SWBC MMP Success Story | LOCO

An MMP Success Story: LOCO Credit Union

Learn how SWBC helped LOCO Credit Union build a more effective sales culture around MMP products.

partner profile:


Assets Exceeding


Auto Loan Volume

Over 96% of LOCO’s auto loan portfolio consists of used vehicles, and mechanical problems typically go hand-in-hand with these type of auto loans. Stepping up their MMP sales allowed LOCO to increase its non-interest income and protect its members from costly repairs.


  • Increase employees' knowledge base of MMP products
  • Improving team members' sales tactics
  • Incentivize staff to increase MMP sales
  • Generate non-interest income


  • Conducted onsite and remote MMP product training
  • Recommended and helped implement improved sales tactics and best practices
  • Launched Mercury's Road 2 Rewards program to incentivize MMP Sales
  • Successfully helped LOCO CU increase non-interest income through improve MMP sales


LOCO Credit Union became an SWBC Major Mechanical Protection (MMP) and Guaranteed Asset Protection (GAP) client in late 2018 after switching from a different provider. The implementation process for smaller credit unions can be challenging because their employees already wear several hats, and any disruption to their daily tasks can cause hardship. However, the transition to SWBC was successful thanks to the persistence and dedication of the SWBC team.

LOCO Credit Union already maintained a strong sales culture, so selling GAP to members was what they would consider a “no-brainer;” however, selling MMP was more challenging. Extended warranties can be difficult to explain to borrowers; the terms vary from carrier to carrier, and in general, the price can cause sticker shock—particularly to an underserved community such as the one that LOCO represents. On top of those underlying challenges, with their previous provider, the members who did purchase a policy and attempted utilization ran into issues with recognition at certain mechanics and dealerships—making the borrower experience less than ideal.

New car warranties don’t last forever and vehicle repairs are inevitable. Give your auto loan borrowers coverage they can count on with MMP from SWBC.


Once LOCO launched the MMP program with SWBC, they not only gained access to an excellent training program, but their staff was also able to take advantage of the Mercury Road 2 Rewards program. The Mercury Road 2 Rewards program offers reward points to associates who sell Mercury vehicle protection products. It incentivizes LOCO’s team members to earn points that are redeemable through Mercury’s online shopping mall for each policy sold. The prizes range from gift cards to airline tickets. In addition to individual incentives, each credit union is given a monthly goal, and should they achieve it, all participants are given a chance to earn additional points.

The Road 2 Rewards program, combined with training that provides extensive and easy to understand product knowledge, role-playing scenarios, and tactics to overcome objections, LOCO has seen MMP sales nearly keep pace with their GAP sales—a rarity in the point of sale market.

What sets the LOCO team apart is they are not afraid to ask EVERYONE! They will present the product, talk about the advantages, listen to the member’s concerns, and then tailor the program to fit their needs,” said Chasity Gafford, Senior Training and Performance Consultant for SWBC.

“MMP has made a big difference for our credit union income-wise, and the staff benefits from rewards of points for them personally, as well as incentives for sales within the credit union.”

–-Pam Vega, CEO LOCO Credit Union

How SWBC Helped LOCO Provide Stellar Member Benefits

As with any product or service, for LOCO, the primary concern is always serving their members and offering the most value. What the LOCO staff found was, with a more robust warranty program, their members were able to reap the benefits of a rewarding claims and customer service experience.

“We have had some unbelievable member stories that we now use as a selling tool. For instance, one of our members was on vacation in California and experienced a breakdown. She was able to get a car to use during her stay, as well as towing services and lodging accommodations. She was most grateful, and we often quote her example when selling the product to others,” said Vega regarding how MMP has benefited their members.

Anytime a member has to file a claim, the process can be stressful. After all, for many people, reliable transportation directly impacts their livelihood, so an unresolved mechanical problem can be detrimental. When a borrower makes the investment in an extended warranty product, it’s critical that their claims are processed in a timely manner so that they can get back on the road as quickly as possible. When asked about the claims process, Vega commented that it was smooth and efficient.

New car warranties don’t last forever and vehicle repairs are inevitable. Give your auto loan borrowers coverage they can count on with MMP from SWBC.

SWBC Helps Build a Strong Sales Culture

SWBC conducts training for Loco Credit Union both on site and remotely through virtual classroom. LOCO Credit Union’s loan officers have achieved great success by learning the product to confidently present its benefits and adopting the best practices that SWBC recommends.

Building a strong sales culture takes top-down engagement and consistency. For LOCO, finding success in the Mercury Road 2 Rewards program and their point-of-sales products is all about team work.

With our incentive program, the loan department splits funds equally in order to accommodate the employee who files the claims, the employee who closes the loan and sometimes “re-sells” the product at closing, the employee who types the product information (and gets it correct the first time), as well as support staff that collect on the past due accounts. This sharing of incentives certainly creates a team effort as far as sales are concerned,” said Vega.

Even the SWBC staff has witnessed the impact of LOCO’s teamwork mentality. “The biggest thing I noticed is everyone holds each other accountable. They work as a team and push each other as a team,” said Gafford.

An Unexpected Benefit: MMP Helps Protect Your Collateral

Over 96% of LOCO’s auto loan portfolio consists of used vehicles, many of which are purchased locally in their community “as is.” Mechanical problems typically go hand-in-hand with these type of auto loans. From LOCO’s standpoint, it is critically important to ensure their collateral is at full value, so when a warranty is not in place, within six months, the borrower ends up relying on a loan for repairs—or worse, they surrender the vehicle voluntarily. MMP prevents a thousand-plus dollar repair from becoming a voluntary or involuntary repossession and bad member experience.

Conclusion: A Recipe for Success

While they never fully expected to see a dramatic increase in fee income from MMP and GAP sales, Vega comments that they were pleasantly surprised by the income generation tied to these point-of-sale products.

We learned quickly that we were leaving a lot of money on the table,” she said. When asked about the credit union’s relationship with SWBC, Vega commented, “We owe a debt of gratitude to Brent Fischer, Account Vice President, for pursuing the sale of these products through SWBC. He was aware of our sales culture and made promises for months of a tremendous return on sales of MMP, and we reached every goal he promised.”

SWBC’s facilitation of a fun, creative, and time-tested curriculum combined with Mercury’s Road 2 Rewards incentives has resulted in a recipe for success—for both the credit union and their members!

About SWBC's Financial Institution Group

Since 1976, SWBC has focused a large portion of its business on serving the needs of financial institutions and mortgage servicers around the country. The Financial Institution Group (FIG) provides solutions to help our clients stay competitive in the financial services industry and abreast on the latest compliance and regulatory updates. 

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