Equifax Inc., a global information solutions company, announced that its auto lending customers will now have the added benefit of direct access to Black Book vehicle value data and loan-to-value (LTV) model data.
By incorporating Black Book data with differentiated Equifax data, lenders can better evaluate LTVs at origination, migration of LTVs, collateral risk and layered risk.
Additionally, using Equifax and Black Book data gives lenders additional tools to monitor evolving LTV ratios over time and better identify which vehicles present the most risk and growth potential. This enables lenders to more effectively forecast where losses may be more likely to occur and adjust lending strategies as a proactive countermeasure.
Beyond gains in portfolio management, the solution also enables lenders to better manage their:
- Ongoing account management strategy (by more accurately targeting who to call, when to call and how often).
- Remarketing and recovery (determination of auto value to justify repossession).
- Pricing strategy (to determine which rate/term/LTVs are most appropriate for individual customer/collateral combinations).
- Competitiveness (by knowing what the competition is buying and by what credit segment).
“Through our relationship with Equifax, we are aligning two of the most trusted sources of data in the industry to provide essential insights for succeeding in today’s market," said Jared Kalfus, VP of Data Licensing. “Our solution streamlines pivotal analytic processes, allowing customers to work more efficiently and effectively.”