GMF Originations Climb Despite Lower 3Q Earnings

Consumer loan originations climbed 64% at General Motors Financial Co. in the third quarter, and lease originations shot up 134% year over year, the captive reported today. GMF originated $4.1 billion of loans and $1.7 billion of leases in the three-month period. Despite the higher volumes, GMF earnings fell 1.9% year over year to $158 million, on the heels of $7 million in pre-tax acquisition and integration expenses for the quarter.

Through September, GMF had $31.1 billion of consumer loans and leases outstanding. The captive also had a $7.2 billion commercial loan portfolio as of Sept. 30. Meanwhile, GMF’s delinquencies inched higher. Consumer finance receivables 31-to-60 days delinquent comprised 3.9% of the portfolio at Sept. 30, up from 3.8% at the same time last year. Accounts more than 60 days delinquent were 1.7% of the portfolio at quarter’s end, compared with 1.5% a year ago.

GMF also disclosed that it had been served with an additional subpoena by the Department of Justice, to the Securities and Exchange Commission in a 10-Q filed on Thursday.

In the filing, GMF explained that the company had been served with “additional investigative subpoenas to produce documents from state attorneys general and other governmental offices relating to our subprime auto finance business and securitization of subprime auto loans.”

The first subpoena was issued by the DOJ in late July, in relation to a civil proceeding for potential violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.