July 30 - VINtek, a provider of automotive collateral management, electronic lien and title services and direct finance processing, reports that it assisted with the passage of ELT legislation in Nevada, which has been signed into law by Governor Brian Sandoval.
ELT replaces paper automotive liens with an electronic exchange of data between the department of motor vehicles and automotive lenders. Assembly Bill 309, signed into law on June 11, is the first ELT legislation in the country to outsource the building and maintenance of a cloud-based electronic lien system in a public-private collaboration. After selection in an RFP process, the chosen supplier, or suppliers, will build and maintain Nevada’s internet-based ELT program, which will be paid for by sharing a portion of the cost savings lenders and consumers will realize from the paperless process. The legislation requires the reimbursement of any initial direct launch costs incurred by the DMV, as well as ongoing DMV ELT program operating costs. Although deadlines have not been set for compliance with the legislation, it is expected that all but the smallest of automotive lenders will ultimately be required to participate in the program.
In addition to the state incurring no expense for ELT implementation, the DMV and participating lienholders will also benefit from reduced costs through the elimination of paper, less postage and storage, and the automation of a manual process. Currently, 19 states operate ELT programs, which combined, process roughly two-thirds of new vehicle lien volumes, while many other states are reviewing their options for implementing ELT.
“Nevada has chosen to implement ELT in the most innovative, efficient way possible,” said Larry Highbloom, president of VINtek. “The DMV and lienholders in Nevada will soon experience the cost savings and process improvements afforded by removing paper from the titling process. We are seeing a growing national trend in outsourcing of legacy state agency operations in order to improve state operating efficiencies and Nevada has applied the concept to the DMV. VINtek commends the Nevada legislature for their decision to be responsive to stakeholder requests for operational improvements and efficiency gains.”
In its 23rd year, Philadelphia-based VINtek provides automotive collateral management services, ELT and direct auto finance solutions for banks, credit unions and other auto finance institutions. Through its offices in Philadelphia, Las Vegas, Sacramento, Calif., and Troy, Mich., VINtek enables lenders to increase customer satisfaction and operating efficiency while simultaneously decreasing costs and errors associated with automotive collateral management through the introduction of innovative consumer loan servicing technologies. VINtek holds two U.S. patents on automotive lien processes and is the recipient of numerous industry awards for its processing services. For more information, visit www.vintek.com.