News Topic: Auto lending

The subprime auto lender funded loans through a group of car dealers that it knew had track records of high default rates and fraud, authorities in Massachusetts and Delaware said. ... Read full article

Creative growth strategies are helping banks with $10B to $50B of assets — including Webster and TCF — improve profitability. These ‘tweeners’ deal with tougher regulations than smaller competitors without the scale larger ones have to absorb the expense. ... Read full article

By bending over backwards when borrowers trade in an older car for a new one, lenders are said to have embarked down an unsustainable path. The warning, by Moody’s, adds to concerns about credit quality in auto lending. ... Read full article

The regulator said that Santander has not made sufficient progress in complying with a 2015 enforcement order. ... Read full article

In a further illustration of weakness in the auto sector, Ally Financial said Tuesday that its 2017 profits will likely be dinged by rising delinquencies on subprime auto loans, as well as by falling used-car prices. ... Read full article

The Justice Department sought information from BMW AG's leasing business last year about how it handles overdue payments from U.S. military personnel, according to documents obtained by Bloomberg. ... Read full article

Republicans repeatedly claim that the Dodd-Frank Act has hurt consumers by raising costs and hampering credit availability. But the data doesn't back that up. ... Read full article

The number of auto loans classified as delinquent rose sharply in the fourth quarter, raising further questions about whether the segment is getting overheated. ... Read full article

Quona Capital Management raised $141 million for the Accion Frontier Inclusion Fund, which will invest in companies that provide financial and other services to underserved customers in emerging markets. ... Read full article

Longer loan terms may be compounding losses when cars are repossessed, a portfolio manager says. ... Read full article

The Dallas-based lender is planning to boost originations to borrowers with solid credit scores amid fears that the subprime auto market is overheating. ... Read full article

The Federal Trade Commission is looking at whether auto finance companies that use sophisticated technology like ignition kill switches are illegally harassing subprime borrowers that have fallen behind on their payments. ... Read full article

Focusing on the rise of auto financing delinquencies ignores the bigger picture: loan volume has grown on all risk tiers and defaults are a natural part of the process. ... Read full article

The San Francisco online lender reported a $32 million loss in the fourth quarter, which brought red ink for the full year to $146 million. ... Read full article

More and more banks are using advanced geographic information systems to help make decisions around branch consolidation, lending in low-income communities, monitoring fraud and even deploying talent. ... Read full article

JPMorgan Chase and Wells Fargo are among the large institutions that are making fewer car loans amid intense price competition and concerns about that lenders are at risk of bigger losses. ... Read full article

The $163.7 billion-asset auto lender reported net income of $248 million, down 5.7% as a result of an increased loan-loss provision and noninterest expenses. ... Read full article

TCF Financial executives are considering pulling back from selling auto loans, following a sharp decline in gains during the fourth quarter. ... Read full article