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Capital Markets

E-contracts pose risk in auto ABS, Moody’s says

An increase of e-contracts to originate auto loans and leases has created a new source of legal and operational risk to auto asset-backed securitizations, according to a Moody’s Investors Service report. Specifically, the use of e-contracts heightens potential risks related to the securitization trusts’ ownership of assets. A third-party could claim a superior interest in […]

Ally’s Doug Timmerman named Auto Finance Executive of the Year

Exeter scraps IPO

Auto ABS volume surpasses 2018 levels

Testing the resiliency of auto ABS

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From Auto Finance Excellence

GM Financial doubles down on digital marketing

5 Questions With… Huntington Bank’s Rich Porrello

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Volvo subscription service eyes growth with FICO alliance

Volvo Car Financial Services’ subscription model, Care by Volvo, is making an effort to increase its volume of users via a partnership with Fico’s Decision Modeler. Care by Volvo, which operates in Germany and the U.S. — except New York — is looking to scale the subscription service across Europe and North America, the company […]

Nicole Casperson
December 5, 2019
Innovation & Technology, Sales & Marketing

GM Financial doubles down on digital marketing

GM Financial is raising awareness for its dealer-focused digital marketing campaign — called Secret Sauce — through a guerrilla marketing effort on the lots of its dealership partners, complete with food, swag and networking opportunities. The Secret Sauce campaign is a monthly video series designed to highlight a top-performing General Motors dealer, allowing them to […]

E-contracts pose risk in auto ABS, Moody’s says

Ally’s Doug Timmerman named Auto Finance Executive of the Year

Auto Finance News is pleased to announce Doug Timmerman, Ally Financial’s president of auto, as the inaugural Auto Finance Executive of the Year. Timmerman first joined Ally — then General Motors Acceptance Co. — back in 1986 and is now at the helm of an $80 billion auto portfolio. Under Timmerman’s leadership, Ally broke a […]

Auto Finance News
December 4, 2019
Capital Markets, Compliance & Regulation, Credit Performance, Customer Experience, Earnings, Innovation & Technology, Leasing, People, Risk Management, Sales & Marketing

Regulators urge ‘responsible’ use of alternative data

With lenders increasingly relying on nontraditional data to hone underwriting, five banking regulators have urged that lenders maintain “robust” compliance management programs that include “testing, monitoring and controls” to ensure consumer protection risks are addressed, according to a joint statement released this week. The regulators — Federal Reserve, Consumer Financial Protection Bureau, Federal Deposit Insurance […]

Nicole Casperson
December 4, 2019
Compliance & Regulation, Risk Management

5 Questions With… Huntington Bank’s Rich Porrello

Five Questions With is a monthly Q&A segment on AutoFinanceExcellence.org that offers a glimpse of what senior industry executives are thinking about outside the boardroom. Read on to find out. As President of Huntington Auto Finance, Rich Porrello is at the helm of a $12.5 billion dollar business that serves more than 4,500 dealerships across […]

4 applications for titling trusts

Imagine this scenario: A leasing company would like to use its fleet of 500 motor vehicles, titled in several states, to secure a loan from a finance company. In order for the lender to hold a security interest in the vehicles, its lien must be noted on all the title certificates in the various states […]

Marshall Grodner
December 4, 2019
Auto Finance Excellence, Compliance & Regulation

Westlake president outlines strategy to cut costs

Lowering operating costs in 2020 is top of mind for Westlake Financial Services Group President Ian Anderson. “My goal really isn’t growth as much as lowering costs for 2020,” Anderson told Auto Finance News. Currently, Westlake’s operating expense ratio is at 2.58% of overall income, and “our goal is to get below 2% next year,” […]

Bianca Chan
December 3, 2019
Exclusive, Operations

How aftermarket products give subprime lenders an edge

Fueled by off-lease volume and consumer demand, used-vehicle sales are nearing record levels. For lenders focused on used vehicles — particularly lenders with subprime practices — these are opportune times. However, lenders need to differentiate their services to scale a profit. By leveraging cloud, auto-decisioning and paperless lending technologies, lenders gain a competitive edge with […]

Aclaró expands into prime auto lending market

Aclaró Inc., the rapidly-evolving artificial intelligence company, has expanded its products and services to the prime auto lending market after successfully launching its disruptive technology in the subprime market. It moves into prime auto loans, permitting a range of lenders, borrowers, and auto dealers to take advantage of industry-leading insights to create better long-term financial […]

State of the subprime auto lending market

Working in the subprime auto lending market, the tendency is to focus on the threats and opportunities that are directly in front of us. We zone in on our specific subprime auto portfolios and do our best to obtain the highest risk-adjusted returns. Ultimately, it is easy to get stuck in the weeds rather than […]

Why low balance letters are not working

Regardless of the industry, there comes a time when certain business practices are followed even though they aren’t the most efficient or most profitable. The legendary Rear Admiral Grace Murray Hopper, a pioneer of computer programming, used to say that the most dangerous phrase in any language is, “We’ve always done it this way.” The auto […]

Aclaró releases EcoSystem 3.0, adds new board member

Aclaró, which provides disruptive technologies to the automotive, financial and government sectors, has released Aclaró EcoSystem 3.0 (ES 3.0), a game-changing toolset for vehicle purchasers, lenders and dealers, and added a new member to its board. With these announcements, the artificial intelligence software company continues the rapid advancement toward its overarching mission of helping lenders, […]

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