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New Barn Open For Business

New Barn Open For Business

August 30, 2014 at 10:30 am 0 comments

A company originally founded in the back room of a car salesroom has taken over a unique space that will help it grow to more than 150 employees in the next few years, from the 90 it currently has. That company is Moneybarn, a specialist in the near-prime and subprimeRead More

Exeter Builds Servicing Facility With Room To Grow

Exeter Builds Servicing Facility With Room To Grow

August 29, 2014 at 10:30 am 0 comments

Exeter Finance Corp. opened a new servicing center June 23, at a time of origination — and delinquency — growth for the Irving, Texas-based nonprime lender. The two-level, 50,000-square-foot facility, with capacity for nearly 500 employees, houses 90 people so far. With an open floorplan and picture windows, the servicingRead More

‘Killer Apps’ May Pressure Residuals

‘Killer Apps’ May Pressure Residuals

August 29, 2014 at 9:30 am 0 comments

It’s obvious that in the auto finance sector, 72-month-term paper entails many risks. Those risks are amplified when it comes to loans with 84- and even 96-month terms. Of course there is the normal yield curve risk, particularly in a world of low interest rates where the only way bondRead More

Subprime Loans Close to Pre-Crash Levels: N.Y. Fed

Subprime Loans Close to Pre-Crash Levels: N.Y. Fed

August 28, 2014 at 11:45 am 0 comments

The N.Y. Federal Reserve Bank released a study last week indicating that subprime loans, while on the rise, have not reached pre-crash levels as a proportion of total loans. Subprime loans — those made to consumers with credit scores of 620 or lower — accounted for 22.1% of loans outstanding in theRead More

Nonprime Delinquencies Climbed 20% As Portfolios Grew In 2013

Nonprime Delinquencies Climbed 20% As Portfolios Grew In 2013

August 28, 2014 at 9:30 am 0 comments

Though nonprime loan portfolios increased last year, delinquency rates grew at a faster clip, according to the 2014 Non-Prime Auto Financing Survey released in late May. The annual survey, commissioned by the National Automotive Finance Association and conducted by BenchMark Consulting International, aggregated data from 22 banks and independent financeRead More

Sonic in Negotiations to Offer Private-Label Financing

Sonic in Negotiations to Offer Private-Label Financing

August 27, 2014 at 11:45 am 0 comments

Sonic Automotive Inc. is in discussions with a pair of lenders to offer private-label financing to car buyers, Executive Vice President of Operations Jeff Dyke told Auto Finance News. Dyke declined to specify the lenders while negotiations are ongoing. Separately, Sonic plans to launch a chain of pre-owned vehicle stores called EchoParkRead More

Lenders ‘Fear Retribution’ by Regulators

Lenders ‘Fear Retribution’ by Regulators

August 27, 2014 at 11:20 am 0 comments

Regulators have grown so aggressive with enforcement that many auto lenders now have a “fear of retribution” if they even talk publicly about compliance. Lenders tell Auto Finance News that this “fear of retribution” is real. One CEO of a subprime lending company told us that a review by the ConsumerRead More

Longer Loan Terms Becoming the Norm in Canada

Longer Loan Terms Becoming the Norm in Canada

August 27, 2014 at 10:30 am 0 comments

Extending loan terms is becoming increasingly common in Canada, according to a report from Bloomberg. The average loan term for light vehicles in Canada is 69 months, but loans with terms as long as 96 months are growing in popularity. Government regulators have echoed the International Monetary Fund in calling near-record consumerRead More

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