Huffington Post Reader Question
I have a student loan with Navient (formerly Sallie Mae). A relative of mine has come into some money and has offered to pay on the load (in full), however, they have urged me to try and negotiate a settlement deal.
Having spoken to my friends at Navient, I was informed by three separate people there, that one cannot negotiate on Federal Loans. Is this true? I have read about cases where the debtor was able to negotiate a pay-off which was less than the principle amount of the loan.
Can you please advise me of any options that I may have available to me to try to decrease the amount of the loan in order to settle. Alternatively, despite whats being bandied about by the scare-mongering corporate-owned media, is there a statute of limitations on student loans, and can they be discharged in bankruptcy. (Im from VA, incidentally). Do you know of any new legislation that may change the way in which student debt is dealt with in the future (ie freezing of interest rates, or just clearing the path of old loans, etc.)?
Thank you for your time, and I look forward to your response.
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Great Questions. Thank you for asking.
There is a clear answer here, but with a disclaimer.
I have never seen Navient or anyone settle a federal student loan that is current. The reason is because there isnt really any reason for the government to do that. They can garnish Social Security, intercept tax refunds, have the Department of Justice sue you, administratively garnish your wages, and there is no statute of limitation on those loans.
You see, there just isnt much of a reason for them to settle for less.
That all being said, I have seen federal student loans settle for less than the amount due in a very limited cases.
I looked at federal student loans where people had been sued by the Department of Justice. Getting sued turned out to be a favorable outcome for people looking for a break and participating in the case.
Of the random cases I reviewed, those people that did not stick their head in the sand and used the suit as an opportunity to settle or get better repayment terms, did. Read my review of this cases, here.
I also previously looked at federal student loans that had been included in bankruptcy cases. These were typically people that had really good stories about why repaying their student loans was a real burden. In general the people were typically lower income and had some sort of mitigating medical condition or situation.
In those 2012 cases reviewed that had good data to judge, 47% received a full discharge, 12% settled for less than the balance, and 21% wound up with a better repayment plan. You can see this story for all of the details.
These results are somewhat similar to what Iuliano found in this previous study.
According to that study of 2007 data, 38% received some sort of reduction or elimination of their student loan debt.
Regarding the statute of limitations, the surprising answer is that student loans outside the statute of limitations can be discharged if they are private student loans. If you just have not paid on a private student loan and the statute of limitations has expired, then it is eliminated like any other loan in a consumer bankruptcy filing.
Until Congress acts with some meaningful help for private student loan holders, it is becoming a viable option for private student loan holders in a jam to just stop paying their private student loans. While it will land those folks in collections and a risk of being sued, private student loan servicers, like Navient, are settling those loans. It seems the majority of private student loan holders in default are not being sued. Waiting out the statute of limitations can be emotionally tough, but a reality.
It really doesnt matter what legislation might be on the table. Every year there is this or that new proposal and none of it matters unless it gets passed. With a strong Republican Congress in our future, the chances of that happening are slim. Keep in mind it was a strong Republican Congress that changed the law to prevent the discharge of private student loans in bankruptcy.
Federal loans have some great repayment and forgiveness options now. We dont need to wait around for those. Want to know what they are, click here.
Before I go I wanted to leave you with three easy action items you jump on right now to address your situation. Just click here.
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Consumer loans 29%
Source: September 30, 2014 Medallion Financial Corp. 10Q.
The stability of medallion markets remains critical to Medallion Financials financial health. We believe its entire tangible book value is at risk of being wiped out by write-offs of potentially 100% of its managed medallion loan portfolio. In addition, with borrowing costs on acquired deposits averaging less than 2.5%, calculated from Medallion Bank FDIC Call Report filing (overall borrowing costs for Medallion Financial reported as 2.68% in Q3), interest rate risk and compression of interest rate spreads is also a meaningful risk to Medallion Financials earnings and cash flows.
Capital Allocation Policy Difficult to Comprehend
Capital allocation has been inexplicable in recent years for Medallion Financial. In the last three years, the Companys cash operating earnings have not been sufficient to cover the dividends paid. Of the $54 million of dividends paid since the end of 2011, 40% represented return of capital (see discussion below) or payout in excess of earnings in that time. During this same period the Company was also buying back shares and issued $85 million in two secondary offerings, an entirely inefficient, circular shuffling of investor capital. The aggregate cost of the two secondary offerings was $5.3 million. The dividend should be reduced to a sustainable level based on cash earnings, in our opinion, and raised in line with earnings growth going forward. We do not believe the headline 8.5%-9% dividend yield or the share repurchases are understood by many investors, in this sense, and with fundamentals breaking down in its core business, we do not see how the Company can possibly grow its cash earnings to levels actually covering these distributions. In short, the current dividend and share repurchases are not sustainable, in our opinion. Issuing more equity to cover cash shortfalls will be a lot harder as the deterioration of medallion markets continues to play out.
Consumer Loan Market – Chasing Yield with Credit Risk Mounting
If medallions become worthless in NYC, Chicago and Boston with unlimited supply of for-hire vehicles becoming the new normal, we believe what happens in the rest of Medallion Financials portfolio will not alter the inevitable outcome – the Company will suffer massive write-offs that will wipe out shareholders equity. But an examination of the diversification strategy suggests rising risk as well. Medallion Financial has set a strategic course to diversify its loan portfolio by allocating more capital to consumer loans (consumer loan balance is up 35% in twelve months compared to a 6.5% increase in medallion loans) and commercial loans.
Interest rates earned in consumer lending at Medallion Bank average near 3X and 4X those of medallion financing for Medallion Financial and Medallion Bank, respectively. Medallion Bank averaged 14.9% interest on its $462 million Consumer loans portfolio in Q3 2014, and has increased the size of that portfolio from $341 million a year ago, in contrast to larger banks reporting flat to lower consumer loan balances in that period. Clearly, Medallion Bank is finding high-margin opportunities to lend money to consumers, and the question is at what risk? Medallion Banks consumer loan portfolio (and smaller commercial loan portfolio) is far riskier than medallion financing has been historically. The growth of the consumer loan portfolio has brought greater credit risk to the enterprise, and the benefit of reduced concentration risk is small in comparison.
Exhibit 6 Medallion Financial Corporation Loan Portfolio at September 30, 2014
(click to enlarge)
Source: September 2014 Medallion Financial Corp. 10Q.
