Consumer Lending: Loan-by-phone, Internet Lending, Indirect Underwriting

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1 Consumer Lending: Loan-by-phone, Internet Lending, Indirect Underwriting LOAN-BY-PHONE Overview With growing competitiveness in the market, consumer demand for immediate, around-theclock financing and the challenge of improving lending efficiencies and income, many financial institutions are finding it more difficult to attract consumer business, penetrate target market and improve lending operations with limited resources and through traditional avenues. The LSI Solution The Direct Application Processing of Lending Solutions, Inc. offers financial institutions a cost-effective solution to increase their loan volume, availability and accessibility through seamless, 24/7 loan processing of consumer loans in the National Loan Processing Center (NLPC) of LSI. Through an exclusive telephone number or online application, consumers can quickly access their financial institution for a loan 24 hours a day, 7 days a week when they re interested in obtaining financing. Highly trained lending professionals transparently represent the financial institution to originate and process loans and cross sell, so a lender is always open to the possibility of added income and lending activity. Key Features 24/7 loan origination and processing of direct, prequal, platinum applications for homeequity and all types of consumer loans Decisions within 17 minutes Seamless, transparent service to consumers Knowledgeable, trained lending specialists Personalized, share-the moment sales techniques Cost-effective automated decisioning for instant approvals Expert underwriting that mirrors lending guidelines Wide range of delivery channels and application types Cross-selling of credit insurance, deposit and additional loan products System interfaces with many leading data processors Strategic alliances with select vendor partners Disaster recovery, business-continuation program Full- or part-time outsourcing options and multilevel pricing Online reporting center Optional Hot Transfer program to increase Close ratio

2 The Process LSI s direct loan origination process is designed to act as a transparent extension of a financial institution s loan department to provide personalized attention to borrowers: Client receives a dedicated, toll-free telephone number for direct loans Client program and underwriting parameters are integrated into LSI s loan-processing scoring model Client promotes 24/7 direct loan service via campaign materials Consumer calls the financial institution, selects designated prompt for loan application in the financial institution phone tree and is seamlessly transferred to LSI Through transparent, computer telephony integration, calls are answered by LSI s representatives in the financial institution s name. The representative enters the consumer s social security number and qualifies the application with a series of questions (i.e. Have you applied in the last 30 days? Are you applying individually or jointly? etc.) LSI calculates a quick estimate of a loan payment based on the selected loan product Basic applicant information is collected (i.e. address, date of birth, etc.); if profile data is provided to LSI, this information pre-populates, and the loan representative verifies it as correct The representative requests permission to run the credit report At this stage, LSI proceeds with a prequal application, platinum application or full application LSI builds the full, direct application with additional information (i.e. vehicle collateral, references, etc.) and further underwriting After approximately 17 minutes of real-time interaction with the borrower, a full, direct application is completed and transmitted to the financial institution for closing Hot Transfer: If the client is utilizing our Hot Transfer program, the borrower is transferred directly to the specified personnel at the institution at which time the closing details are arranged and the borrower is effectively taken off the market. This optional program allows the institution to increase the number of funded loans and provide better service. The Bottom Line Expanded Service and Accessibility Greater Lending Success! LSI s Direct Application Processing builds high-quality loan portfolios for clients by helping them expand the products and services they offer consumers.

