Articles

Why Lenders Should Use Big Data in Decisioning Process

Why Lenders Should Use Big Data in Decisioning Process

Credit scores have always been an important criterion in a lender’s decisioning process. However, this trend may alter as non-traditional data has increasingly attracted attention in the auto lending industry. Lenders who exclusively use traditional credit bureau scores are “missing a wealth of information that could have a huge impactRead More

Best Practices Survey: We Want to Hear From You

Best Practices Survey: We Want to Hear From You

The Center for Auto Finance Excellence is constantly working to enhance its relevance and service to you and the industry. As an important part of the auto finance community, we are coming to our members for best practice insights.Please take a moment to complete this short survey, which will offer valuableRead More

Subprime Defaults Rise as Nonbank Competition Increases [PODCAST]

Subprime Defaults Rise as Nonbank Competition Increases [PODCAST]

Subprime auto defaults reached $1.8 billion as of June, making up about 80% of all defaults in the market, Michael Vogan, automobile economist in the credit analytics department at Moody’s Analytics, said during Episode 2 of The Auto Finance Roadmap. Last month, The Center for Auto Finance Excellence — sister siteRead More

Compliance Insider: The Cynic Returns

Compliance Insider: The Cynic Returns

You may recall that last month I wrote about how a cynic might view the Consumer Financial Protection Bureau’s arbitration rule and its corresponding ban on class-action waivers in predispute arbitration agreements. My cynic held the view that the rule, while purporting to be only a ban on waivers, wasRead More

Why Regulators Are Keeping a Close Watch on Dealers

Why Regulators Are Keeping a Close Watch on Dealers

Dealers are faced with an assortment of issues today when it comes to the red-tape of compliance. From the Consumer Financial Protection Bureau to the Department of Justice and state attorneys general, they are all keeping a close watch on dealer business practices. But some issues, more than others, areRead More

How to Create a Customer-Centric Auto Lending Experience

How to Create a Customer-Centric Auto Lending Experience

The paper process during a transaction is a challenge lenders face in the space, because up to 3% of all loans initiated tend to not get booked, which would lead to “additional work” and “loss in revenue,” Theodore Papailion, director of value engineering at eOriginal, said during a webinar entitled HowRead More

Digital Services ‘Open the Floodgates’ for Disruption, Divido Exec Says [VIDEO]

Digital Services ‘Open the Floodgates’ for Disruption, Divido Exec Says [VIDEO]

As on-demand streaming services like Netflix and Spotify transform the expectations of digital consumers, auto lenders will need to “respond quickly” when it comes to funding requirements, Christer Holloman, chief executive and co-founder of Divido, told attendees at the International Auto Finance Network conference in London. “Consumers want things straightaway,Read More