Household and Corporate Deleveraging has been Shrinking Demand for Credit
The private sector and consumers are deleveraging and real household income is in a third year of near-zero growth. Consumer loans are also far more correlated with broader capital market trends than medallion loans. Not only is median household income not growing in real terms (notwithstanding the effect of plunging gasoline prices on CPI in the last several months), it hovers near 1996 levels. US household debt has declined without interruption since the financial crisis from 98% of GDP in the first quarter of 2009 to 81% at the end of April 2014. Non-financial corporate business debt has also been declining from a cycle-high of 45% of market value in 2009 to below 38% at the end of April. A smaller consumer-borrowing universe is producing greater competition among banks seeking to grow earnings. As a result, according to the Office of the Comptroller of the Currency in its 2014 spring report, underwriting standards appear to be easing, volume of new-issue covenant-lite leveraged loans are surging. Remembering Minsky, market stability begets riskier market behavior and the attendant rise in instability is often ignored or not perceived until the instability reaches a critical state and markets are disrupted.
How Risky are Consumer Loans Yielding 15%?
Consumer loans generally have lower and less volatile default rates historically when compared to credit cards, mortgages and commercial loans, but Medallion Bank is earning interest typical of hard loans, a segment to which borrowers resort when conventional lending channels are not available – by definition, a riskier lending universe. Moreover, just as reduced lending standards and artificial inflation of housing values ended the multi-decade streak of rising property values with a crash, the unprecedented monetary policy of the Federal Reserve is having a perverse effect on risk assets, including consumer loans. Hence, historical consumer delinquency rates may not hold up in the uncharted territory created by unprecedented easy money. The FICO score breakdown of the Medallion Bank lending universe is not published, but we believe multiple factors point to the likelihood that Medallion Banks rapidly-expanding consumer loan portfolio bears significant credit risk (and rising at least over the last twelve months). These factors include:
middot; Average aggregate interest rates near 15% in Q3 when the US 10-year bond is yielding 2.5% (less than half its historical average), suggests a lower credit-score borrowing universe.
middot; The 35% increase in consumer loans may be fueled by declining lending standards at Medallion Bank:
o Bank of America, Wells Fargo and Citi Group (industry proxies) all have greater loan portfolio diversification (average roughly 15% exposure to comparable consumer loans), earn significantly lower interest rates on those loans (even credit card interest is nearer 9-10%) and reported lower consumer loan balances in the last twelve months.
o A year-over-year decline in average rates in the consumer loan portfolio of 1% when the US 10-year is off only 0.25%, a potential indication of aggressive lending – offering lower rates without a commensurately lower borrower risk profile.
o US households continue to deleverage, as evidenced by declining debt as a percentage of GDP, suggesting the overall consumer lending opportunity set has been steadily declining.
The OCC warnings suggest many banks have resumed riskier lending practices in order to grow profits in the short term, and we believe Medallion Financial, through Medallion Bank, is participating in this trend. The downside catalyst is not as readily evident as that in the medallion loan space, but consumer loans are another area increasing Medallion Financials risk profile and yet the Company continues to pursue it aggressively.
Two Secondary Offerings Since 2012
Medallion Financial executed a 2.9 million shares secondary offering in the fourth quarter of 2013 priced at $16.40/share (peak daily close was $17.74/share, at the end of November 2013) as well as a 3.5 million shares secondary in May 2012 at $10.72. The Companys press releases for the respective closings suggest the cost to execute these offerings, commissions, underwriting discounts and offering expenses, was $2.9 million and $2.4 million, respectively.
Dividend is not Being Covered by Cash Earnings – 40% of Payout Since 2012 a Return of Capital
As mentioned, Medallion Financial is bound to pay out 90% of its pretax income as a regulated investment company and remain exempt from US federal income tax on any gains, investment company taxable income or net operating income. The Company is paying a dividend of $0.96/share, yielding between 8.5% and 9% on the recent share price trading range ($10 – $10.75/share) that warrants greater scrutiny by investors. We do not believe the difference between return of capital and return on capital is well understood based on market commentary on Medallion Financials dividend yield. The latter is sustainable and part of ones total return on investment, the former is not, making the headline dividend yield of Medallion Financial misleading in this sense. Moreover, the Company has doubled down on this financially unsustainable trend through its share repurchase program. High dividends and share repurchases are justifiably welcome by investors generally as bullish signs of Board and management confidence in their business and share price. But when this spending has to be financed through secondary offerings, $50 million only twelve months ago and another $35 million in May 2012, borrowing and asset sales, they amount to slow liquidation of the Companys assets, and the signal raises serious questions about prudent allocation of scarce capital by the Board of Directors and senior management.
In 2014 (through September), 2013 and 2012, respectively, 23%, 46% and 53% of the dividend was actually a return of capital – liquidating or borrowing against assets, some of which were recently gathered through the second secondary offering since 2012, and distributing the proceeds to shareholders, thereby reducing each investors cost basis in the stock. A cumulative 40% of the $54 million in total dividends paid out since and including 2012 was return of capital. These amounts are clearly labeled Return of Capital on the Consolidated Statements of Changes in Net Assets. That means of the dividends paid out since 2012, $22 million has been nothing more than drawing down assets and sending the proceeds to investors, from whom $85 million was sought and received during the same period.
The Companys cash earnings have not covered the dividend in any of the last four years. A glance at the book value of Medallion Financial since 2011, up over 60%, gives a pretty favorable first impression of value creation, but when one understands that almost 120% of that increase was directly attributable to secondary offerings ($85 million) and unrealized, non-cash appreciation in passive investments ($37 million), the unsustainable nature of payout policy becomes obvious (see Exhibit 7). Medallion Financials core operation is earning a spread between the money it borrows and the money it lends. Passive, non-cash, unrealized gains are not core, operating gains even though they may one day be realized. A prudent payout policy would be to undertake special dividends if and when such gains are realized, rather than paying out cash not generated by operations for four straight years. But for selling more shares to the public, borrowing or asset sales, Medallion Financial would not have been able to pay this dividend or repurchase shares dating back at least to 2011.
Exhibit 7 Medallion Financial Distributing Cash from Borrowings, Asset Sales and Secondary Offerings 2011-2014 (click to enlarge)
Companies that pay out more than their cash earnings starve the business of growth capital, requiring the periodic issuance of shares on the secondary market to pay the dividend shortfall, share repurchases and, with what is left, fund growth. That has been the Medallion Financial pattern.
Weaker operating results, obviously, will create incrementally greater pressure to cut the dividend. A high dividend yield, especially in a yield starved capital markets environment, creates support for share prices, particularly among retail investors, who may not realize a high yield is the markets signal that the dividend is not sustainable.
