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     150  0 Kommentare Regional Management Corp. Provides Business Update - Seite 2

    • Branch Originations –We have continued to originate new branch loans with appropriately tightened lending criteria. Branch originations rebounded from $31.6 million in April 2020 to $48.3 million in May 2020. Across our footprint, we continue to see a gradual and ongoing improvement in branch loan applications and production from the low point in the second week of April, including in our largest markets of Texas and South Carolina, which were among the first states to reopen. May 2020 originations were down 56% compared to May 2019, while April 2020 originations were down 61% compared to April 2019.
    • New Direct Mail and Digital Originations – In late April and early May, we reinitiated our direct mail campaigns and reopened our digital channels, focusing on higher credit quality segments as identified by our custom credit scorecards. Historically, these segments have provided attractive risk-adjusted returns that deliver positive contribution margin, even in challenging credit environments. In May, these channels produced $9.6 million of originations, up from $3.7 million in April.
    • Favorable Geographic Concentration– We largely operate in states that have been among the least impacted by COVID-19 infections and among the most proactive in reopening their economies. Based on finance receivables distribution by state, the weighted-average unemployment rate in our footprint was 12.6% for the payroll period that included April 12th, compared to 14.7% nationally. We believe that the relative macroeconomic conditions in our states of operation favor a more rapid recovery in consumer demand compared to the broader United States economy. As state economies reopen and we gauge the results of our marketing programs, we expect to expand production in our branches and through our direct mail and digital marketing channels in a risk-appropriate manner. As of May 31, 2020, we had $1.03 billion in total finance receivables outstanding.

    Customer-Centric Model

    • Branch Operations – Our operations have been considered “essential services” under nearly all state mandates, and as a result, substantially all of our branches have remained open throughout the crisis, while adhering closely to CDC guidelines. At this time, branch personnel service our customers in-person by appointment, curbside, and by phone. We plan to allow walk-in traffic beginning in mid-June, with appropriate safety protocols.
    • Remote Loan Closings – In May, we began rolling out a new remote loan closing process for our customers. We expect to make remote loan closing available to customers in all states over the next several weeks.
    • Digital and Centralized Servicing – Our online portal enables our customers to view the status of their accounts and to initiate electronic payments (debit and ACH), and our centralized collections team has continued to support our branch servicing efforts. Our customers may call our branches or our toll-free telephone number to receive remote service by phone, including to apply for a loan, complete a loan deferral, and make an electronic payment.
    • Customer Communications – We continue to communicate frequently with our customers by phone, text, and email to update them on the status of branch operations, highlight the availability of various electronic payment options, and inform them of new programs that may be available to help them.

    Financially Sound

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    Regional Management Corp. Provides Business Update - Seite 2 Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today provided an update on its business operations and financial position as of May 31, 2020. This press release features multimedia. View the full release here: …