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In each industry there is one person or organization that is recognized as the principal authority. The national authority in consumer vehicle leasing is BLC Associates. Our clients include virtually every major lessor and finance company doing business in the United States. RESIDUAL VALUE INSURANCE Claims audit, damage calculation, policy interpretation and compliance issues. RESIDUAL RISK MANAGEMENT Residual value setting, risk assessment, end-ofterm risk management, loss mitigation. EXPERT WITNESS AND LITIGATION CONSULTING Reg. M, Reg. Z compliance and commercial reasonableness in all aspects of vehicle leasing and lending. END-OF-TERM LEASE MANAGEMENT Telemarketing, vehicle remarketing and disposition. PORTFOLIO Sale and acquisition and administration, lease securitization. REGULATORY COMPLIANCE Lease agreements and documentation, lobbying and legislative drafting. LEASE PROGRAM DESIGN AND IMPLEMENTATION New company development, financial analysis, marketing and sales, research, pricing and product design. UNDERWRITING Credit underwriting policy and standards, insurance underwriting on automotive credit and residual risk. AUTOMOBILE LENDING AND LEASING MANUAL This book provides comprehensive coverage of the issues required to manage direct and indirect vehicle lending and leasing. There are 47 chapters, supplements and appendices in this encyclopedic work covering virtually every aspect of leasing, conventional lending, and balloon lending. ESSENTIALS OF CONSUMER VEHICLE LEASING AUTO FINANCING UPDATE Best source for the most informed opinions and analysis available on the industry as it is today and how it will be tomorrow. The Individual Vehicle Loss Projection System (IVLPS) is a proprietary residual risk management tool in a class of its own. Bank Lease Consultants was the first in the industry to develop such a highly specialized method for projecting residual losses on leased vehicles. The IVLPS incorporates a residual loss algorithm that is adjusted for each client's portfolio characteristics based on the primary variables affecting residual value losses, including vehicle make and model, lease term, projected residual risk at lease end, and used car market trends. The algorithm then projects the residual loss probability for each vehicle from a projection of future market values, such as those prepared by Automotive Lease Guide. These loss projections are used by financial institutions for their internal residual loss reserve projections as well as for approval by their auditors and the OCC. The BLC model also factors in client re-lease and/or refinance capabilities, re-lease and refinance incentives, the effectiveness of the telemarketing and remarketing efforts, and demographic/vehicle characteristics known to affect return rates and loss ratios. The Lease Pretax Yield Analyzer (LPYA) is an Excel-based lease pricing model software package that permits the analysis of auto lease yields on a gross and net basis. Both tax book and finance book yields are calculated. The LPYA allows you to analyze: • Finance and tax book yield effects of alternative lease program policies; • Tax and profit and loss effects of alternative expense projections; • Yield effects of alternative insurance coverages, rate participation payment methods and accelerated depreciation benefits. With over 20 years of experience in the automotive industry, BLC Associates offers expert witness testimony in many related areas of vehicle leasing, lending and consumer credit. BLC Associates has consulted or testified in cases involving billions of dollars and has provided expert witness testimony for both the plaintiff and defense. • Residual Value Insurance policy interpretation, claims calculation and commercial reasonableness. • Consumer Leasing Act and Regulation M charges and disclosures. • Economic analysis of retail finance programs including consumer misrepresentation and evaluation of retail programs and reinsurance issues. • Dealer finance and lease disclosure issues. • Evaluation of commercial reasonableness of indirect leasing and lending programs and reinsurance issues. • Sub-prime financing compliance and program design and management. • Written statement/reports supported by industry practice and historical data. • Deposition and trial testimony. • Economic damage modeling, audits, research and rebuttal of opposing experts. • Industry research and market reputation on commercial practices and litigation issues. • Case economic and strategic evaluation. • Counsel assistance on industry research, case strategy, recruitment and recommendation of additional experts. Mr. McCathren specializes in auto finance and lease regulatory compliance, credit and residual risk management, residual value insurance auditing and analysis, financial analysis and modeling of portfolio performance, lease and loan program design, and end-ofterm lease remarketing and telemarketing. He is a frequent expert witness in auto leasing and finance-related litigation including residual value insurance disputes. He has consulted for the Federal Reserve Board and National Credit Union Administration on leasing and lending regulatory issues. Mr. McCathren is experienced in both the contractual and tax aspects of leasing. He is an expert in auditing lease documentation and lease and loan pricing models. Mr. McCathren has designed a number of analytic software packages for lease pricing and evaluation of lease program performance and profitability. He is frequently cited in both the trade and popular press on his assessments of the auto leasing business, including: The Wall Street Journal, Newsweek, Forbes, Fortune, the Los Angeles Times, The New York Times, the Washington Post, USA Today, Business Week and Automotive News, and has made numerous television appearances on behalf of the industry. Mr. McCathren, an attorney, is a graduate of Yale University (B.S. 1971, magna cum laude) and the University of California, Berkeley School of Law (J.D. 1974). He has been a staff counsel with the Federal Trade Commission and has taught at University of Texas Law School and Vanderbilt University Law School. Mr. McCathren has served as a consultant to the Federal Reserve Board on leasing regulatory issues and represented industry members in the formulation of the 1998 Regulation M and the Uniform Consumer Leasing Act. Mr. McCathren is frequently called upon by federal and state regulatory agencies for assistance because of his experience on consumer vehicle regulatory matters. Mr. McCathren is the co-author of The Automobile Lending and Leasing Manual (1989), Essentials of Consumer Vehicle Leasing (1985) and Auto Financing Update, and is Managing Director of the Association of Consumer Vehicle Lessors. Mr. Loshin, Chairman, founded Bank Lease Consultants in 1981. Mr. Loshin is a widely recognized national authority in consumer vehicle leasing and automobile finance. He is co-author of the only two books devoted exclusively to the technical requirements of the vehicle leasing business: The Automobile Lending and Leasing Manual (1989), and Essentials of Consumer Vehicle Leasing (1985). He co-authors the influential newsletter, Auto Financing Update, which is devoted exclusively to retail vehicle leasing and financing. Mr. Loshin specializes in investment banking aspects of auto financing and leasing and is an advisor to many start-up businesses serving the auto finance and lease portfolio servicing, vehicle remarketing and related industries. He is an expert in credit and residual risk management, residual value insurance, vehicle remarketing, lease program design, lease securitization, and vehicle lease and loan portfolio sales and acquisition. Mr. Loshin convened The National Lessor Roundtable, now the Association of Consumer Vehicle Lessors, whose members include virtually all of the largest vehicle lessors. Mr. Loshin sits on the board of VINtek and has consulted with many other key auto finance servicers. He is a leading advocate of industry engagement with government regulators to create workable consumer protection legislation. His current work is heavily concentrated in investment banking and business development. Mr. Loshin has served as a member of the Consumer Bankers Association Auto Finance Committee and is a frequent speaker at industry conferences including the American Bankers Association. He is an economist and graduate of New York University’s Leonard Stern School of Business. He attended graduate school at the London School of Economics and at the University of California, Berkeley, where he held a post-doctoral fellowship in economics before founding the California Consumer Trade Association, now the Association of Consumer Vehicle Lessors, of which he is Managing Director.