CU Direct Offers Tips for Origination Growth Despite Looming Economic Downturn

Though credit unions have thrived in the current auto finance market, CU Direct is warning the 1,100 lenders on its platform to remain cautious as near-term macroeconomic factors — like rising interest rates and a potential downturn — are likely to spark additional risk factors. “[Lenders] need to increase their rates along with the [Federal […]
  • Nicole Casperson
  • December 3, 2018
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Interest Rates Will Weigh Down Auto Sector Despite Strong Consumer Sentiment [VIDEO]

Comerica Bank’s Chief Economist and SVP Robert Dye expects that the U.S. economy could be headed for a “fiscal cliff” 2020. Despite a somewhat confident consumer segment, the weight of interest rates on the auto industry will soon take effect. When it comes to consumers, “It is the best of times and the worst of […]
  • Monica Melton
  • November 12, 2018
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Why Lenders Should Pay Attention to the Fed’s Interest on Excess Reserves

Federal Reserve Chairman Powell’s announcement on September 26 of the Fed Funds target range increase to 2-2.25% was widely covered in the news. It was generally messaged like most rate increase announcements. That message is that its important news we were all waiting for and could now take necessary action. The truth is, this announcement […]
  • Samuel Ellis
  • October 5, 2018
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Demand for Auto Loans Weaken, Fed Finds

Banks reported that demand for auto loans weakened in the second quarter, while demand for other consumer loans remained “basically unchanged,” according to the Federal Reserve. The findings come from 76 domestic banks and 22 U.S. branches and agencies of foreign banks surveyed by Senior Loan Officer Opinion Survey on Bank Lending Practices, whose results were released […]
  • Emma Sandler
  • August 1, 2017
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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. For example, the New York Fed […]
  • JJ Hornblass
  • June 2, 2017
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Few Banks Tightened Credit Standards for Auto Loan Approval, Fed Finds

Several large auto lenders reported elevated delinquencies and losses in the fourth quarter, but only 13% of banks surveyed by the Federal Reserve have tightened credit standards for approving auto loans. Meanwhile, 85% reported standards remained “basically unchanged,” while, on the bright side, no respondent reported loosening standards, according to the Senior Loan Officer Opinion […]
  • Larissa Padden
  • February 8, 2017
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