Post Tagged with: "subprime"

Pelican Alters Charge-Off Practices

Pelican Alters Charge-Off Practices

April 17, 2017 at 11:12 am 0 comments

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

Subprime Lender Axis Looks to Buy in Ripe Canadian M&A Market

Subprime Lender Axis Looks to Buy in Ripe Canadian M&A Market

April 14, 2017 at 11:00 am 0 comments

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 Sets Monthly Goal for Dealers, Ramps Up Training

American Cycle Sets Monthly Goal for Dealers, Ramps Up Training

April 14, 2017 at 11:00 am 0 comments

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

CREDIT: Delinquencies Rise, Lenders Tighten Credit

CREDIT: Delinquencies Rise, Lenders Tighten Credit

April 12, 2017 at 11:00 am 0 comments

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

Ride Today Acceptance Rebrands, Post $5MM Cardiff Acquisition

Ride Today Acceptance Rebrands, Post $5MM Cardiff Acquisition

April 7, 2017 at 10:00 am 0 comments

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 to Offer New Motorcycle, Prime Financing

CycleOne to Offer New Motorcycle, Prime Financing

April 5, 2017 at 9:30 am 0 comments

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

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Santander Pays $26M For Loans Deemed ‘Unfair’

March 30, 2017 at 10:00 am 0 comments

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

Deep Subprime Auto Securities Grow to 32% of the Market

Deep Subprime Auto Securities Grow to 32% of the Market

March 29, 2017 at 12:15 pm 0 comments

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

Ally Bank greets visitors at its 2017 NADA booth in New Orleans. (Photo by William Hoffman)

Ally Targets Nonprime While Keeping Risk Stable

March 21, 2017 at 12:51 pm 0 comments

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

Startup Powersports Lessor Seeks Series A Funding

Startup Powersports Lessor Seeks Series A Funding

March 20, 2017 at 9:30 am 0 comments

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 Spike to 20-Year High, Fitch Says

Subprime ABS Delinquencies Spike to 20-Year High, Fitch Says

March 16, 2017 at 12:07 pm 2 comments

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

Exiting Subprime Powersports Lenders Could Spur Dealer Co-Signers

Exiting Subprime Powersports Lenders Could Spur Dealer Co-Signers

March 15, 2017 at 9:01 am 0 comments

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 Look to Improve, Post 2016 Origination Growth

Credit Unions Look to Improve, Post 2016 Origination Growth

March 14, 2017 at 10:00 am 0 comments

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

Westlake: 3 Tips to Improve Dealer Training Efforts

Westlake: 3 Tips to Improve Dealer Training Efforts

March 13, 2017 at 9:30 am 0 comments

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.

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