Sierra Auto Finance transferred servicing of its portfolios to First Investors Financial Services on March 2, seven months after the subprime lender put a pause on new originations due to “unfavorable market conditions.”
Sierra, founded in 2012, had $144 million of outstanding receivables at yearend 2018, down from $185 million in July 2018, according to a Kroll Bond Rating Agency asset-backed securitization surveillance report.
Read more: Borrowers Granted Extensions Four Times More Likely to Repay Loans, KBRA Finds
Sierra completed its first and only securitization in June 2016. The Class A notes were paid off in November 2018, and KBRA has affirmed the ratings of the remaining two tranches, noting that it “will continue to monitor the developments of this servicing transition,” as per a company press release.
Auto Finance News was unable to reach Sierra Auto Finance for comment. First Investors Financial Services declined to comment further due to confidentiality obligations.
For more content like this, check out our upcoming event Auto Finance Accelerate, May 13-16 at the Omni San Diego. Visit www.AutoFinanceAccelerate.com to register.
