Post Tagged with: "subprime"

Why Lenders Should Take Advantage of Alternative Data

Why Lenders Should Take Advantage of Alternative Data

There was some variation in what data was considered alternative, according to FactorTrust’s Alternative Data Survey Results. Overall, the definition of alternative data was quite unanimous as “credit related data not found on the traditional three credit reports,” according to the June survey. For example, FactorTrust, LexisNexis, Clarity, TransUnion L2C, TransUnion TLO,Read More

Sound the Credit Quality Alarm

Sound the Credit Quality Alarm

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

Signs of Further Market Decline

Signs of Further Market Decline

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

CREDIT: Delinquencies Rise, Lenders Tighten Credit

CREDIT: Delinquencies Rise, Lenders Tighten Credit

Subprime 60-plus-day delinquencies declined to 4.28% in February, compared with 5.09% in January, according to S&P Global. Year over year, however, February subprime delinquencies were up 14% over the same month a year prior. “Generally, delinquencies decline from January to February due to tax refunds and this pattern played out againRead More

Credit Unions Look to Improve, Post 2016 Origination Growth

Credit Unions Look to Improve, Post 2016 Origination Growth

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

And So It Begins – The Subprime Realignment

And So It Begins – The Subprime Realignment

So, GO Financial and now, Dealer Funding has taken the brave steps to stop competing in what has been a very hot, and many say overly competitive, subprime automobile market for the past  five years.  You may be able to add Westlake Financial’s captive Western Funding to the list, whereRead More

CREDIT: Increase in Loans, Increase in Subprime

CREDIT: Increase in Loans, Increase in Subprime

More consumers have chosen to finance their vehicles, while lenders have dug deeper into subprime space, experts suggest. Subprime Overall, 75.6 million consumers had an auto loan in the fourth quarter 2015, according to TransUnion. The number is up 7.8% year over year – the largest YoY increase since theRead More