Santander acquires Gateway One $1B portfolio

Santander Consumer USA  is bolstering its servicing business via a newly inked acquisition of Gateway One Lending & Finance‘s $1.1 billion indirect auto loan portfolio, the companies announced on Wednesday.

The acquisition includes an additional $500 million of indirect auto loan assets that SCUSA will service on behalf of TCF National Bank, the parent of Gateway One.

TCF marks the seventh counterparty on the Service for Others platform, said Santander Consumer USA spokeswoman Annette Rogers. She noted that Santander expects the loans in the Gateway One portfolio to run off in the next couple of years. 

With the transaction, SCUSA aims to grow its portfolio acquisitions and third-party servicing business, company Chief Financial Officer Fahmi Karam said in a press release. “We are continuously identifying and evaluating strategic ways to deploy capital that are accretive to our business and add shareholder value,” he said. The new portfolio adds to Santander’s Service for Others business, which has serviced $10 billion in auto assets for six financial institutions through Sept. 30.

In 2017, Wayzata, Minn.-based TCF stopped originating auto loans. Subsequent to Gateway One’s exit of indirect auto, the lender’s portfolio dropped 38% year over year in 2018, according to Big Wheels Data.

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