Post Tagged with: "Subprime borrowers"

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A Renewed Call for an FHA for Auto Financing

Compliance, Opinion, Risk April 27, 2018 at 12:32 pm

Last year was a record low year for deep-subprime lending. This, despite the fact that overall auto finance originations climbed more than 5%. In other words, even though auto finance expanded overall, auto finance for the deep-subprime sector did not. To put it another way, the lending expansion stopped shortRead More

8 Facts About Nonprime That You Need to Know

8 Facts About Nonprime That You Need to Know

Guides, Management, Operations, Risk, Sales & Marketing September 8, 2014 at 9:19 am

The fact that nonprime loan portfolios increased last year, delinquency rates grew at a faster clip are not the only facts you need to know about nonprime lending. To better understand the market, we offer these eight market facts to shed additional light on what’s happening in this ever-changing cornerRead More

Efficient and Effective Underwriting Tips

Efficient and Effective Underwriting Tips

Compliance, Operations, Risk July 15, 2014 at 10:49 am

When it comes to collections, lenders should focus on how much a borrower has in his pocket after he’s been paid. Most effective underwriting programs calculate the minimum net income needed after all the current debts are paid, and they look at how much money is needed to support the number of dependents in the household. Also, lenders have to take into account proposed car and insurance payments and need to determine the amount of discretionary income left over.