Articles by: William Hoffman

Ally's Detroit Center (Via Ally Press Room)

Ally Financial Originates $8.9B Amid ‘Cautious’ Industry Tone, CFO Says

April 27, 2017 at 12:16 pm 0 comments

Despite a number of auto finance institutions reporting pullbacks in originations this week, Ally Financial Inc. kept originations relatively flat at $8.9 billion in the first quarter compared with the same period a year ago, the company reported this morning. “There is a more cautious tone across the industry, you’veRead More

SNAAC Failed to Satisfy 2015 CFPB Order, Fined $1.25 Million

SNAAC Failed to Satisfy 2015 CFPB Order, Fined $1.25 Million

April 27, 2017 at 11:30 am 0 comments

Security National Automotive Acceptance Company (SNAAC) was issued a consent order by the Consumer Financial Protection Bureau today, claiming the lender did not properly repay military service members harmed in a 2015 consent order from the bureau, and instead rewarded “worthless credits” to the consumers. “This company violated a Bureau orderRead More

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Santander’s Auto Originations Decline 21% in First Quarter

April 26, 2017 at 12:26 pm 0 comments

Santander Consumer USA originated $5.4 billion in auto loans and leases in the first quarter, down 21% from the same period the year prior, according to the subprime lender’s earnings report released this morning.   The decline is part of Santander Consumer USA’s overall strategy to drive “disciplined underwriting inRead More

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Fifth Third Plans to Shrink Portfolio 30% by 2019

April 25, 2017 at 12:59 pm 0 comments

Fifth Third Bank plans to reduce its auto portfolio to $7 billion by 2019 as it focuses on more profitable auto loan originations, Chief Financial Officer Tayfun Tuzun said during an earnings call this morning. The bank has already started to slow originations, as it aims for an overall 31%Read More

Calvin Hagins, deputy assistant director for originations at the Consumer Financial Protection Bureau, speaks on a regulatory panel at the 2016 Auto Finance Summit. (William Hoffman)

Regulators to Discuss Changing Compliance Landscape at AFRCS

April 25, 2017 at 10:00 am 0 comments

Calvin Hagins, deputy assistant director for originations at the Consumer Financial Protection Bureau, and Colin Hector, attorney for the division of financial practices at the Federal Trade Commission, join the roster of speakers for this year’s Auto Finance Risk and Compliance Summit slated to take place May 15 and 16 inRead More

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TCF Shifts Auto Finance Strategy, Anticipates 40% Origination Decline

April 24, 2017 at 12:53 pm 0 comments

TCF Bank initiated a shift in its auto finance strategy during the first quarter by decreasing the mix of superprime loans, in favor of holding more profitable nearprime loans in its portfolio — which will result in a 30% to 40% decline in overall auto originations, the company reported inRead More

Huntington Eyes Fintech Partner for Online Originations

Huntington Eyes Fintech Partner for Online Originations

April 24, 2017 at 10:14 am 0 comments

Huntington Auto Finance is exploring opportunities for collaboration with financial technology startups, to originate loans online, said Richard Porrello, director of auto finance and dealer services. “It’s top of mind for us,” he said. The company also brought Gerrod Parchmon, senior vice president of auto finance product and strategy, ontoRead More

CPS’ Originations Declined 26% Amid ‘Scattered’ Tax Returns, CEO Says

CPS’ Originations Declined 26% Amid ‘Scattered’ Tax Returns, CEO Says

April 21, 2017 at 12:53 pm 0 comments

The first quarter was slow for Consumer Portfolio Services, and for the auto finance industry as a whole, because the tax return boost — which has historically propelled the quarter — has become “scattered,” Charles Bradley, chief executive of CPS said during its earnings call yesterday. The auto lender experienced aRead More

Credit Erosion: Cracks Are Starting to Show in Subprime Auto

Credit Erosion: Cracks Are Starting to Show in Subprime Auto

April 21, 2017 at 11:31 am 0 comments

Fitch Ratings reported subprime delinquencies hit a 20-year high in March, and some of the smaller lenders in the space have cut back on originations, stopped issuing securitizations, or shuttered their doors completely, multiple sources told Auto Finance News. The number of new players entering the space has “slowed down,”Read More

CarFinance Joins AutoGravity’s Suite of Lending Partners

CarFinance Joins AutoGravity’s Suite of Lending Partners

April 20, 2017 at 1:21 pm 0 comments

CarFinance.com, the direct lending arm of Flagship Credit Acceptance, today announced that it’s joining the AutoGravity online vehicle marketplace as a lending partner, the companies announced in a joint press release today.   While CarFinance.com is technically a direct lender, its offers won’t operate or look any different than theRead More

Citizens One Plans For Reduction in Auto Portfolio

Citizens One Plans For Reduction in Auto Portfolio

April 20, 2017 at 12:31 pm 0 comments

Citizens Financial Group Inc. is reducing its auto portfolio to focus on profitability and move “in favor of more attractive student and unsecured assets,” the bank said in its first quarter earnings report.   These changes have not yet impacted loan balances on a year over year basis. Outstandings for theRead More

Richard Porello, director of auto finance and dealer services at Huntington Bancshares Inc., moderates a panel at CBA Live 2017.

Huntington Auto Portfolio Up 12% Post FirstMerit Merger

April 19, 2017 at 12:56 pm 0 comments

Huntington Auto Finance grew its outstandings to $11.1 billion — a 12.45% increase compared to the same period a year ago, according to the bank’s first quarter earnings. Huntington’s portfolio was boosted — in part — by the acquisition of FirstMerit Bank, finalized in August, Richard Porrello, director of auto finance and dealerRead More

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Regions Total Indirect Portfolio Down 2.8% in First Quarter

April 18, 2017 at 12:56 pm 0 comments

Regions Financial Corp.’s indirect lending balances decreased overall by 2.78% — to $3.94 billion — according to its first quarter earnings. However, when you remove activity from third-party partners, the company’s indirect vehicle portfolio actually grew 3.8%, the earnings report states. Indirect vehicle balances — excluding those made from third-party partnersRead More

(L-R) John Redding, partner at Buckley Sandler, and Ken Rojc, managing partner of Nisen & Elliott LLC's Automotive Finance Group, discuss auto finance regulation at CBA Live 2017. (Photo by William Hoffman)

States Step Up Enforcement, Anticipating CFPB Decline

April 17, 2017 at 12:00 pm 0 comments

While there is some optimism for deregulation among auto finance lenders, lawyers are cautioning clients not to not be lax on monitoring, because state attorneys general and financial services departments are stepping into the “void” left by the Consumer Financial Protection Bureau, said Ken Rojc, managing partner of Nisen & ElliottRead More

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