All Posts

How to Build an Online Lending Business [WEBINAR]

May 27, 2015 at 10:19 am 0 comments

What’s the best way to pursue direct auto lending? The Center for Auto Finance Excellence offers a webinar that aims to answer just that quest. Entitled, “Boosting Direct & Indirect Lending Through Online Engagement,” the webinar recorded May 13 features Jim Landy, CEO of Powerautoloan.com and a veteran of direct lending. Landy discusses the importance of building relationships with buyers as early as possible in the car-shopping process as possible, which, in 2015, almost always means online.

Late Payments Flat Despite Auto Debt Record High, TransUnion Reports

Late Payments Flat Despite Auto Debt Record High, TransUnion Reports

May 27, 2015 at 9:35 am 0 comments

Auto delinquencies remained flat last quarter, even though car loan and lease volume increased and the average automotive debt per borrower hit a record $17,508, TransUnion reported today. Serious delinquencies, defined as delinquencies of 60 days or more, represented 0.99% of outstanding accounts, unchanged from the first quarter of 2014, accordingRead More

Many Dealers Slow to Embrace E-Contracting, Gateway One CIO Says

Many Dealers Slow to Embrace E-Contracting, Gateway One CIO Says

May 26, 2015 at 10:08 am 0 comments

Despite the obvious advantages of e-contracting, like faster credit decisions and a quicker F&I process overall, “some dealers just won’t get on board,” said Marty Crowley, chief information officer for Gateway One Lending & Finance, when speaking from a non-captive lender perspective during an Auto Finance Risk and Compliance Summit panel discussionRead More

Collection Vendors Pose a High Risk for Companies, Expert Says

Collection Vendors Pose a High Risk for Companies, Expert Says

May 25, 2015 at 11:00 am 0 comments

A company’s collection vendor can be one of the highest risks  a lender has — maybe the highest — said attorney John Redding, a partner at BuckleySandler LLP, during a presentation at last week’s Auto Finance Risk and Compliance Summit in San Diego. Redding warned attendees to be careful when outsourcingRead More

U.S. Supreme Court Might Not De-Fang Disparate Impact, After All

U.S. Supreme Court Might Not De-Fang Disparate Impact, After All

May 22, 2015 at 2:12 pm 1 comment

Auto lenders shouldn’t count on the U.S. Supreme Court to rescue the auto finance industry from the disparate impact theory, said Chris Willis, a partner with the Ballard Spahr LLP law firm. The Consumer Financial Protection Bureau relies on the disparate impact theory to try and prove discrimination in auto loans. “There’sRead More

Disclaimers Do Not Cure Lies, FTC Attorney says

Disclaimers Do Not Cure Lies, FTC Attorney says

May 22, 2015 at 2:08 pm 0 comments

Advertising disclosures are not a cure-all even though many people think so, said Yan Fang, an attorney for the Federal Trade Commission. “You can’t disclaim away a falsehood,” she said at the Auto Finance Risk and Compliance Summit in San Diego on Monday. The FTC often encounters prominent, misleading claims in autoRead More

Auto Loan Volume Record High, Late Payments Flat in Q1, Experian Says

Auto Loan Volume Record High, Late Payments Flat in Q1, Experian Says

May 22, 2015 at 11:40 am 0 comments

Total outstanding auto loans reached a record high of $905 billion at the end of the first quarter, an increase of 11.3% from last year, while delinquencies were essentially flat, according to Experian Automotive. The latest figures refute the notion that subprime auto loan growth is overheating, said Melinda Zabritski,Read More

7-Year Loans Require Greater Vigilance, Higher Pricing

7-Year Loans Require Greater Vigilance, Higher Pricing

May 21, 2015 at 4:50 pm 0 comments

As cars get more expensive and consumer budgets get tighter, loan terms are extending to keep monthly payments affordable. The average loan term on all new cars was 66 months in the fourth quarter of 2014, according to Experian, up a month from the prior-year period.

No Point-of-Purchase Financing, No Purchase, Powersports Survey Says

No Point-of-Purchase Financing, No Purchase, Powersports Survey Says

May 21, 2015 at 10:53 am 1 comment

A majority of consumers in the powersports segment said they would not have made the purchase or would have gone to another retailer if financing were not available, according to a study by Synchrony Financial, a consumer financial services company. The highest rated reasons consumers chose for getting financing atRead More

The Positives in Today’s Onerous Regulatory Environment

The Positives in Today’s Onerous Regulatory Environment

May 20, 2015 at 11:45 am 0 comments

SAN DIEGO — July will mark the fourth anniversary of the Consumer Financial Protection Bureau, and it is now clear that no organization’s founding — other than perhaps General Motors’s launch of the first auto finance company ever in 1919 — has had a greater influence on this industry. JustRead More

Auto Finance on the Rise in Marketplace Lending, Prosper Says

Auto Finance on the Rise in Marketplace Lending, Prosper Says

May 20, 2015 at 11:45 am 0 comments

Demand for auto and powersport financing — from both borrowers and investors — is growing at Prosper Marketplace, according to President Ron Suber. “I would say that auto, motorcycle, and RV are all on the rise,” Suber told AFN, noting that the company is more active in the used space,Read More

Compliance Progress Tempers Warnings for Improvement, Panelists Say

Compliance Progress Tempers Warnings for Improvement, Panelists Say

May 19, 2015 at 11:16 am 0 comments

SAN DIEGO — Dire warnings for auto lenders were the order of the day at the Auto Finance Risk & Compliance Summit here on Monday. “The regulatory field has a lot of landmines in it today,” said Dan Soto, chief compliance officer for Ally Financial Inc. Still, the auto financeRead More

Slot F