Tricolor becomes only lender among all auto asset-backed securities issuers in the U.S. to earn CDFI designation

DALLAS, Nov. 05, 2019 (GLOBE NEWSWIRE) -- It was announced today that the US Treasury Department has formerly certified Tricolor, the nation’s largest used vehicle retailer focusing on the sale and financing of vehicles to the Hispanic consumer, as a Community Development Financial Institution (CDFI). This designation is a federal recognition of Tricolor’s mission and successful history in offering responsible and affordable credit-building auto loans to individuals with limited or no credit history.

CDFI certification provides Tricolor with greater opportunities to partner with banks to expand its affordable, credit building lending strategy. The designation enables banks to legally invest in Tricolor securities to promote public welfare and fulfill their Community Reinvestment Act (CRA) obligations.

The approximately 1,000 certified CDFIs in the U.S. are selected as part of an extensive application and review process. The majority are nonprofits. Tricolor becomes the only lender among all auto asset-backed securities issuers to earn CDFI certification and one of a select group of for-profit enterprises which meet the rigorous standards for helping communities.

"We are humbled and honored to join this exclusive group of CDFIs as named by the U.S. Department of the Treasury. It truly speaks to the essence of our mission-driven work and will enable us to grow in service to even more deserving individuals,” said Daniel Chu, Founder and CEO of Tricolor.  “Since the beginning, our commitment has been to put the customer’s best interests and needs at the center of every interaction, and this certification not only validates this purpose but significantly enhances our ability to scale our lending platform.”

Since its founding in 2007, Tricolor has empowered customers by providing access to affordable financing on high quality, certified vehicles in order to enhance the quality of their lives and ultimately help them to build a better future.

Tricolor’s proven and proprietary credit decisioning engine demonstrates its advanced analytical competency and serves as the foundation for a new direct lending model for subprime customers. Its AI-powered segmentation model assesses unique, nontraditional attributes for no credit and low-income consumers in order to assess intent and ability to repay. For more than a decade, Tricolor has successfully scored no file and thin file Hispanics, as evidenced by five well-received ABS securitizations.

For more information about Tricolor, please visit tricolor.com.

About Tricolor

Tricolor is a Community Development Financial Institution (CDFI) and mission-driven company which sells and finances high quality, certified used motor vehicles through its premium brands, Tricolor Auto Group in Texas and Ganas Auto Group in California, utilizing advanced data analytics and technology to advance financial inclusion to a highly underserved market and offer responsible, affordable, credit-building auto loans to individuals with no or limited credit history.

Headquartered in Dallas, Tricolor and its affiliate Ganas Auto Group operate 36 retail dealerships across 12 markets in Texas and California, as well as a shared services center in Guadalajara, Mexico. On a combined basis, Tricolor and Ganas have served nearly 50,000 customers and disbursed nearly $1 billion in affordable auto loans by using its proprietary model to segment risk.

CONTACT INFORMATION
Stephanie Hicks
Cosmo PR for Tricolor
(805) 295-9455
stephanie@cosmo-pr.com