The Impact of Fed Rate Hikes on Loan Portfolios

Last week, members of the Federal Open Market Committee voted unanimously to keep interest rates unchanged, at a range of 1.75% to 2%. Members also issued a statement indicating the Federal Reserve is on track to raise rates in September and December. These hikes follow two rate increases previously enacted this year. The Federal Reserve’s […]

• EFG Companies
• August 17, 2018
• Sponsored

Adding-On Risk: Consumers Rack up Tabs On Ancillary Products

Consumers’ defenses go on high alert when they step into the F&I office to finalize a deal. By that time, they have spent hours in the showroom and researching online, and they just want to drive their car off the lot. Yet, they have to sit through one more sales pitch — for add-on products, […]

• William Hoffman
• August 16, 2018
• Archives, Carousel, Compliance, Features, Operations, Risk, Strategy

Chinese Loan Platform Files for $100M U.S. IPO

Weidai Ltd., a title lender that provides small businesses with credit backed by auto loans, has filed for an initial public offering to raise $100 million, according to an SEC filing. Weidai is a peer-to-peer lender with an early-stage personal credit system wherein users can borrow from the platform with their automobiles as collateral. The site also […]

• Matthew Wood
• August 15, 2018
• Archives, Asia, Capital Markets, Carousel

Used-Car Values Hold Up Despite Forecasted Depreciation

Analysts have predicted high depreciation rates in the used-car market for more than a year now, but those forecasts have yet to come to fruition. In July, Manheim registered its highest level ever in its used-vehicle value index — reporting values at auction are up 5.1% year over year. Black Book’s used-vehicle index uses a […]

• William Hoffman
• August 15, 2018
• Carousel, Risk

Investments in Public Auto Finance Companies Top $9 Billion

Institutional investors had combined shares valued at $9.4 billion in the handful of publicly traded auto finance companies, as of midyear, according to an Auto Finance News analysis of Securities and Exchange Commission filings. The SEC filings record the quarterly U.S. equity holdings of institutional investment managers with at least $100 million in equity assets […]

• Marcie Belles
• August 15, 2018
• Capital Markets, Carousel

AutoFi Adds Lenders to Network Amid Expansion to Used Dealers

AutoFi, a white-label financing platform that’s working with Ford Motor Credit to rollout to Ford franchise dealers nationwide, is adding to its lender network and targeting the used-car space for expansion, Chief Executive Kevin Singerman told Auto Finance News. Earlier this year, the company announced that Chase Auto Finance joined the platform to provide used-car […]

• William Hoffman
• August 15, 2018
• Carousel, Operations, Strategy, Technology

How New Lending Technology is Reshaping the Loan Origination Process

By leveraging modern technology, financial institutions have made daily interactions with their customers frictionless and effortless. But there are still high-volume banking activities where greater efficiencies can be achieved. In particular, new lending technology enabled by two key capabilities — cloud and automation — is reshaping loan origination. Cloud delivers the latest loan software capabilities […]

• defi SOLUTIONS
• August 15, 2018
• Sponsored

Dealers Prioritize Lender Communication, J.D. Power Survey Finds

As interest rates rise, dealer satisfaction with their lender partners is increasingly reliant on quick and meaningful communication with credit staff, according to the 2018 J.D. Power Dealer Financing Satisfaction Survey released this week. “Satisfaction declines by 163 points, on a 1,000-point scale, when dealers are not able to reach the credit staff,” Jim Houston, […]

• William Hoffman
• August 14, 2018
• Archives, Carousel, Credit Performance, Operations