3 INTERNET LENDING Overview More and more consumers are turning to the Internet to apply 24/7 for all types of loans from a variety of lending sources. Financial institutions that do not keep pace with this technology by providing online lending with around-the-clock decisioning support are losing valuable loan business to competing institutions. The LSI Solution The e-lending strategy of Lending Solutions, Inc. offers financial institutions a heightened, 24/7 lending presence on the Internet through a private-labeled Web application, automated decisioning and underwriting support. Through LSI s seamless connectivity, consumers can quickly apply for a loan via a client s Web site and receive a response automatically within 60 seconds or within five to 10 minutes if additional decisioning is required. Program Features Online application processing of consumer, mortgage and indirect loans Instant, automated decisioning and expert underwriting support Integrated scoring-model system compatible with CCN, DFS, FairIsaac, Experian and customized platforms Growing network of data-processing interfaces Automatic population of profile data Standard or customized online applications Marketing assistance and campaign materials Spanish Internet application available The Process To ensure transparent, cost-efficient connectivity and delivery, LSI works closely with financial institutions in establishing lending criteria and Web-site functions: A Web application is branded with a client s logo and colors Client program and underwriting parameters are integrated into LSI s loan-processing scoring model Client promotes 24/7 online loan service via the Internet and campaign materials (LSI marketing support available) Online applications are instantly approved in 60 seconds through automatic decisioning, or LSI underwrites non-automated loans with decisions ed or telephoned to applicants within five to 10 minutes, depending on applicant s preference

4 WebClose: WebClose is an optional e-lending enhancement tool available exclusively from LSI. The service allows the applicant to engage our loan officers in a real-time chat to discuss rate and payment options, payment protection coverage, and closing information. In addition to providing enhanced service to borrowers, the program speeds up the closing process, improves cross-sell penetration and reduces the number of loans that could be potentially lost to the competition. The Bottom Line More Ways to Reach Consumers Greater Lending Success! LSI s Internet Lending gives financial institutions more delivery options to secure loans online and improve lending efficiency and capabilities.

5 INDIRECT UNDERWRITING Overview In today s technology-driven lending marketplace, timing and convenience win consumers business in financing the loan. Consumers want quick, convenient access to auto loans at the point-of-sale. Dealers want fast, reliable turnaround time on applications. The LSI Solution The Indirect Underwriting Service of Lending Solutions, Inc. gives financial institutions the capabilities to compete effectively with other lenders in the market 24/7 availability, mirrored underwriting and fast turnaround times. LSI is staffed with expertly trained underwriters who are ready to decision auto loans not automatically approved. With LSI s underwriting expertise, dealers simply submit applications online or by fax and receive a decision back within an average of 15 minutes. Financial institutions can now compete on convenience, providing quick turnaround decisions for applications not auto-approved. Key Features 24/7 availability to consumers and auto dealers Online or fax submission of indirect auto-loan applications Automated underwriting for instant approvals On-the-spot decisioning for manually underwritten applications Turnaround times in an average of 15 minutes Immediate communication with dealers Dealer rehash of auto loans Experience with industry third-party indirect lending platforms The Process LSI s Indirect Underwriting process provides expert decisioning on consumer auto-loan applications: Client can receive dedicated, toll-free fax number for indirect service Client products and underwriting parameters are forwarded to LSI for underwriter education in advance of going live with the LSI service Client underwriting parameters are either integrated into LSI s proprietary loan platform for decisioning or LSI underwriters are trained on client s chosen third-party lending platform If fax submission is utilized, a dedicated fax number is given to dealer network and callforwarding switch is activated For online submissions, client decides on support level (full-time underwriting or afterhours and weekends) Client sets internal, auto-decisioning lending platform to forward to LSI for underwriting support or instructs LSI to work loan queue within third-party lending platform

6 LSI underwrites indirect-loan applications according to client policy and responds to dealers within an average of 15 minutes LSI forwards to client for closing all pertinent loan information immediately after underwriting Indirect Lending Platform Support LSI supports the third-party lending platforms of the industry s leading indirect lendingsoftware providers. These include the Aimbridge Indirect Lending program; CU Direct s programs CUDL 3, CUDL Complete, Workflow Manager, and DecisionApp; ILT s DILLS platform; Teledata Communications, Inc. s (TCI) DecisionLender platform; and Teres Solutions s SAIL platform (or c/o FLS Services, LLC). CU Direct, TCI, and Teres Solutions are strategic partners of LSI. Other platforms can be supported by LSI based on financial institution and/or third-party interest. The Bottom Line Compete on Convenience Added Advantage in the Marketplace! Indirect Lending gets a boost from LSI s around-the-clock availability, easy access and fast turnaround times to help financial institutions compete aggressively for consumer dollars.