Share repurchase, and retirement, is another mechanism for returning cash to shareholders. Medallion Financial has had an active share repurchase program in place since 2003, and in July 2014, the Board of Directors increased the authorization to $20 million shares ($16.8 million remaining as of December 8, 2014). Share repurchases are commonly used to ensure stock is available for employee stock option plans, as well as a tool to support the stock price and signal the market that management is bullish on a companys operating and share price prospects. Medallion Financial management has been publicly vocal about its share repurchase activity in recent weeks, issuing 8Ks with regularity, presumably to alert investors of its attempts to support the share price. It is hard to argue with the optics of a company treating its own stock as the best investment opportunity for scarce capital. But a company into a fourth year of having to finance a dividend exceeding its cash earnings, and less than twelve months removed from issuing $50 million worth of new shares, a share repurchase, like the dividend itself, is not sustainable and definitely not the most prudent allocation of scarce capital, especially when shareholders equity is threatened by competitive changes in the core business – the latter conclusion management obviously disputes.
Tangible Book Value as Source of Share Price Support
Medallion Financial shares are trading near tangible book value of $10.85, including $1.94/share in the book value of 159 Chicago medallions purchased and held on the balance sheet that are particularly vulnerable to near-term impairment. Share price will draw support from this basic valuation parameter until investors start to worry about write-downs or earnings vulnerability. Our analysis of the medallion market suggests, barring a reversal of the status quo trends – continued presence of unconstrained new taxicab-equivalent supply in formerly supply-constrained medallion markets and effectively no state, local or legal action to push the existing new supply back out of markets or, eventually, keep it out of markets still protected (eg, street hails) – demand for medallions will disappear and prices will go to approximately zero. Medallion Financials total tangible shareholders equity is $273 million, and it has $480 million of direct medallion price exposure. Medallion Bank (carried at $127 million) has $147 million of bank equity and medallion loans of $386 million. What happens to loans made by Medallion Financial and Medallion Bank at 75% LTV for new loans (and some at 90%), or even 40% LTV on a weighted average basis for just the former (Medallion Bank LTV is not published, and we suspect higher than 40%) when the V drops to something between a small fraction of values observed in recent years and zero? They get written down (less fair value of any additional collateral or personal guarantees attached to individual loans) and Medallion Financial does not have the capital to withstand such an outcome.
Loan to Value (LTV) in Taxicab Medallions
As indicated, Medallion Financial is exposed to $689 million in medallion-secured loans, $303 million of which are included on the balance sheet, and the balance are held by Medallion Bank, off-balance-sheet. Medallion Financial disclosed the LTV on its medallion loan portfolio to be 40% at the end of September in a range from 0 – 96%. LTV for Medallion Bank is not disclosed. Our spot check of 2014 medallion loans made by Medallion Financial identified two Boston medallion loans originated in 2014 at ~90% LTV, and three other Boston medallion loans near 75% (the industry convention). That is 5 out of the 14 loans made in Boston during the first nine months of 2014 now below or nearly-below par based on street asking prices on medallions. One of three medallion loans in Cambridge, Massachusetts was made for $431,000 or 80% loan to purchase price of $540,000. Street asking price in Cambridge is as low as $400,000 currently. If spot checks indicate one third of original loans made in Boston and Cambridge occurred at 75% to 90% LTV, it stands to reason that Medallion Financial offered those terms more broadly across the original loan portfolio in 2013 and 2014. It is critical to understand that a portfolio LTV of 40% is a weighted average. It certainly suggests that medallion values have to drop a lot further from current levels before most of Medallion Financials medallion loan par values are at risk of write-downs, but significant collateral value cushion for one loan does not protect another loan from being written down. Each loan stands alone and those below par have to be written down. We expect to see a rise in LTV, rising nonaccruals (for underperforming loans) and write-downs beginning within the next two quarters.
In an interview published in February 2014, Medallion CEO Andrew Murstein stated, The taxi business is as strong as its ever been, despite Uber, because people in major cities will still go and stick their hands in the air. Uber is nothing more than a terrific black car company. By June, the Company added ride sharing to its 10Q risk disclosures. But then in December, Murstein was at a loss to explain the markets concern over ride sharing relative to his Company, We cant understand why the stock is trading down. This is a striking example of hubris, and helps explain why the company recently made medallion loans at 90% LTV and is buying medallion loan portfolios from other lenders, despite three years of market intelligence demonstrating historically-impregnable entry barriers in the ridesharing market have been materially breached by the smartphone-based companies. Uber has claimed double-digit market share, likely in excess of 20%, in only three years since being launched in Medallion Financials biggest medallion-lending market NYC. The CEO dismissing Uber as competitively irrelevant is quite remarkable when, in fact, ride sharing represents an existential threat to an asset class representing collateral on 53% of Medallion Financials loan portfolio.
Medallion Financial turned over 70% of its publically disclosed loan portfolio since the beginning of 2013. Certainly much of that activity was in refinancing, but total medallion loans increased modestly in 2013 and are up 6.5% through September (up 9% through June before pulling back modestly). As indicated, the Company does not disclose the LTV for Medallion Bank. As medallion values consistently rose 12% – 15% per year in NYC between 2007 and 2013, for instance, the overall portfolio LTV declined significantly. But loans originated in 2012 and 2013, near peak values, are far more vulnerable to the declines now being observed.
Medallion Financial will soon have to incorporate lower medallion values into its LTV calculation, perhaps as soon as its Q4 2014 filings. As that ratio rises, the perception of risk associated with the stock will rise with it. Its a long way from 40% LTV to 100%, but remember these are weighted averages. Every individual loan value below par will have to be written down. As indicated, Medallion Bank may have even less cushion, which means the write-downs there could be larger sooner. But the end game is the biggest concern – a potential 100% value surrender for medallions in Chicago, New York and Boston, even accounting for fair value of any additional collateral or personal guarantees attached to individual loans, means Medallion Financials book value turns negative. The comfort provided by a headline LTV of 40% in this loan category does is false. The risk here is existential.
Borrowing Costs and Margin Compression when Rates Rise
According to Medallion Financials 10Q Notes, Medallion Bank began raising brokered bank certificates of deposit during 2004, which were at our lowest borrowing costs. Low costs indeed. Medallion Banks average interest expense over the last six quarters has been 2.4%, including the amortized portion of capitalized brokers fees. Brokers fees average 0.2% on deposits raised and are amortized over the life of the respective pools of deposits raised. Another risk cited in the OCC spring 2014 report is that of extrapolating historically low borrowing costs during a banks strategic planning and portfolio construction process. As noted by the OCC, some banks have reached for yield to boost interest income with decreasing regard for interest rate or credit risk. Banks that extend asset maturities to pick up yield, especially if relying on the stability of non-maturity deposit funding in a rising rate environment, could face significant earnings pressure and potential capital erosion depending on the severity and timing of interest rate moves.
