Originations shot up 71% year over year at American Credit Acceptance, to $510 million last quarter, according to a presale report from Kroll Bond Rating Agency. The report details ACA’s latest securitization, a $302.8 million transaction slated to close Aug. 22.
On the heels of its loan growth, ACA added 12 employees to its servicing and collection departments last quarter — bumping up its total in those areas to 520, according to Kroll.
At midyear, Spartanburg, N.C.-based ACA had $3.1 billion of loans outstanding and $1.7 billion of warehouse capacity. The subprime lender is on track to renew a $150 million JPMorgan warehouse facility before it matures in September, Kroll noted.
The securitization — ACA’s third this year — is backed by loans for new and used cars and motorcycles. Average credit scores on ACA loans are in the low-to-mid 500 range, though 12.6% of the loans earmarked for securitization have no Fico score. Kroll’s loss expectations for the transaction range between 27.4% and 29.4%.Like This Post