Rate Reset has created a tool that allows credit unions to acquire auto loans and mortgages from other financial institutions.

Through LOANGen, consumers enter their current, non-credit union auto and mortgage loan details. From there, they click through to see how their monthly payments will change once they change their auto loan term or mortgage rate with the credit union, according to Keith Kelly, Rate Reset president and co-founder.

“What we found is that most consumers who refinance their car loans don't do it to reduce their interest rates but [to] extend their loan terms,” Kelly said.

Reducing interest rates might only reduce a payment by $15 or $20 but adding 12 months to the term can reduce the payment by $100 or more, he added.

LOANGen Auto features a speedometer-like display that changes to show how much a monthly auto payment will decrease as the consumer adds to the loan term along a sliding scale.

LOANGen Mortgage works almost the same away however, instead of a sliding scale of time, the tool presents a sliding scale of loan products to show how each might change the loan payment.

“One of the things that happens when rates drop is that the credit union is swamped with calls from members who want to find out how a lower rate could help them lower their payments. This tool will allow consumers to find that out without having to call the credit union,” Kelly said.

Each completed LOANGen session generates a lead for the credit union with the member's information that can be used to make a refinance offer, Kelly said.

Rate Reset began developing the tool after research showed that many credit unions did not have all the auto or mortgage loans their members' held, according to Kelly. LOANGen allows the credit union to acquire some of those loans more efficiently, he said.

The $1.6 billion GTE Financial in Tampa, Fla., has launched the Rate Reset Auto solution for its members, according to Kelly.

“We are always looking for innovative technology that puts our members in more control of their finances and Rate Reset accomplishes this for us” Joe Brancucci, president/CEO of GTE Financial, said.

The tool enables the credit union's members to lower their monthly payment online or on their phone in a convenient, safe and secure environment, he noted.

“We even had members use Rate Reset on Christmas day to save money on their auto loan,” Brancucci said.

Ben Psillas, CEO of Rate Reset, said the company is very excited GTE Financial and their members are happy with the ease, convenience and savings Rate Reset provides.

“Rate Reset was able to take a very manual process in auto refinancing for GTE Financial and fully automate it, thereby eliminating all back office cost and increasing member satisfaction,” Psillas said.

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Firm Launches Loan Acquisition Tool

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