Which financing program refers to direct transactions between the dealership and the lender?

The direct dealer financing program involves transactions where the dealership interacts directly with the lender to secure funding for the consumer. In this model, the financial arrangements are made between the dealer and the lender without the intermediary involvement of other parties. This creates a straightforward financing process where the dealership may have more control over the terms presented to the consumer and can directly communicate with the lending institution regarding the specifics of the transaction.

In contrast, indirect dealer financing programs generally involve an intermediary, often a financial institution that partners with a dealership to process loans for customers. The dealership submits the loan application to the intermediary, which then evaluates and approves the loan, resulting in a more complex interaction.

The national flood insurance program pertains to insurance related to flood risks and is not related to vehicle financing.

The lending compliance program deals with adhering to regulations and ensuring that lending practices meet legal standards, but it doesn’t specifically describe the nature of transactions between dealerships and lenders.

By understanding the distinctions among these programs, it's clear why the direct dealer financing program is identified as the correct answer, focusing on the direct transactional relationship between the dealership and the lender.