Communication is key with respect to the compulsory process, said Colin Hector, an attorney at the Federal Trade Commission (FTC), during a panel at the Auto Finance Risk & Compliance Summit last month. When the FTC was created in 1914, its purpose was to prevent unfair methods of competition in commerce as part ofRead More

It’s time to sound the alarm. Weakness has taken hold of the credit quality within securitized subprime auto assets. Deutsche Bank reported today that year-over-year delinquencies and net loss rates for subprime are up noticeably. Specifically, on a year-over-year basis subprime 60-plus day delinquencies climbing 65 basis points, and the annualizedRead More

Whether an auto lender has 100 compliance staffers or one, an effective compliance management system should be at the top of the priority list, said Richard Miller, chief compliance officer at Hyundai Capital America, in a session at the Auto Finance Risk & Compliance Summit last month. In a nutshell,Read More

The rumblings around a deterioration in the auto lending sector have gotten louder. This morning the Federal Reserve published its bimonthly Beige Book report on regional economic activity, and it displays cracks in the auto finance facade. Regional Fed banks report tightening credit in various pockets around the nation. ForRead More

Do you know if a car dealership is doing well? Is it growing? Will it survive to next year? Auto finance companies must know. They spend marketing dollars and invest risk capital to do business with dealerships, so they need to know if a dealership will still be here tomorrow.Read More

Although delinquencies benefited from tax refund season, according to S&P Global’s March U.S. Auto Loan ABS Tracker, 60-day subprime delinquencies in February — at 4.28% — were up from 3.75% during the same month a year prior. Meanwhile, the subprime recovery rate in February was 37.6%, down from 40.6% inRead More

For the sixth straight year, auto leasing gained in popularity among consumers.* Lenders and dealers have capitalized on the popularity of leasing by extending millions of contracts to consumers over the last few years.  As momentum for new cars trend upward, leasing continues to shift forward, portfolios grow and aRead More