The average maturity of Medallion Banks loan portfolios in medallion and consumer loans is unknown, but Medallion Financial has reduced the average length to maturity in its medallion loan portfolio. If the Bank has done the same, the interest rate risk cited by the OCC would be less of a concern. That is a significant if however, given the dramatic rise in consumer loans over the last twelve months despite the challenging supply demand trends in that category. We would not be surprised to see longer average maturities for both medallion and consumer loans at Medallion Bank versus Medallion Financial as part of the cost of winning business in a shrinking credit environment. In any event, the spread Medallion Bank and Medallion Financial have enjoyed in recent years across the respective loan portfolios is vulnerable to significant decline as interest rates rise, even if maturities have been shortened.
We do not whimsically suggest public companies with long histories of financial stability and outstanding shareholder returns are at risk of financial collapse. Nor do we entirely fault Medallion Financial management for failing to appreciate the seriousness of the threat to their business after decades of muscle memory lending against an asset class without rival. But the medallion market is undergoing legitimately catastrophic change with the introduction of unconstrained supply brought by ride sharing. It has become clear that the one factor that might have at least mitigated the impact, legislative or legal action blocking the upstarts from flooding markets with new supply, has, and in our estimation, will continue to opt for acceptance and regulation rather than attempt to eliminate. Putting the proverbial genie back in the bottle is unlikely. One does not have to speculate as to the impact of eliminating enforced caps on taxicab supply, the precedents exist in Minneapolis, Milwaukee and San Diego. Values of medallions or license/permit equivalents did not drop 10%, 30% or even 70% hellip; they went to zero (in the case of San Diego, to the $3,000 cost of the permit). Public comments already presented by Medallion Financial President Andrew Murstein bookending calendar 2014, sandwiched around a perfunctory risk citation buried in SEC filings beginning in Q2 2014, suggest Medallion Financial remains in denial about the seriousness of the threat to earnings, dividends and shareholders equity:
Uber is nothing more than a terrific black-car company. February 28, 2014
In the event Street Hail Livery licenses and increased competition from ridesharing and car service apps materially reduce the market for taxicab services, income from operating medallions and the value of medallions serving as collateral for our loans could decrease by a material amount. 10Q beginning June 30, 2014
We cant understand why the stock is trading down. December 1, 2014
The market dynamics for medallions, and less importantly, consumer loans, represent a multi-front problem for Medallion Financial:
middot; Little to no growth for medallion loan origination in the near-term, representing 53% of the total loan portfolio, soon followed by initial write downs of medallions and medallion loans and a dividend cut.
middot; Rising risk for a consumer loan portfolio representing 36% of the total managed loan portfolio and up 35% in last twelve months.
middot; Covenant and capital requirement violation risk at the parent and bank subsidiary levels, respectively.
middot; Acceleration in number of underperforming loans followed by defaults and full write-offs as asset class is wiped out altogether (unless cities and states reverse policy course).
middot; Potential for entire Medallion Financial book value to decline into significant deficit.
We believe senior management will continue to artificially support the stock through its authorized share repurchase program (the Company represented 39% and 25% of the share volume on December 16 and December 8, respectively). Seeking to reassure investors and project confidence is understandable, but Medallion Financial needs to reassure investors by way of prudent strategic action. To the contrary, management has and continues to misallocate scarce capital in the face of market-based existential threats, evidenced by:
middot; The inexplicable re-shuffling of shareholders capital:
o 40% of dividend payouts were not covered by earnings and constituted return of capital since the end of 2011 and
o Share repurchases transferred even more assets to shareholders during same period yet
o Two secondary offerings totaling $85 million and costing $5.3 million were required in same period to absorb the cash shortfalls and gather growth capital from capital remaining.
middot; The acquisition of medallion loan portfolios rather than disposition of them and general ambivalence as the core loan asset class is falling apart.
middot; Chasing hard-loan-equivalent consumer loan business when warning signals are flashing about risk therein.
There is little the Company can do to stave off the inevitable, at this point, other than a strategic about face and sell-off of medallion loans – if it can find buyers. The only question remaining is how long will it take for the full reckoning to run its course. In the end, we expect acceptance and regulation, including whatever ends up left of the hail segment, rather than a practically unenforceable attempt to eradicate smartphone-based ride sharing commerce from the streets, against the will of the population and long-suffering drivers. Allowing markets to determine when new supply is necessary in lieu of hard caps will render medallions superfluous and valueless.
Author: James F. Hickman – see his profile at: www.linkedin.com/in/jamesfhickman/
Gordon Gossage contributed to this report – see his profile at: www.linkedin.com/in/gordongossage/
For comments or questions, please email email@example.com
To download PDF version: www.hvmcapital.com/taxi.pdf
This publication is provided for information purposes only. It should not be seen as a recommendation to buy or sell securities of Medallion Financial Corporation, or to take or refrain from taking any other action. All statements of fact contained in this publication were obtained from Medallion Financial Corporation through its filings with the SEC, websites and press releases, or were obtained from other publicly available sources. The information used and statements of fact made in this publication have been obtained from sources considered reliable, is provided as is without any warranty, express or implied. The authors neither guarantee nor represent the completeness or accuracy of such information or statements.
All statements of opinion represent the authors personal views about Medallion Financial Corporation and its securities. Investors should carefully consider their own investment risk. This publication does not purport to take into account the investment objectives, financial situation, or particular needs of any particular person. This publication does not provide all information material to an investors decision about whether or not to make any investment in Medallion Financial Corporation . The authors of this publication and their affiliates will from time to time have short or long positions in, act as principal in, and buy or sell, the securities of Medallion Financial Corporation. As of the date of this publication, the authors, or one or more affiliates, have a short position in the common stock of Medallion Financial Corporation, directly or indirectly including through one or more derivatives.
 Medallion, license and permit are used interchangeably as there is no legal distinction.
 LEAKED: Internal Uber Deck Reveals Staggering Revenue And Growth Metrics, Alyson Shontell, Business Insider, November 20, 2014.
 Local taxicab operating sources.
 Taxi drivers say Uber threatens their livelihoods, Martine Powers, Boston Globe, May 22, 2014.
 Yellow taxi industry loses 58 prospective buyers in auction for medallions, Daily News, Jennifer Fermino, December 10, 2014.
