Overview
Title management is one of the most complex and time-sensitive aspects of the auto finance lifecycle. Between varying state laws, multiple sources of payoff funds, and pressure from dealers to expedite title releases, lenders often rely on manual processes or third-party vendors to manage titles. This inefficiency can delay deals, trap capital, and increase operational risk.
Shaw Systems’ Spectrum loan management software addresses these challenges head-on with configurable, automated title management capabilities tailored for the auto finance industry.
Challenge
For many lenders, title management remains disjointed and manual. Titles are often physically stored and released by third-party vendors. When a vehicle loan is paid off, lenders must navigate a complex matrix of variables:
- Source of funds (dealership, borrower, lockbox, wire, etc.)
- Title state (which dictates timing requirements)
- Credit policy (internal rules that determine when and how a title can be released)
- Title perfection status (whether the lender legally owns the title and can release it)
These factors, combined with regulatory requirements and dealer pressure for quick turnaround, make title management highly prone to errors and delays. Mistakes in this process can result in lost business, compliance issues, or sending a title to the wrong party.
Solution: Spectrum Title Management Automation
Spectrum introduces a highly configurable, rules-based title release automation system that dramatically reduces manual intervention and ensures accuracy.
Key Features
- State-by-State Configuration: Users can define release rules based on each title’s issuing state, ensuring compliance with local laws.
- Source-Based Logic: Rules are triggered based on the origin of the payoff funds (e.g., dealership wire transfer vs. borrower check).
- Perfected Title Checks: Titles must meet pre-defined “perfected” status codes before they are eligible for release.
- Release Timing Automation: Titles can be scheduled for immediate or delayed release (e.g., 10-day hold for lockbox check) based on credit policy.
- Work Queues & Exception Handling: Spectrum surfaces accounts requiring additional research before a title can be released, preventing titles from being lost or misrouted.
- Integrated Vendor Communication: Once a title meets all criteria, Spectrum can send data directly to third-party title vendors like Dealertrack, who handle the final delivery.
Results
A client servicing over 500,000 active loans implemented Spectrum’s title automation and realized significant gains. By transitioning from manual title processing to automated workflows, agents no longer had to review every title. Instead, they focused solely on exception cases, allowing them to manage by exception rather than process by default. The result? A time savings of over 60% across their title release operations. Staff resources were redeployed to more strategic initiatives, and title turnaround times improved drastically, earning praise from dealers.
Client Perspective
As one Spectrum client noted:
“The ability to build our title release rules once, then map them across multiple states, saved us countless hours. Spectrum even suspended transactions when something didn’t match…our staff never has to wonder what went wrong.”
For example, when a dealership pays off a vehicle, Spectrum identifies the source and title state, determines the correct release date, fills in borrower or dealership address details, and queues the title for vendor release, all without staff needing to lift a finger.
Conclusion
Title management doesn’t have to be messy or manual. With Spectrum, Shaw Systems clients automate a historically painful process, reduce operational risk, and provide faster service to dealers and borrowers alike.
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