Articles by: William Hoffman

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Consumers Are Willing to Put More Down, If They’re Given a Choice

Guides, Payments June 6, 2018 at 11:52 am

Consumers shopping for an auto loan predictably care most about their interest rate and monthly payment, according to a FICO study, but this suggests lenders can provide more options for down payment and loan term to optimize the customer experience.    Americans cared most about interest rate with 94% ofRead More

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Lenders Will Require Larger Down Payments as Underwriting Tightens

Risk April 6, 2018 at 11:00 am

Dealers and lenders have a lot of tricks at their disposal to keep monthly rates affordable for consumers. If the monthly bill is too high, just extend the term. If it’s still too high, perhaps the consumer would consider a certified pre-owned vehicle off-lease. If a new car is non-negotiable,Read More

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Growth of Synthetic Identity Fraud Slows in 2017

Risk March 8, 2018 at 11:52 am

Synthetic identity fraud grew in the fourth quarter on a year over year basis, but artificial intelligence is helping to slow the pace of growth, according to a report from TransUnion. Synthetic fraud balances rose 5.2% in the fourth quarter compared with the same period the year prior, according toRead More

How ABS Credit Enhancements Are Masking Subprime Risk [PODCAST]

How ABS Credit Enhancements Are Masking Subprime Risk [PODCAST]

Podcast, Risk February 26, 2018 at 11:30 am

Multiple subprime auto securitizers are coming to the market with lower average Fico scores, longer terms, and higher loan-to-value ratios than their previous issuances. Yet, these deals are being rewarded with higher ratings. Joseph Cioffi, a partner at Davis & Gilbert LLP, has identified a fair amount of risk inRead More

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Delinquencies to Rise at a Slower Clip in 2018, TransUnion Says

Risk December 20, 2017 at 10:45 am

Serious delinquencies — loans 60 days or more past due — are expected to increase at a slower pace than in recent years, as TransUnion is predicting a three-basis-point rise by yearend 2018, compared with where the rate is now. The industry delinquency rate is looking to have a rollerRead More

Credit Erosion: Cracks Are Starting to Show in Subprime Auto

Credit Erosion: Cracks Are Starting to Show in Subprime Auto

Operations, Risk April 21, 2017 at 11:27 am

Fitch Ratings reported subprime delinquencies hit a 20-year high in March, and some of the smaller lenders in the space have cut back on originations, stopped issuing securitizations, or shuttered their doors completely, multiple sources told Auto Finance News. The number of new players entering the space has “slowed down,”Read More

New Webinar Explores How to Boost Dealer Relations

New Webinar Explores How to Boost Dealer Relations

Guides, IT March 24, 2017 at 9:00 am

Auto lender Flagship Credit Acceptance, and loan portfolio buyer Innovate Auto Finance detailed the kinds of technologies they use to connect with dealers for a webinar entitled: Deepening Dealer Relationships: How lenders can win business in a time of increased competition? The webinar is the the first of a four-part seriesRead More

Credit Unions Look to Improve, Post 2016 Origination Growth

Credit Unions Look to Improve, Post 2016 Origination Growth

Operations, Risk March 14, 2017 at 12:50 pm

Credit unions, as a collective group, grew auto loan origination volume by about 7% in 2016, while all other loan providers — captives, banks, finance companies, and buy here pay here locations — saw volumes decline year over year, according to Michael Cochrum, vice president of analytics and advisory servicesRead More

Zest is Using Math to Comply with CFPB Disparate Impact

Zest is Using Math to Comply with CFPB Disparate Impact

Compliance, Risk March 9, 2017 at 12:46 pm

When you think about the greatest invention of the 20th century, a few key technologies might come to mind: the personal computer, internet, antibiotics, or the electric guitar. But, for Douglas Merrill, founder and chief executive of Zest Finance, nothing compares to the Fico score. “The Fico score is theRead More