Residual Insurance For IndirectLoans
SAN ANTONIO, Texas - (03/02/05) -- Security Service FCU, the largestindirect lending credit union, said it signed with Auto FinancialGroup to offer the company's Driving Sense online loan insuranceservice to auto dealers. Under the deal, Security Service willoffer AFG's Driving Sense program to its dealers in Texas andColorado. Driving Sense guarantees the predetermined residual valueof the vehicle through third-party insurance, eliminating thefinancial risk of an auto loan. The insurance allows credit unionsto capture loans that dealers previously sent to auto manufacturersor bank supported lease/balloon financing. Security Service makesan average of $100 million a month in indirect auto loans in Texasand Colorado.