CPS Announces New $900 Million Forward Flow Agreement

Consumer Portfolio Services (Nasdaq: CPSS) announced a new forward flow program with Valley Strong Credit Union that began on December 12, 2025, enabling CPS to expand annual origination volumes by as much as $900 million.

Rhea-AI Summary

Consumer Portfolio Services (Nasdaq: CPSS) announced a new forward flow program with Valley Strong Credit Union that began on December 12, 2025, enabling CPS to expand annual origination volumes by as much as $900 million. The program will target borrowers with prime credit and use CPS’s AI-enabled auto finance platform and proprietary loan and collections systems to originate and service prime automobile loans on behalf of Valley Strong.

Valley Strong operates 31 branches, serves about 360,000 members, and holds approximately $4 billion in assets. CPS said the partnership supports its goal of becoming a full spectrum lender and strengthening dealer relationships.

Positive

• $900 million potential annual origination expansion
• Targets prime credit borrowers via AI-enabled platform
• Leverages proprietary AI loan and collections systems
• Extends national footprint via partnership with Valley Strong (31 branches, ~$4B assets)

Negative

• None.

Argus Jan 13 session

+3.81% close to close Open Argus

Details

News Market Reaction – CPSS

On Jan 13, the day this news came out, CPSS closed 3.81% above the previous close.

Data tracked by StockTitan Argus for the Jan 13 session.

Key Figures

Forward flow capacity: $900 million Valley Strong branches: 31 branches Members served: 360,000 individuals +1 more

Forward flow capacity

$900 million

Maximum annual origination volume expansion from Valley Strong program

Valley Strong branches

31 branches

Valley Strong Credit Union branch count in Central Valley counties

Members served

360,000 individuals

Valley Strong Credit Union membership base

Valley Strong assets

$4 billion

Total assets of Valley Strong Credit Union

Historical Context

5 past events · Latest: Nov 12

5 events

1. Nov 12

   Governance dispute

   24h Move

   +1.5%

   Major shareholder opposed 2025 Equity Incentive Plan over dilution concerns.

2. Nov 10

   Quarterly earnings

   24h Move

   +0.0%

   Q3 2025 revenue and net income grew with larger receivables portfolio.

3. Nov 07

   Earnings call notice

   24h Move

   +2.2%

   Announced timing and access details for Q3 2025 earnings call.

4. Oct 23

   ABS securitization

   24h Move

   +0.1%

   Closed $384.6 million AAA-rated auto receivables securitization.

5. Oct 23

   Credit facility

   24h Move

   +1.0%

   Closed $167.5 million revolving credit facility secured by receivables.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

forward flow program, ai enabled auto finance platform

2 terms

forward flow program financial

"it began a new forward flow program with Valley Strong Credit Union"

A forward flow program is an agreement in which an investor commits in advance to buy a steady stream of newly originated loans, mortgages, or other receivables over a set period at prearranged terms. For investors, it creates a predictable pipeline of assets and cash flow while giving them ongoing exposure to newly issued credit and the ability to spread or manage risk, much like subscribing to a regular delivery of goods rather than buying one-off orders.

ai enabled auto finance platform technical

"through its AI enabled auto finance platform"

An AI-enabled auto finance platform is a digital system that uses artificial intelligence to handle car loans and leases, from assessing credit and pricing deals to automating paperwork and collections. Think of it as a smart loan officer and back office rolled into software that learns and speeds up decisions. Investors care because it can cut costs, reduce defaults, scale faster than human teams, and improve profit margins — but it also brings model, data and regulatory risks.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

LAS VEGAS, Nevada, Jan. 13, 2026 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced that on December 12, 2025, it began a new forward flow program with Valley Strong Credit Union, a leading full-service credit union located in California’s Central Valley.

Valley Strong’s commitment under the forward flow program will enable CPS to expand its annual origination volumes by as much as $900 million. The program will focus on borrowers with prime credit, providing CPS the opportunity to serve borrowers in all tiers of the credit spectrum, through its AI enabled auto finance platform. Additionally, the program enhances CPS’ ability to be a full spectrum lender and will further establish CPS as the preferred lender for its dealership partners. Finally, CPS will leverage its proprietary, AI enhanced loan and collections systems on behalf of Valley Strong to originate and service the prime automobile loans.

“We are excited to begin our partnership with Valley Strong,” said Mike Lavin, President and Chief Operating Officer of CPS. “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.”

“Valley Strong Credit Union is committed to delivering innovative financial solutions to our members," said Nicholas Ambrosini, President and CEO of Valley Strong. "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.”

About Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis through the securitization markets and service the contracts over their lives.

About Valley Strong Credit Union

Valley Strong Credit Union operates 31 branches in Kern, San Joaquin, Solano, and Tulare/Kings Counties, serving more than 360,000 individuals, with approximately $4 billion in assets. Named by Forbes as the #2 Credit Union in California, it remains one of the largest financial institutions headquartered in the Central Valley. 

Investor Relations Contact

Mike Lavin, President/ Chief Operating Officer
949-450-3038

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did CPSS announce on January 13, 2026 about a forward flow agreement?

CPSS announced a forward flow program with Valley Strong that began on December 12, 2025, enabling up to $900 million of annual origination capacity.

How will the CPSS and Valley Strong forward flow affect CPSS origination volumes?

The program is expected to expand CPSS’s annual origination volumes by as much as $900 million and target prime automobile loans.

What role will CPSS’s AI platform play in the CPSS (Nasdaq: CPSS) deal with Valley Strong?

CPSS will use its AI-enabled auto finance platform and proprietary loan and collections systems to originate and service prime loans for Valley Strong.

What are Valley Strong Credit Union’s scale metrics referenced in the CPSS announcement?

Valley Strong operates 31 branches, serves about 360,000 members, and holds approximately $4 billion in assets.

Does the CPSS forward flow change CPS’s borrower focus?

The program will focus on prime credit borrowers while enabling CPS to serve all credit tiers through its platform.