As part of an industry-wide examination, the Department of Justice issued a subpoena to Global Lending Services LLC, an Atlanta-based subprime auto lender, according to a June 24 securitization presale report issued by Kroll Bond Rating Agency.
Specifically, the DOJ requested information related to underwriting criteria for auto loan originations, as well as warranties and representations of the underwriting criteria when the auto loans are securitized.
“The company has hired a law firm to help manage the process and has submitted the information requested by the DOJ,” according to the report, which rated GLS’s first public subprime securitization, a $136 million deal. Global Lending Services, established in 2012, completed a private securitization last year.
GLS was cited twice this year in the Consumer Financial Protection Bureau complaint database; both complaints have been resolved.