 Local NYC medallion brokers and medallion owners.
 Multiple Chicago taxicab medallion brokers.
 Local Boston medallion brokers and owners.
 Local Cambridge medallion owners.
 Local Philadelphia medallion brokers.
 Ubers Global Expansion in Five Seconds, Ellen Huet, Forbes, December 11, 2014.
 Based on published NYC Taxi and Limousine Commission fee schedules and a $70 billion NYC budget.
 Federal Election Commission filings, per Hamilton Place Strategies, hamiltonplacestrategies.com.
 Minneapolis Taxi Owners Coalition, Inc. v City of Minneapolis, US District Court, District of Minnesota, Civil No. 07-1789, October 29, 2007.
 Minneapolis Taxi Owners Coalition, Inc. v City of Minneapolis, US Court of Appeals, 8th District, No. 08-1789, July 14, 2009.
 Ghaleb Ibrahim v. City Of Milwaukee, April 2013, Source
 Driven to Despair: A Survey of San Diego Taxi Drivers, San Diego State University and the Center on Policy Initiatives, May 2013.
 Rogers Truck Line, Inc. v. United States, 14 Cl. Ct. 108, 112 (1987)
 Taxicab Service Association, et. al. v. Michael R. Bloomberg, as Mayor of the City of New York, et. al. (Supreme Court of the State of New York, 2012).
 Estimated based on leaked Uber presentation published by Business Insider, later comments by Uber sources on revenue run rates (Source), divided by NYC taxicab market revenues calculated from TLC 2014 Annual Report.
 Chicago issues ride-sharing licenses to Lyft, Sidecar, Chicago Tribune, John Byrne, November 18, 2014.
 Semiannual Risk Perspective, Spring 2014, Office of the Comptroller of the Currency.
 Federal Reserve Bank
 Baton Moise Cab Inc., OKE Auguste Cab, Inc., God-Will, Inc., Johnson Holding, Inc., Loren Cab, Inc. and Eureka Cab, Inc., respectively, source Carriage News, UCC website and Medallion Financial SEC filings.
 Industry sources.
 If Uber Is Killing Taxis, What Explains the Million-Dollar Medallions?, Bloomberg Businessweek, Technology, Joshua Brustein and Caroline Winter, February 28, 2014.
 As Uber rises, yellow-taxi-medallion stock plunges, Crains New York Business, Andrew J. Hawkins, December 1, 2014.
 Company 8K and Bloomberg.com.
Natrol Inc., a Chatworth maker of vitamins and supplements in bankruptcy, has sold most of its assets to an Indian generic drug maker for $133 million plus assumed liabilities, the company announced Monday.
Aurobindo Pharma USA Inc., a domestic unit of Aurobindo Pharma Ltd. in Hyderabab, is buying Natrol. It will continue operating its Valley headquarters and the 216 employees will retain their jobs, said Rivian Bell, a spokeswoman for the company.
“The best thing about this is that all the employees there were offered jobs,” she said.
Natrol, which was owned by Plethico Pharmaceuticals Ltd., another Indian company, filed for Chapter 11 protection in June following a dispute with its lender, New York private equity firm Cerberus Capital Management, Bell said.
The sale to Aurobindo will allow Cerberus to be fully repaid for secured loans of $68 million, she said. Aurobindo beat out the next highest bid of $84 million in a Nov. 12 auction in US Bankruptcy Court in Wilmington, Del.
Natrol is a leading manufacturer in the industry, with its brands, including Natrol, ProLab and MRI, distributed in 54,000 US retailers and 40 countries.
Aurobindo Pharma USA is based in Dayton NJ and has a portfolio of 450 generic drugs. It operates two facilities in New Jersey.
Yesterday’s trade saw GBP/USD within the range of 1.5541-1.5752. The pair closed at 1.5575, losing 1.09% on a daily basis.
At 7:50 GMT today GBP/USD was down 0.06% for the day to trade at 1.5563. The pair broke the first key weekly support level and touched a daily low at 1.5549.
BoE Lending Conditions Report
At 9:30 GMT the Bank of England (BoE) will publish its report on lending conditions in the United Kingdom during the three months to September. It is based on a survey of banking and non-banking institutions, which provide information regarding secured and not secured loans to households, small and medium enterprises and corporations outside financial sector. Respondents in the survey are asked about their opinion on conditions during both past three and the upcoming three months.
Retail SalesTracks the changes in retail sales volumes. Information is gathered through a research including big retailers and an excerpt for the smaller ones. Higher volumes mean higher consumer demand, increased production and economic growth. Calculated both on a monthly and annual basis.
Annualized retail salesTracks the changes in retail sales volumes. Information is gathered through a research including big retailers and an excerpt for the smaller ones. Higher volumes mean higher consumer demand, increased production and economic growth. Calculated both on a monthly and annual basis. in the United Kingdom probably rose at a rate of 4.5% in November, according to the median forecast by experts, after in October sales climbed another 4.3%. If so, this would be the fastest annual rate of increase since April, when the index of sales gained 6.5%. In monthly terms, retail salesTracks the changes in retail sales volumes. Information is gathered through a research including big retailers and an excerpt for the smaller ones. Higher volumes mean higher consumer demand, increased production and economic growth. Calculated both on a monthly and annual basis. probably rose 0.3% during November, following another 0.8% increase in the prior month. Annualized retail salesTracks the changes in retail sales volumes. Information is gathered through a research including big retailers and an excerpt for the smaller ones. Higher volumes mean higher consumer demand, increased production and economic growth. Calculated both on a monthly and annual basis., without taking into account fuel sales, probably rose 4.4% in November, following a 4.6% surge in October. The latter has been the most considerable annual gain in core sales since April, when a rate of 7.4% was registered.
This is a short-term indicator, which provides key information about consumption on a national scale. Higher retail salesTracks the changes in retail sales volumes. Information is gathered through a research including big retailers and an excerpt for the smaller ones. Higher volumes mean higher consumer demand, increased production and economic growth. Calculated both on a monthly and annual basis. suggest stronger consumer demand, confidence and economic growth, respectively. Therefore, in case the index of retail salesTracks the changes in retail sales volumes. Information is gathered through a research including big retailers and an excerpt for the smaller ones. Higher volumes mean higher consumer demand, increased production and economic growth. Calculated both on a monthly and annual basis. increased at a faster-than-projected pace, this would be pound positive. The Office for National Statistics is expected to publish the official report at 9:30 GMT.
Initial, Continuing Jobless Claims
The number of people in the United States, who filed for unemployment assistance for the first time during the week ended on December 12th, probably increased to 295 000 from 294 000 in the prior week.
