A New Risk Management Tool for Auto Loans

Tuesday, June 05, 2007
 
A New Risk Management Tool to Maximize Return on Investment of
Automobile Loan Portfolios
 
Proactive Collateral Recovery, Inc. announced today the availability of
the Proactive Collateral Recovery SystemT (PCRS). PCRS is a cutting-edge
risk management tool designed to maximize return on investment (ROI) of
automobile loan portfolios.
 
Benjamin Franklin once said: "Time is Money." Nowhere is this saying
more appropriate than for you, The Originator of the Automobile Loan.
All Automobile Loan Originators have a percentage of their Loans that
are in Default. 
 
The rate of Default is related to the structure of the Automobile Loan
Portfolio (ALP). Data from Equifax on life-of-loan default rates show
that the rate of Default can be as low as 1% when the ALP is composed
entirely of debtors with FICO Scores >800 or as high as 78% when the ALP
is composed entirely of debtors with FICO Scores < 500
 


 
As the automobile is the collateral for the loan, the usual recourse for
a defaulted loan is the recovery of the collateral by repossession. This
requires the Lien Holder to employ a Skip Tracer/Collateral Recovery
Agent to repossess the collateral.
 
Debtors in Default are frequently evasive, and actively attempt to
prevent recovery of the collateral. Therefore, successful collateral
recovery with traditional collateral recovery methods can take days,
weeks or even months to accomplish.
 
"Time is Money" and the bottom lines is this: Minimizing the Time to
Recovery of your Collateral Maximizes your Return on Investment.
Sun Tzu said: "Every battle is won before it is ever fought." Proactive
Collateral Recovery, Inc. embraces Sun Tzu's principle and believes:
"ROI is maximized on every loan before it is written."
Proactive Collateral Recovery, Inc. shows you how to use 21st Century
technology to maximize your Return on Investment by employing the PCRS.
Here is how PCRS works: The PROCORGPS T is the brain of the PCRS.
Internally a Global Positioning System (GPS) receiver and Global System
for Mobile Communications (GSM) modem are integrated onto to a single
board, and controlled by a common microprocessor. The PROCORGPS T
provides affordable, accurate and precise worldwide vehicle location
capability.
 
The PROCORGPS T is hard wired into the vehicle at the point of sale and
operates off the vehicle power. It includes a rechargeable battery for
continued position reporting if vehicle power is disconnected. PROCORGPS
T has state of the art enhanced GPS sensitivity that permits vehicle
location in areas where conventional GPS may not work. The PROCORGPS T
is easily concealed to prevent tampering or unauthorized removal. It can
be removed from the vehicle quickly and easily for repeated
installations. 
 
When a debtor defaults on a loan and the Lien Holder authorizes
repossession of the collateral, Proactive Collateral Recovery, Inc.
"pings" the PROCORGPS T unit to ascertain the accurate location of the
collateral with our proprietary GeoMapping T technology. An authorized
Collateral Recovery Team is then vectored to repossess the collateral.
Proactive Collateral Recovery, Inc. returns collateral to Lien Holder
usually Within 24 Hours of Authorization for disposition. 
 
Registered Clients are granted access to, and effectively manage their
PCRS loan portfolios with our proprietary Client Management Application
T (CMA). The CMA is accessed via the internet and allows our Client's
to: 1) Enter, edit and delete PROCORGPS T equipped vehicles from their
portfolios; 2) Issue Right to Cure Letters (for states requiring notice)
and 3) Issue prompt and trouble-free Repossession Authorizations.
 
As the Primary Objective of collateral recovery is to repossess the
collateral from the debtor in default and return it to the Lien Holder
immediately upon issuance of the Repossession Authorization, expeditious
collateral recovery maximizes the probability that the In Default Loan
can be converted to a Loan in Good Standing. 
 
Even if the In Default Loan cannot be converted to Good Standing, PCRS
assures expeditious recovery of the collateral thus minimizing the loss
of ROI to the Lien Holder.
 
Compared to traditional or "Reactive" collateral recovery methods, PCRS
offers substantial savings of time and effort on collateral recovery for
Lien Holders and maximizes ROI in a cost-effective package.
 
For more information on the Proactive Collateral Recovery System and to
view the Client Management Application T DEMO please visit Proactive
Collateral Recovery, Inc. at:
 
URL: http://www.maxmiroi.com