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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.
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