Initial jobless claimsThe number of people who have or are filing to receive unemployment insurance benefits for the first time, which is reported weekly by the US Department of Labor. It is a closely watched indicator because a continuing increase in its value indicates rising unemployment ratePercentage of the total workforce who are unemployed and are actively looking for employment. All employed and unemployed people are included in the workforce category. One who is not classified as employed or unemployed is excluded from the statistics, which this indicator tracks. One counts as unemployed if he falls in all of the following categories: unemployed for the last week; able bodied; has been seeking employment for a period of at least four weeks, which end in the week when the research is being conducted. People who have been laid off and are awaiting to be rehired are also counted as unemployed. and a difficult economic environment. The indicator is volatile on a week-to-week basis so the four-week moving average is also closely observed. It differs from the Continuing Jobless Claims indicator, which consists of unemployed people who already have been receiving unemployment benefits for a while. number is a short-term indicator, reflecting lay-offs in the country. In case the number of claims fell more than projected, this would have a bullish effect on the greenback.
The number of continuing jobless claims probably decreased to the seasonally adjusted 2 435 000 during the week ended on December 5th, from 2 514 000 in the previous week. The latter has been the highest number of continuing jobless claims since the week ended on August 16th, when 2 528 000 claims were reported. This indicator represents the actual number of people unemployed and currently receiving unemployment benefits, who filed for unemployment assistance at least two weeks ago.
The Department of Labor is to release the weekly report at 13:30 GMT.
Services data by Markit preliminary
Activity in the US sector of services probably expanded in December, with the corresponding preliminary Purchasing Managers Index coming in at a reading of 56.8. In November the final seasonally adjusted PMIPurchasing Managers Index. Economic indicators, based on monthly surveys among private sector companies. Conducted by the Institute of Supply Management in the US and by Markit Group in over 30 other countries worldwide. Gives information about the economic health of the manufacturing sector. It is based on five major indicators – 1. new orders, 2. production, 3. employment environment, 4. inventory levels, 5. supplier deliveries. Base level is 50. Values above the neutral level indicate an improvement and below 50 – a worsening in the current state of the manufacturing sector. It is calculated every month and compared to the preceding. stood at 56.2, or the lowest since April, and down from a preliminary value of 56.3. The PMIPurchasing Managers Index. Economic indicators, based on monthly surveys among private sector companies. Conducted by the Institute of Supply Management in the US and by Markit Group in over 30 other countries worldwide. Gives information about the economic health of the manufacturing sector. It is based on five major indicators – 1. new orders, 2. production, 3. employment environment, 4. inventory levels, 5. supplier deliveries. Base level is 50. Values above the neutral level indicate an improvement and below 50 – a worsening in the current state of the manufacturing sector. It is calculated every month and compared to the preceding. is based on data collected from a representative panel of more than 400 private sector companies, which encompasses industries such as transport and communication, financial intermediaries, business and personal services, computing IT and hotels and restaurants. Values above the key level of 50.0 indicate optimism (expanding activity). Higher-than-expected PMIPurchasing Managers Index. Economic indicators, based on monthly surveys among private sector companies. Conducted by the Institute of Supply Management in the US and by Markit Group in over 30 other countries worldwide. Gives information about the economic health of the manufacturing sector. It is based on five major indicators – 1. new orders, 2. production, 3. employment environment, 4. inventory levels, 5. supplier deliveries. Base level is 50. Values above the neutral level indicate an improvement and below 50 – a worsening in the current state of the manufacturing sector. It is calculated every month and compared to the preceding. readings would support the US dollar. The preliminary data by Markit Economics is due out at 14:45 GMT.
Conference Board Leading Economic Indicator
The Conference Board Leading Economic Index for the United States probably increased 0.5% in November compared to a month ago, according to the median estimate by experts. In October compared to September the index gained 0.9%, or the largest monthly increase since July, when it climbed 1.1%. It encompasses a variety of economic indicators, which signify possible changes in overall economic activity. The index is comprised by the following components: average weekly hours in manufacturing, average weekly initial claims for unemployment insurance, manufacturers’ new orders, consumer goods and materials, ISM Index of New Orders, manufacturers new orders, non-defense capital goods excluding aircraft orders, building permitsTracks the statistics for housing construction, based on given building permits, issued by the local authorities. Does not track building permits numbers in areas of the US where they are not obligatory. The statistics doesnt show how many constructions have really been started since most of the data is not available by the time of publishing the report., new private housing units, Stock prices, 500 common stocks, Leading Credit Index, interest rate spread, 10-year Treasury bonds less federal funds, average consumer expectations for business conditions. Better-than-expected performance of the index is usually dollar positive. The Conference Board will release the official data at 15:00 GMT.
Philadelphia Fed Manufacturing Index
The Philadelphia Fed Manufacturing Index probably fell to a reading of 27.0 in December from 40.8 index points during the previous month. The latter has been the highest level since March 2011, when the indicator was reported at 43.4. The index is based on a monthly business survey (the Business Outlook Survey), measuring manufacturing activity in the third district of the Federal Reserve, Philadelphia. Participants give their opinion about the direction of business changes in overall economy and different indicators of activity in their companies, such as employment, working hours, new and existing orders, deliveries, inventories, delivery time, price etc. The survey is conducted on a monthly basis since May 1968. The results are presented as the difference between the percentages of positive and negative projections. A level above zero is indicative of improving conditions, while a level below zero is indicative of worsening conditions. Lower-than-expected index readings would have a bearish effect on the greenback. The Federal Reserve Bank of Philadelphia is expected to release the official results from the survey at 15:00 GMT.
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.5623. In case GBP/USD manages to breach the first resistance level at 1.5704, it will probably continue up to test 1.5834. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5915.
If GBP/USD manages to breach the first key support at 1.5493, it will probably continue to slide and test 1.5412. With this second key support broken, the movement to the downside will probably continue to 1.5282.
The mid-Pivot levels for today are as follows: M1 – 1.5347, M2 – 1.5453, M3 – 1.5558, M4 – 1.5664, M5 – 1.5769, M6 – 1.5875.
In weekly terms, the central pivot point is at 1.5672. The three key resistance levels are as follows: R1 – 1.5806, R2 – 1.5891, R3 – 1.6025. The three key support levels are: S1 – 1.5587, S2 – 1.5453, S3 – 1.5368.
An important battle about the place of secured lending in the United States economy is set to begin. When the battle ends, fundamental assumptions about the expected recovery rates for defaulted secured loans may change.
