|
|
|
Primary
Servicing
- SST specializes in
consumer loan servicing for securitized, non-securitized, prime,
non/near prime and distressed asset portfolios. SST was formed
in 1995 to service a variety of consumer assets, with the initial
focus on subprime auto loans. As the nation's leading third-party
servicer, we have boarded and serviced receivables with original
balances of $26 billion. SST brings experience, flexibility, and
customized, cost-effective solutions to every assignment.
Today, SST services auto loans and leases, recreational vehicles,
boats, motorcycles and power sports equipment, credit cards, signature
loans, manufactured housing and other consumer receivables. SST
provides primary servicing through two channels: conduits (daily
flow relationships) and bulk transfer transactions.
- Conduits - receivables
are originated daily by our clients and we service from loan creation
to satisfaction, including deficiency collections. Conduits represent
a full outsourcing of all functions of our client's business,
excluding loan underwriting and marketing.
- Bulk transfers - existing
pools of loans are transferred to us
when an institutional investor purchases the pool. Bulk transfers
generally represent a total outsourcing of all functions. The
owner of the receivables is typically not the originator of the
loans.
Every new servicing assignment is customized
and managed through a dedicated client management team and a single
point of contact:
- Private label - SST interfaces
with the obligor wholly in our client's name. In this arrangement,
SST is invisible to the consumer.
- Co-branding - both our
client and SST maintain a presence with the consumer. Co-branding
can take place on many levels. For example, customer service calls
are answered in our client's name, allowing the client to maintain
a brand image, while collection calls are made in SST's name.
- Third-party – only
SST’s name and brand are utilized. This is often the case
when SST is the successor servicer for portfolios in which the
prior servicer is exiting the business. Third-party branding can
be an attractive option with lower-tier credit paper.
From our in-house proprietary servicing
system to our specialized training programs, SST was built to
be a third-party servicing operation. We are not a lender ourselves
but concentrate 100% of our efforts on our clients. SST excels
as a result of our:
- Low facility cost structure –
two locations: St. Joseph, Missouri and Joplin, Missouri. These
serve as highly functional servicing centers, subject to low overhead
costs. Both have redundant processing capability and are tested
regularly for disaster recovery. Data transfers to facilitate
a "real-time" recovery occur on an automated basis.
- Low employment cost structure –
St. Joseph and Joplin provide both stable and low-cost employment
bases. Furthermore, SST’s annual employee turnover is less
than 25%, significantly lower than the industry average.
- Proprietary system –
our universal system is designed specifically to handle consumer
receivables, from boarding through deficiency collections. The
system has been recognized by both client and industry participants
(investment banks, insurers, rating agencies, etc.) as the "best
in industry." SST’s ownership of the system provides
a competitive advantage in transferring portfolios. This control
gives us the ability to transfer portfolios faster and with fewer
complications.
- National coverage –
SST services receivables in all 50 states, covering a broad base
of obligors. SST has a team of employees that specialize in non-English
speaking collections and customer service.
- Training – every SST employee who interacts with obligors receives extensive training that includes a review
of applicable laws and regulations. All employees are required
to participate in regular update/refresher training programs.
- Employee Incentive Programs
– we offer a monthly performance incentive plan for our
employees. The percentage paid is based on individual performance
and is typically around 10% of base salary. Performance levels
are established monthly and are set based on our client’s
expectations and the performance trend of the portfolio (taking
seasonality and other factors into consideration). A “stretch
goal” is always included. We measure and incent our employees
based on productivity, delinquency and quality tracked in our
employee scorecard.
|
|
|
