Rate Reset has created a tool that allowscredit unions to acquire auto loans and mortgages from otherfinancial institutions.

Through LOANGen, consumers enter their current, non-credit unionauto and mortgage loan details. From there, they click through tosee how their monthly payments will change once they change theirauto loan term or mortgage rate with the credit union, according toKeith Kelly, Rate Reset president and co-founder.

“What we found is that most consumers who refinance their carloans don't do it to reduce their interest rates but [to] extendtheir loan terms,” Kelly said.

Reducing interest rates might only reduce a payment by $15 or$20 but adding 12 months to the term can reduce the payment by$100 or more, he added.

LOANGen Auto features a speedometer-like display that changes toshow how much a monthly auto payment will decrease as the consumeradds to the loan term along a sliding scale.

LOANGen Mortgage works almost the same away however, instead ofa sliding scale of time, the tool presents a sliding scale of loanproducts to show how each might change the loan payment.

“One of the things that happens when rates drop is that thecredit union is swamped with calls from members who want to findout how a lower rate could help them lower their payments.This tool will allow consumers to find that out without having tocall the credit union,” Kelly said.

Each completed LOANGen session generates a lead for the creditunion with the member's information that can be used to make arefinance offer, Kelly said.

Rate Reset began developing the tool after research showed thatmany credit unions did not have all the auto or mortgage loanstheir members' held, according to Kelly. LOANGen allows the creditunion to acquire some of those loans more efficiently, he said.

The $1.6 billion GTE Financial in Tampa, Fla., has launched theRate Reset Auto solution for its members, according to Kelly.

“We are always looking for innovative technology that puts ourmembers in more control of their finances and Rate Resetaccomplishes this for us” Joe Brancucci, president/CEO of GTEFinancial, said.

The tool enables the credit union's members to lower theirmonthly payment online or on their phone in a convenient, safe andsecure environment, he noted.

“We even had members use Rate Reset on Christmas day to savemoney on their auto loan,” Brancucci said.

Ben Psillas, CEO of Rate Reset, said the company is very excitedGTE Financial and their members are happy with the ease,convenience and savings Rate Reset provides.

“Rate Reset was able to take a very manual process in autorefinancing for GTE Financial and fully automate it, therebyeliminating all back office cost and increasing membersatisfaction,” Psillas said.