YSG provides a full-service solution. YSG’s US-based call center handles all aspects of communicating with consumers, receiving and processing applications, presenting the Lender’s loan approval and structure information to approved borrowers, selling and managing back-end products, and ensuring that the Lender receives a complete application file for underwriting and loan file for funding. YSG also handles title perfection. Distribution of the loan funds can be fully handled by YSG or the Lender can elect to distribute funds to pay off the previous loan. At all times, YSG is providing a marketing and processing service; the Lender is the original lienholder on the Note.
Customized systems and industry-recognized tools ensure accurate, consistent prescreening is performed so the resulting applications comply with the credit criteria provided by the Lender. Our call center handles all aspects of communicating with the consumer and gathering the Lender’s required loan documents, using the Lender’s loan document forms. The results are similar to the process of acquiring indirect loans through an auto dealer, but with loans that can be expected to perform better than newly originated indirect loans. YSG’s sophisticated process to prescreen applicants results in an attractive Book-to-Look rate and high efficiency, low-cost underwriting for the Lender.
The process includes:
Leads come from third-party lead aggregators, custom YSG marketing campaigns, and partnerships with a variety of types of lead generators. YSG actively manages the blend of sources of leads to manage volume and application quality in order to meet Lenders’ goals and lending criteria. All marketing is designed to generate incoming calls and website contact from consumers. YSG only responds to those incoming contacts and does not make outbound telemarketing calls.
Application Processing Operations
Our call center follows up on leads and handles all aspects of application data gathering and processing either by secure, recorded phone calls or through an online application process. Regulatory-required disclosures and consents are obtained and maintained throughout the process.
YSG reviews soft pull credit data and other application data and matches the application to the appropriate Lender, based on the Lender’s lending program guidelines for credit, collateral, and loan structure, which are programmed into YSG’s proprietary application processing system. The Call Center agent discusses the refinance opportunity with the consumer, including a review of the likely loan structure (based on information already received), additional data and documentation that will be needed for the Lender, and options related to ancillary products that are available. Using the VIN, YSG’s system gathers 3rd party collateral valuation information based on the Lenders’ preferred method. In addition, the Call Center securely gathers standard and additional Lender-required stips, such as driver’s license, registration, and proof of insurance, from the consumer.
YSG’s application processing system evaluates each application against the specific criteria provided by each Lender active with YSG’s program. The system is programmed to ensure that the application is matched to the appropriate lender that is likely to approve the deal and provide the consumer with the best loan, either in terms of the lowest APR or based on specific requests by the consumer, such as a specific loan term.
With the consumer’s approval, YSG submits the application electronically to the Lender for underwriting. In some cases with a subprime lending program that doesn’t define the projected interest rate, YSG may, with consumer approval, submit to several Lenders for decisioning, but otherwise, the application is only submitted to one Lender.
YSG contacts the consumer by phone to share the Lender’s decision. For approvals, the approved terms are reviewed in detail. If the consumer elects to proceed with the loan, YSG’s system transfers the application and approval data onto the Lender’s loan forms and title documents, then delivers them through a secure online portal to the consumer for printing and signing. Electronic signing is an option when approved by the Lender.
During the call with a consumer, the Call Center agent presents back-end product options such as GAP coverage and Extended Service Contracts. By agreement, the Lender defines the requirements and maximum selling price for back-end products it is willing to finance. The products are presented as available options, with both the benefits and the costs and other risks disclosed. Call center agents are required to follow an approved script to offer the products and fully describe the associated benefits and costs. The full cost of the products, if the consumer elects to obtain them, are disclosed multiple times throughout the application, approval, and loan document execution processes. YSG handles all aspects of activating the back-end products with the product administrator.
Loan Funding and Title Perfection
When the signed documents are returned to YSG, the QC team reviews them for accuracy and completeness, then provides final loan packages to the Lender for funding. Upon receiving funding, YSG sends the payoff to the previous lienholder, activates any ancillary products, and perfects the title.