Case Study: First Investors achieves legal perfection of digital loan assets and acquires 25K+ digitally originated auto loans with eOriginal

First Investors Finds Perfection in Management of Assets in Digital Ecosystem

First Investors Financial Services, a consumer finance company that specializes in subprime auto lending and services dealer partners, faced a strategic challenge when its online originator partners began moving to electronic contracts. Leadership was wary of adopting digital lending because of uncertainty around management and legal “perfection” of key loan documents (chattel paper and promissory notes), the cost-effectiveness of e-contracting, and whether warehouse lenders, custodians and investors would accept electronic assets.

First Investors conducted due diligence and adopted eOriginal’s digital asset protocols to establish control and perfection of electronic contracts. The solution aligned warehouse lenders, custodians and investors around digital best practices, enabled conversion of partner originations to eContracts, and gave the company confidence to acquire loans stored digitally — resulting in expedited access to partner-originated auto loans, increased confidence in legal perfection, and acquisition of more than 25,000 digitally originated loans.

First Investors

Bennie Duck

Executive Vice President and Chief Financial Officer