On December 8, 2014, the American Bankruptcy Institute is set to release its proposals to reform and overhaul to Chapter 11 of the United States Bankruptcy Code.1 The proposals are the result of three years of study into areas of friction between Chapter 11 and modern corporate finance by the ABI Commission to Study the Reform of Chapter 11 (the ABI Commission). The report embodying the proposals is expected to exceed 400 pages and contain 100 recommendations about 13 topics that the ABI Commission will make to Congress and the federal courts.2
Of critical importance are the ABI Commissions study and proposals relating to secured lending and debtor in possession financing. The ABI Commission, along with other academics and professionals, have debated whether the evolution of a large and liquid secured lending market has caused recoveries for unsecured creditors to decrease over time, and therefore whether the growth of secured lending has disadvantaged unsecured creditor constituencies (employees, landlords, bondholders, vendors, etc.)
We expect that the ABI Commission will conclude that the increased availability of secured loans to below-investment-grade borrowers has caused borrowers to favor capital structures dominated by secured loans. The argument follows that when borrowers with such capital structures default, they have little freedom to choose a form of reorganization and few, if any, viable restructuring alternatives that are not controlled by the secured lenders. The result, some claim, is that secured lenders then use their superior collateral rights under the Bankruptcy Code to force a quick sale of the borrowers assets or to convert their secured debt into equity of the reorganized borrower.3 Because unsecured creditors may be out of the money in such capital structures, the argument concludes that unless secured lending recoveries arereduced and secured lenders are restrained, little can be done to help repay unsecured creditors or continue the debtors existence as a viable post-reorganization entity two purported goals of Chapter 11.
Most importantly, some bankruptcy professionals wishing to curtail secured lending have called for a statutory redistribution of a portion of a secured lenders return on collateral to unsecured constituencies.
COULD THE PROPOSED REFORMS CHANGE RECOVERY EXPECTATIONS FOR SECURED LENDERS?
The Bankruptcy Code informs the structure and framework of all commercial transactions and implicitly sets recovery expectations for creditors throughout the United States. At the highest policy levels, the Bankruptcy Code reflects a multitude of hard-fought compromises between conflicting forces that seek to (i) promptly rehabilitate a debtor as a going concern, (ii) maximize and fairly distribute a debtors remaining assets to its creditors and stakeholders, and (iii) provide secured lenders with a right to full repayment from their collateral through the absolute priority rule. Because commercial transactions are structured and priced based upon the existing Bankruptcy Code framework (and the balancing of conflicting views embedded therein), changes to the bedrock concepts and goals of bankruptcy proceedings will materially impact secured lending.
If the ABI Commissions proposals result in secured lenders being surcharged as a result of the bankruptcy process so as to upset the absolute priority rule, loss given default (LGD) calculations based on the current Bankruptcy framework will not accurately predict losses for secured lenders after borrower defaults. The result is that lenders will need to adjust current LGD calculations in a manner that will increase borrowing rates. Any uncertainty or judicial discretion with respect to a surcharge may cause LGD assumptions to increaseborrowing rates in an inefficient manner. We would expect these costs ultimately will be paid by borrowers and potentially passed along to consumers and employees.
HOW WILL SECURED LENDERS RESPOND TO THE COMMISSIONS PROPOSALS?
We expect a robust response from secured lenders to the proposals of the ABI Commission. The Loan Syndications and Trading Association, Inc. (the LSTA) has invested substantial time and effort to track the progress of the ABI Commissions work for the benefit of its institutional members, many of which are active participants in the global leveraged loan markets and therefore have a vital stake in participating in any debate about Chapter 11 reform. We believe that the LSTA will continue to carry the laboring oar in charting the response of secured lenders to the ABI Commissions report. They will be hosting a webinar on this topic on Thursday, December 11, 2014, at noon (EST).
Private equity sponsors will also need to defend secured lending by actively lobbying for, and describing the benefits of, low cost capital for below-investment-grade borrowers. The borrowers of secured loans are in a good position to make the case that secured lending enables economic growth and job creation within local communities.
We will all have a ringside seat at the upcoming debate over the conflicting policies and economic considerations that will ultimately determine a reformed bankruptcy framework and the shape of bankruptcy proceedings in the future. Secured lenders joining the debate will be required to justify and defend their reliance on the absolute priority rule and the LGD calculations derived therefrom to efficiently price loans in the leveraged loan market. Participants throughout the leveraged loan market should prepare to be heard on these important issues.
The sourcing system provider said the forecast was based on three trends; historically high growth since 2011, improved awareness of the consumer credit industry following the shift to the FCAs supervison and the upcoming European Mortgage Credit Directive.
It pointed to historic data on the sector which showed the secured loans industry averaged 130% growth over the past three years, which took place without any of the regulatory changes now influencing business levels.
Gareth Broome, senior business development manager at The Lending Wizard, said: In the past secured loans were often seen as a fall-back product, and something outside the comfort zone of many brokers.
Over the past few years, however, this has started to improve. The changes under the FCA have had the dual effects of positioning secured loans as a mainstream lending product and tasking brokers with the explicit requirement to carefully review all the options in order to be certain of offering the best advice.
Broome said he expects the European Mortgage Credit Directive to accelerate the changes which are already being seeing, encouraging intermediaries to make a considered appraisal of the alternative options available to them and ensuring that second charge loans are one of those options.
On Sept. 9, I published a news articleabout Bridgeport Biodiesel preparing to expand operations after Tri-State Biodiesel and its parent company, The Sustainable Biodiesel Company, partnered with New Jersey-based Lard-NABF LLC to purchase and upgrade the Connecticut-based facility. The purchase agreement was announced last November.
We have the plant running at 2 MMgy now, Baker toldBiodiesel Magazine in September, and we have just received our building permits to add a tank farm and another large process line that will take the total capacity to 10 MMgy at the site.
Last week, on Oct. 24, a groundbreaking ceremony hosted by Bridgeport Mayor Bill Finch was held initiating the expansion.
Tri-State Biodiesel expects to create an additional 25 jobs, targeted to residents of the low-income community, within the first two years of operation.
Were thrilled that Tri-State Biodiesel is expanding in our states largest city, said Finch. In Bridgeport, we believe that cities need to take leadership on going green for the sake of future generations. And, were winning the future by developing Eco-Technology Parkan incubator for business growth and home to hundreds of green jobswith the support of successful companies like Tri-State Biodiesel. Its one of the many reasons why Bridgeport is getting better every day.
