Consumer lending would like to establish different rates for indirect (via dealers) auto financing compared to direct (via our branches) auto financing. Today, everyone reads from the same rate sheet - however, we're working with a new consumer loan manager and we're moving away from indirect financing.
If we document our cost-benefit analysis to show the difference in expense from one portfolio versus the other, and establish (and adhere to) separate lending policies and pricing for each product, are we covering our fair lending bases adequately? Or should we be looking at something else?
Ultimately, we want the customer to get a better deal by coming into the bank, instead of accepting the convenience of dealership direction / one-stop shopping.
I'm getting the "other banks are doing this" argument - just looking for some reassurance.
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