Tower Federal Credit Union Named “Credit Union Partner of the Year” for Fourth Year in a Row

[Laurel, Md.] – Tower Federal Credit Union has been named “Credit Union Partner of the Year” by Frost Financial Services (Frost) for the fourth year in a row.

The recognition is due to the continued success of the Tower Car Buying Service, an online car buying service, powered by TrueCar. In 2018, 1,920 Tower members using the Tower Car Buying Service purchased a vehicle from a TrueCar Certified Dealer and of those, 1,253 financed auto loans with Tower. This year marked the fourth year in a row that Tower Federal Credit Union has received the Frost’s Partner of the Year Award.


Don’t Sign on the Dotted Line

Letters of Guarantee (LOG) & Legal Jeopardy

How does the routine and common practice of signing a Letter of Guarantee with your borrower’s physical damage insurance company become a legal nightmare for you? Simple. You signed up for it.

As is standard procedure, when a borrower totals his or her car, the insurance company sends the lien holder a summary letter and a document called a Letter of Guarantee (LOG). The Letter of Guarantee details what they will pay in return for releasing the title of the totaled auto. This letter is written by the insurance company and is, naturally, designed to protect their interests; however, it has the potential to jeopardize the interests, legal and financial, of you and your borrower—if you sign it!



Frost’s New Window Sticker Service Helps
Credit Unions Make Better Auto Loan Decisions

In partnership with, Frost is excited to announce an exclusive new service created specifically to help credit unions more accurately value and write loans for vehicles.

“Through our partnership with we can now provide a reproduction of the data from the original automobile window sticker for participating manufacturers,” explains Phil Markwell, partner at Frost. “Credit unions see the MSRP based on the factory options packages, engine and transmission specifications, standard features and other important items enabling them to accurately value and make better lending decisions.”


Warning Signs for Your Auto Loan Portfolio

“More Auto Accidents = More Total Losses = More GAP Claims.”

In the world of auto physical damage claims, the past year has seen profound changes. The wide-reaching scope of these changes is likely to have a significant impact on borrowers and auto lenders, not to mention auto insurers and GAP providers. In short, we are seeing an increase in auto accident frequency, an even
greater increase in the percentage of accidents that result in a total loss, and yet an even greater increase in the percentage of borrowers left with a deficiency balance after total loss. Some of these deficiencies result in GAP claims, and some result in very unhappy borrowers and/or lender write-offs.


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Frost launches new products through Independent Agent network

To help our clients to “protect relationships” with their borrowers, Frost continues to introduce important new products thru its network of independent agents in the Credit Union and Bank markets.  These new programs are designed to provide greater value for their members /customers while also strengthening the bottom line for the financial institution.

Here are few of the programs which have been recently released

Frost distributes its programs thru a national network of independent agents which provides increased competition and greater choice for the market. Frost and its agents are independently owned and have the freedom to represent “best of breed” solutions for our clients and business partners.