Loan Portfolio Servicing (LPS) has begun its full-scale launch as a national third-party servicer of subprime automotive loans. LPS specializes in helping start-up finance companies and those with small- to mid-sized portfolios.
“When the last economic downturn hit, I knew it would just be a matter of time before the capital markets opened back up and players started to jump back in to the nonprime lending arena. So I formed LPS during the down market,” said Scott France, president of LPS and Caprock Auto Remarketing (LPS’ sister company). “We wanted to be ready, tested and proven when the money started flowing again and startups began looking for an alternative to building their own brick-and-mortar servicing platform.”
“Over the past several years, our belief that the market would change has come true. We’ve observed that many lenders and their investors would rather focus on building and expanding their origination platform, and outsource loan servicing until they grow to a size where it makes sense to bring servicing in-house,” France said.
“As a third-party portfolio management company, we allow the newer, smaller originators to take advantage of our large infrastructure and expertise without incurring the high overhead costs of developing their own platform,” he said.
LPS has actively serviced loans since January 2011 and is currently managing approximately $50 million in auto portfolios. The company used the time since start-up to build its platform and prove out its business model ahead of today’s full-scale launch.
“After almost two years of technology and process development and implementation, we are confident that our services will enable finance companies and their investors to maximize portfolio returns. Now the time has come to introduce LPS to more clients,” France said.
The company welcomes clients who want to leverage LPS’ economies of scale, as well as its decades of experience. France is an industry veteran with more than 25 years of loan servicing under his belt at Triad Financial, AmeriCredit and WorldOmni. The members of his team are also seasoned veterans of the industry, having worked with France throughout their careers.
Clients of LPS include startup auto finance companies, banks, credit unions, dealer groups and investors. Each client receives daily customized reporting as well as real-time access to portfolio performance data.
“We tailor our approach to each client, so it doesn’t matter whether you have five loans a month or 500. Either way, you will receive responsive service and highly effective servicing,” France said.
Company representatives will be available to discuss LPS’ services at the 2012 Auto Finance Summit Oct. 22-24 in Las Vegas, Nev.
Loan Portfolio Servicing (LPS) specializes in the management of subprime auto loans, with additional expertise in prime accounts.
The privately owned, boutique firm provides its clients with a top-tier experience in title and records management, account administration, customer care, collections, loss mitigation, repossession management, and loss recovery. LPS partners with its sister company, Caprock Auto Remarketing, for remarketing management. LPS has approximately $50 million in managed receivables and is headquartered in Fort Worth, Texas.