Capital provided by NDCs Grow America Fund will support the construction of a new state-of-the-art biodiesel plant, where Tri-State Biodiesel will manufacture and distribute biodiesel fuel. NDCs Grow America Fund also partnered with the The JPMorgan Chase Foundations Collaboratives Program, which is designed to help small business lenders build capacity and to jumpstart job creation in low- and moderate-income communities.
Congratulations Tri-State Biodiesel!
Once upon a time, credit cards were regulated by the Federal Trade Commission, a body that IndexCreditCards.com would from time to time accuse of never knowingly being on the side of a consumer. But in July 2011 many of its responsibilities passed to the new Consumer Financial Protection Bureau (CFPB). And the bureau has certainly been more active than its predecessor in introducing
transparency and fairness into the card market.
However, even it doesnt have an unblemished record. The Credit CARD Act of 2009 prohibited card issuers from charging in total fees during the first year an account was opened more than 25 percent of the credit line provided.
First Premier of South Dakota found an alleged loophole in this, and offered a product that gave a $300 line while charging a
$95 processing fee alongside a first years annual fee of $75 and a 36-percent APR. Use that $300 throughout that first year, and youd pay the card issuer $278 in fees and interest — or 92.3 percent of your line of credit.
Amazingly, (see Secured credit cards and the Rottweiler tendency) First Premier found a federal judge who agreed with its assertion that the $95 processing fee wasnt a part of the total fees charged during the first year, because it was payable before the account was opened. That could have been the CFPBs cue to appeal, but the regulator chickened out — or caved, to quote American Banker magazine.
Credit CARD Act
Still, credit card users do generally get a much better deal than they used to, and the CFPB can certainly claim some of the credit for that, although it has to share it with the Credit CARD Act. In October 2013, the bureau carried out its own study of that laws impacts, and found:
- The total cost of credit for card users fell two percentage points between 2008 and 2012.
- Overlimit fees have faded to near extinction.
- Late fees were down an average of $6 since the CARD Act was passed.
- Credit remains largely available to those who deserve it.
- Young people have better protections against credit they cant afford.
Credit card companies doing well
When the Credit CARD Act was still a bill, wending its way through Congress, banking lobbyists descended on Capitol Hill in extraordinary numbers. Among their more dire warnings was the assertion that the proposed law posed an existential threat to the card industry, and could see issuers shutter their businesses, thus robbing consumers of all the benefits of plastic. How did that work out?
On Oct. 12, The Wall Street Journal talked about credit card companies being in a sweet spot. It said American Express, Capital One and JPMorgan Chase were all expected to achieve profits at pre-recession highs. And it went on to quote JPMorgan credit card chief Eileen Serra, who observed in an interview, The current state of the industry is very, very healthy.
Indeed, the Journal (hardly a nest of lefty vipers) even acknowledged that some of the industrys current success may be down to the rules the CARD Act introduced: Some executives believe fees and penalty rates that were too high used to stop customers from staying afloat, and drove them to default.
So theres plenty of evidence that card industry regulation benefits both consumers and purveyors of plastic. That makes it even more important that its regulator remains independent, vigilant and courageous.
Secured loans specialist The Loans Engine has welcomed Affirmative Finance to its panel of niche lenders.
Rising property prices, stricter mortgage criteria and growth in areas such as self builds has seen growing demand for more flexible financial products, which The Loans Engine will now be able to offer through its latest collaboration.
Loans ranging from pound;10,000 to pound;5million, a 75% loan-to-value ratio and flexible rates from 1% per month are just some of the extras in the enhanced product range being offered by Affirmative Finance. The company specialise in lending to aspiring homeowners who may have little experience in the mortgage market and are therefore unlikely to be accepted by more mainstream lenders.
Nathan Ellis-Calcott, Business Development Manager at The Loans Engine, says:
For many brokers, second charge loans are not the main focus of their business. Affirmative Finance allows people who may not qualify for the more traditional lending methods a chance to raise finance.
As the regulation of second charge loans starts to align with the mortgage market, brokers need to be offering financial solutions which offer the best outcome for their client.
The Loans Engine finds the most appropriate and competitive personal finance options for each of its customers and, thanks to Affirmatives market leading product offering, we can provide an enhanced range that will make us the best choice for brokers who are looking for a thorough and high-quality level of service.
Miami, FL (PRWEB) October 02, 2014
Skypatrol, a global leader in GPS integrated tracking solutions, announces the introduction of their game-changing DVT (Data Verification Tool) for its Defender 2.0 users. DVT utilizes the latest technology in advanced data base lookup techniques to quickly gather and sort critical information about a prospective borrower or an existing customer.
DVT reports, designed to help Defender 2.0 users improve their lending decisions, can be used in conjunction with credit reports. In fact these DVT reports provide enough valuable data to stand on their own. This powerful tool is integrated into Skypatrol’s award winning GPS vehicle finance platform – Defender 2.0 – giving users immediate access.
“We worked closely with our customers to design these DVT reports and capabilities. We were able to dig in and understand the needs and requirements of the independent auto dealers and vehicle lenders. Then, with the help of the best data compilers in the world, our development team built this comprehensive and reliable data verification tool. This means that our Defender 2.0 users will have a way to quickly and inexpensively verify key information and put together a comprehensive risk assessment of prospective or existing borrowers,” said Robert Rubin, Skypatrol CEO.
Skypatrol’s DVT, with three levels of reports, Basic, Comprehensive, and Expanded Verification, is more helpful than a traditional credit report when it comes to evaluating a subprime borrowers likelihood to repay a vehicle loan. Verifying data, like a steady job and a stable residence is often a more telling indicator than a FICO score.
The addition of DVT for Defender 2.0 users makes it easier and quicker for them to build high yield portfolios while at the same time reducing lending risk. Skypatrol is committed to providing its vehicle finance customers with the most innovative tools and capabilities available in the growing Internet of things (IoT) space.
Skypatrol is deploying DVT today with the latest Defender 2.0 update. This introduction comes right on the heels of the installation app introduction and is a harbinger of things to come.
About Skypatrol LLC
Skypatrol builds innovative software tools uniquely combined with its proprietary GPS hardware and firmware to help businesses monitor, protect and optimize mobile assets in an increasingly machine-to-machine world. Skypatrol serves many markets including vehicle finance, fleet management, mobile asset tracking, automobile dealerships, outdoor sports and motor sports. Skypatrol is a global leader in integrated GPS tracking solutions on a wide variety of platforms including GSM and CDMA cellular networks and dual mode satellite devices, serving customers in the Americas, Europe and Asia. For more information, visit http://www.skypatrol.com.