Regulatory attention on repossession and collection processes has encouraged Pelican Auto Finance LLC to charge off delinquent assets later in the lifespan of deteriorating loans, said Chief Performance and Compliance Officer Joel Kennedy. The industrywide threat of regulatory enforcement from the Consumer Financial Protection Bureau and the Federal Trade CommissionRead More
Post Tagged with: "subprime"
Axis Auto Finance is “optimistic” that the current Canadian subprime lending field is ripe for acquisitions, and is looking for opportunities to buy, said Ilja Troitschanski, president of the auto lender. The Ontario-based company has been growing through an expansion of its dealer network and deepening relationships with existing partners.Read More
American Cycle Finance set a monthly contract goal for its dealers in an effort to increase volume following the company’s acquisition by Cardiff International Inc., Ben Donnarumma, managing director of American Cycle, told Powersports Finance. American Cycle — formerly known as Ride Today Acceptance — makes loans in 15 statesRead More
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
Cardiff International Inc. signed a definitive merger agreement to acquire American Cycle Finance — formerly known as Ride Today Acceptance — as its subsidiary, in an all-stock transaction valued at $5 million. Following the acquisition, Cardiff’s total assets will increase to $13 million, according to a company press release. Powersports Finance firstRead More
CycleOne Financial will expand its breadth of offerings to include new motorcycle financing, after the startup expands its leasing limit — the amount it approves consumers for — beyond $12,000, President Logan Riley told Powersports Finance. Orlando, Fla.-based CycleOne Financial is a subprime lessor that leases all pre-owned motorcycles included in the NADA Guide.Read More
Santander Consumer USA entered into a written agreement with the Federal Reserve Bank of Boston on March 21, and agreed to pay $25.9 million to resolve an investigation in two states regarding the financing and securitization of subprime auto loans, the company revealed in a Securities and Exchange Commission filing today. Investigations wereRead More
The share of deep subprime auto loan securities has grown to nearly a third of the total subprime auto ABS market, Morgan Stanley researchers said in a March report. Auto securities considered deep subprime — Fico scores below 550 — have increased to 32.5% of the subprime market, up fromRead More
As major banks pull back on subprime originations and tighten credit in the auto finance sector, Ally Financial Inc. sees an opportunity to selectively capture nonprime borrowers normally swept up by the banks, while keeping its risk adjustments stable, the company said during its financial outlook conference call today. “I’veRead More
CycleOne Financial is seeking an undisclosed amount of funding for the company’s first Series A round, President Logan Riley told Powersports Finance. The Orlando, Fla.-based powersports lessor launched in April 2015, and has raised $4 million in seed funding to-date, Riley said. CycleOne’s first seed round garnered the company $1Read More
Subprime ABS delinquencies at least 60 days past due reached a peak that hasn’t been observed in two decades, according to data from Fitch Ratings. ABS subprime delinquencies grew 11.6% in February compared to the prior year, to a high of 5.16%, a rate not reached since October 1996 whenRead More
Shared-risk recourse financing — when the dealership guarantees the paper, and essentially co-signs the loan — between dealerships and lenders could reemerge in powersports if subprime lending options falter, Chris Clovis, dealer principle of Freedom EuroCycle Las Vegas and BMW Motorcycles of Las Vegas, told Powersports Finance.
Credit unions as a collective group grew auto loan originations 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 services atRead More
Powersports dealer portals will likely become more consistent among lenders as competition continues to amp up, and as lenders look to match what other players are doing — which could also result in dealer training becoming an easier task, said David Goff, assistant vice president of marketing at Westlake Financial Services.