19:49 This is a tremendous honor for me and s&p Global ratings. I have covered the auto finance industry at SMP Since 1993, so more than 20 years. During that time, I have had a particular focus on this non prime or below prime finance sector. And it has been challenging rating transactions in the sector, given the contractions and negative headlines that this sector has weathered. But I have enjoyed learning about the auto finance industry and learning about your companies. Many of you invited me and my colleagues into your offices to teach us about your businesses and what made you unique, and to the for that I owe you a great deal of gratitude because you may have felt that at times, we were in touch arrogating you, and perhaps we were at times, but with that came a great deal of education for us. Also, throughout this period, we've tried to be as informative, objective and as balanced as we could be in our rating analyses and in our commentaries. And as such, it is truly, truly an honor to be recognized for the hard work and the coverage of this industry. And to me, it means a great deal to receive this award from the industry and from royal media. I have worked with JJ and Marcy since the 90s. And we've been through a lot together. So this is really an honor for me and thank you very much. JJ Hornblass 21:59 Thank you Me. So once again, please join me in congratulating all of our 2017 winners, as one person famously said, excellence is doing ordinary things extraordinarily well. Good luck doing ordinary things extraordinarily well in the coming year. My thanks again to clarity services for sponsoring this awards luncheon. We're all so appreciative. All three concurrent tracks reconvene at 2pm in their respective rooms at 330. I'll be sitting I'll be sitting here with Nathan, half the founder and CEO of the exciting auto finance, startup honker for a fireside chat, and I hope you'll join us for that. I urge you to check the mobile app for complete agenda details. We look forward to a great afternoon of sessions. Please enjoy the rest The auto finance summit. Thank you all. </div> [/toggle]
