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CPS Announces New $900 Million Forward Flow Agreement

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LAS VEGAS, Nevada, Jan. 13, 2026 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS...

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AI Summary

CPS partners with Valley Strong to boost $900 million in auto loan originations. The program targets borrowers with prime credit, expanding CPS’s market reach. AI platforms will enhance CPS's lending capabilities and borrower servicing. This partnership aligns with CPS's goal of full spectrum lending for dealerships.

Sentiment Rationale

The partnership is expected to significantly boost revenue opportunities for CPS, similar to past collaborations that significantly enhanced market presence.

Trading Thesis

Establishing a long-term relationship with Valley Strong will enhance CPS's market position, creating sustainable growth.

Market-Moving

  • CPS partners with Valley Strong to boost $900 million in auto loan originations.
  • The program targets borrowers with prime credit, expanding CPS’s market reach.
  • AI platforms will enhance CPS's lending capabilities and borrower servicing.

Key Facts

  • CPS partners with Valley Strong to boost $900 million in auto loan originations.
  • The program targets borrowers with prime credit, expanding CPS’s market reach.
  • AI platforms will enhance CPS's lending capabilities and borrower servicing.
  • This partnership aligns with CPS's goal of full spectrum lending for dealerships.

Companies Mentioned

  • VALY (VALY)
  • CACC (CACC)
  • CIT (CIT)

Corporate Developments

The article outlines a major partnership that could enhance CPS’s revenue and market reach, thus influencing stock performance positively.

Consumer Portfolio Services, Inc. (CPSS) Launches $900 Million Forward Flow Program

LAS VEGAS, Nevada, January 13, 2026 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) announced the initiation of a new forward flow program on December 12, 2025, in partnership with Valley Strong Credit Union, a leading credit union in California’s Central Valley. This strategic agreement is poised to elevate CPS’s annual origination volumes by as much as $900 million, significantly enhancing the Company’s capacity to cater to prime credit borrowers.

Program Details and Strategic Impact

The forward flow program will leverage CPS's advanced AI-enabled auto finance platform, allowing the Company to effectively serve borrowers across all tiers of the credit spectrum. This initiative not only strengthens CPS's position as a full spectrum lender but also reinforces its reputation as the preferred lending partner for automobile dealerships.

According to Mike Lavin, President and Chief Operating Officer of CPS, “We are excited to begin our partnership with Valley Strong. The partnership will contribute to the growth in our origination volumes, allow us to move closer to our goal of being a full spectrum lender for our dealer partners, and expand our national footprint of our AI-enabled platform.”

Commitment from Valley Strong Credit Union

Valley Strong Credit Union’s President and CEO, Nicholas Ambrosini, expressed enthusiasm about the collaboration, stating, “This partnership with CPS aligns with our mission to provide access to competitive auto financing options while leveraging advanced technology to enhance the member experience.” This partnership emphasizes the dual commitment to innovation and customer satisfaction.

About Consumer Portfolio Services, Inc. (CPSS)

CPSS is an independent specialty finance company dedicated to providing indirect automobile financing to individuals who may have past credit challenges or limited credit histories. The Company primarily purchases retail installment sales contracts from franchised automobile dealerships, focusing on late model used vehicles and, to a lesser extent, new vehicles. CPS funds these contract purchases through the securitization markets and services them over their lifespan.

About Valley Strong Credit Union

Valley Strong Credit Union operates 31 branches across Kern, San Joaquin, Solano, and Tulare/Kings Counties, serving over 360,000 members with approximately $4 billion in assets. Recognized by Forbes as the #2 Credit Union in California, it has established itself as one of the largest financial institutions based in the Central Valley.

Investor Relations Contact

For more information, please contact Mike Lavin, President and Chief Operating Officer at 949-450-3038.

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