Eisman’s biggest short is subprime lender Credit Acceptance | Auto Finance News Eisman’s biggest short is subprime lender Credit Acceptance | Auto Finance News
Auto Finance News
Subscribe
  • Home
  • News
    • All News
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Compliance & Regs
    • Risk Management
    • Capital & Funding
    • Powersports
  • Events
    • DEMOvation Challenge 2021
    • Auto Finance Risk Summit
    • Auto Finance Summit
    • Auto Finance Innovation Summit
  • EXCELLENCE
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest
    • Magazine Issues
  • Podcast
  • Data
    • Lender Ranking
    • Fixed Rate Outstandings at Banks
    • Securitizations
    • Market Share Monitor
AFN PLUS
Wednesday, April 14, 2021
Log In
No Result
View All Result
Auto Finance News
  • Home
  • News
    • All News
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Compliance & Regs
    • Risk Management
    • Capital & Funding
    • Powersports
  • Events
    • DEMOvation Challenge 2021
    • Auto Finance Risk Summit
    • Auto Finance Summit
    • Auto Finance Innovation Summit
  • EXCELLENCE
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest
    • Magazine Issues
  • Podcast
  • Data
    • Lender Ranking
    • Fixed Rate Outstandings at Banks
    • Securitizations
    • Market Share Monitor
AFN PLUS
Log In
No Result
View All Result
Auto Finance News
No Result
View All Result

Eisman’s biggest short is subprime lender Credit Acceptance

Bloomberg News by Bloomberg News
January 22, 2021
in Compliance & Regulation
Reading Time: 1 min read

Steve Eisman, the Neuberger Berman Group portfolio manager made famous by successfully wagering against subprime loans a decade ago, said his biggest short now is auto lender Credit Acceptance Corp. because he expects the company to face a crackdown from regulators.

“This is not a short thinking that the company is going to suffer credit losses,” Eisman said Friday on Bloomberg Television. “It has nothing to do with it. This is a pure regulatory story.”

Shares of Credit Acceptance tumbled in the wake of Bloomberg’s reporting, dropping 5.1% to $328.10 at 2:58 p.m. in New York.

Credit Acceptance is battling a lawsuit filed last year by Massachusetts Attorney General Maura Healey alleging it made deceptive loans, misled investors and engaged in unfair collection practices. The company, one of the nation’s largest subprime auto lenders, has denied the allegations.

“The complaint is an unbelievable document, incredibly detailed, providing a litany of predatory lending practices — the only way to describe it is disgusting,” said Eisman, whose subprime bets leading up to the 2008 financial crisis were chronicled in “The Big Short,” the book by Michael Lewis that spawned a movie. “There is a potential here for this company to be regulated to a much, much lower level of profitability at the very least.”

A representative for the Southfield, Michigan-based Credit Acceptance didn’t respond to a request for comment on Eisman’s remarks.

Edwin Groshans of Height Capital Markets told clients this month that auto lenders are due to receive increased scrutiny from regulators in President Joe Biden’s administration. He said Rohit Chopra, Biden’s pick to lead the Consumer Financial Protection Bureau, is a particularly negative development for companies such as Credit Acceptance.

–By Shahien Nasiripour (Bloomberg)

Tags: bloomberg newsCredit Acceptance Corp.regulation
Previous Post

CFPB’s new heads, and more staff moves

Next Post

Weekly Wrap: Q4 earnings kick off

Related Posts

How lenders can maximize loan deferral and extension compliance
Compliance & Regulation

Weekly Wrap: Tackling compliance ambiguities in auto finance

April 12, 2021
Remote vs. digital: A regulatory balancing act
Compliance & Regulation

Remote vs. digital: A regulatory balancing act

April 9, 2021
Supreme Court backs President’s power to fire CFPB director
Compliance & Regulation

Supreme Court decision provides clarity on TCPA

April 7, 2021
Next Post
Independent dealers sour on slipping inventories

Weekly Wrap: Q4 earnings kick off

By subscribing you agree to our Terms of Use and Privacy Policy

Latest Magazine Issue

INNOVATION & TECHNOLOGY

My BMW app integrates BMW Financial Services for omnichannel experience

My BMW app integrates BMW Financial Services for omnichannel experience

April 6, 2021
‘Chargers everywhere’: Biden maps $174B path for EV boom

‘Chargers everywhere’: Biden maps $174B path for EV boom

April 1, 2021

CORONAVIRUS

direct to consumer lending

April brings uptick in 0% APR financing

April 9, 2021
Dealers Feel the Pressure of Competition in Used-Car Market

HyreCar sees surge in delivery drivers amid pandemic-spurred shift

April 8, 2021

SPONSORED

PenFed auto marketing campaign promotes its open charter

Examining effective specialty recovery processes in auto finance

April 12, 2021
Closing the gaps in the digital lending experience requires a new way of coaching agents

Closing the gaps in the digital lending experience requires a new way of coaching agents

March 22, 2021
Self-insurance, blanket coverage or CPI: Which is better for your auto loan portfolio?

Self-insurance, blanket coverage or CPI: Which is better for your auto loan portfolio?

March 3, 2021

About

ABOUT US

PRIVACY TERMS

ADA COMPLIANCE

CODE OF JOURNALISM ETHICS

Contact Us

ADVERTISE

HELP CENTER

EMAIL SIGN UP 

Follow Us

twitter twitter linkedin podcast

©2021 Royal Media & Auto Finance News

No Result
View All Result
  • Home
  • News
    • All News
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Compliance & Regs
    • Risk Management
    • Capital & Funding
    • Powersports
  • Events
    • DEMOvation Challenge 2021
    • Auto Finance Risk Summit
    • Auto Finance Summit
    • Auto Finance Innovation Summit
  • Excellence
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest
    • Magazine Issues
  • Podcast
  • Data
    • Lender Ranking
    • Fixed Rate Outstandings
    • Securitizations
    • Market Share Monitor
  • +PLUS
  • SUBSCRIBE
  • Log In / Account

© 2020 Royal Media

Go to mobile version