For financial institutions and auto lenders, reducing losses and improving loan servicing efficiency are essential to maintaining strong portfolio performance. Two solutions consistently stand out as top tools for reducing risk and improving recovery outcomes: Blanket VSI (Vendor’s Single Interest) Insurance and a comprehensive Repossession and Remarketing program.
Individually, each program provides valuable protection. But when integrated, Blanket VSI coverage and repossession/remarketing workflows create a powerful, end-to-end loss-mitigation strategy that enhances operational efficiency, improves borrower experience, and ultimately strengthens a lender’s bottom line.
This guide explains how Blanket VSI and repossession programs work together—and why pairing them can significantly improve collections, charge-off performance, and overall risk management.
Vendor’s Single Interest insurance—often referred to as Blanket VSI—provides portfolio-level protection for auto lenders in cases where borrowers fail to maintain insurance or when collateral becomes damaged, stolen, or unrecoverable.
Common Blanket VSI coverage features include:
Blanket VSI is not borrower insurance. It is designed solely to protect the lender, reduce uninsured exposure, and eliminate the administrative burden of tracking individual borrower insurance post-closing.
A strong repossession and remarketing program may help lenders efficiently recover and liquidate collateral tied to delinquent accounts.
Effective programs typically provide:
The goal is simple: accelerate time-to-recovery, minimize losses, and maximize liquidation values.
Integrating Blanket VSI with a repossession and remarketing program gives financial institutions a proactive, end-to-end solution for collateral protection, loan recovery, and portfolio performance improvement.
Blanket VSI provides lenders with coverage for events such as damage, theft, skip, and conversion. Coupled with a strategic repossession and remarketing program, lenders can maximize the value of recovered collateral.
Together, they help reduce:
This combined approach enhances portfolio stability and profitability.
Managing multiple vendors, claims, and auctions can slow down loan servicing teams. Integrating Blanket VSI with repossession services creates:
This leads to more efficient loan servicing and faster delinquency resolution.
Even during repossession or claims, borrower experience matters. Coordinated Blanket VSI and recovery workflows can result in:
A smoother process reduces friction and potential complaints, improving overall level of borrower satisfaction.
Repossession teams that follow Blanket VSI claim guidelines can make informed decisions on:
This ensures lenders receive maximum sale proceeds or timely Blanket VSI payouts when recovery value is insufficient, improving overall loan recovery performance.
Integrated programs help lenders maintain compliance with:
Documented workflows and real-time reporting ensure audit readiness, reduce regulatory risk, and strengthen internal controls.
Lenders using both Blanket VSI and Repossession/Remarketing programs benefit from:
Even small efficiency gains across large auto portfolios can translate into significant annual savings.
Pairing Vendor’s Single Interest (VSI) with a Repossession and Remarketing program creates a unified, proactive risk-management strategy that strengthens loan servicing, reduces charge-offs, accelerates recoveries, and improves overall financial performance. Lenders who integrate these programs gain a more efficient servicing operation, a more resilient portfolio, and measurable improvements to their bottom line.
Learn more about our Vendor's Single Interest (Blanket VSI) and Repossession & Remarketing solutions today!