Credit Performance | Auto Finance News - Part 5

Coastal Federal Credit Union Grows Originations Despite Shrinking Footprint

Coastal Federal Credit Union is on track to increase auto loan originations 10% this year, to $600 million, despite reducing its footprint within its home state of North Carolina. “We’re doing more business but doing it in a smaller area,” David Jacobs, vice president consumer lending at Coastal Federal Credit Union, told Auto Finance News. […]

Subprime Lender Tricolor Slated for Growth, Multiple Securitizations in 2019

Buy-here, pay-here lender Tricolor Auto Acceptance LLC, a niche player that focuses on Hispanic car buyers, is on track to issue at least two asset-backed securitizations in 2019, Chief Executive Daniel Chu told AFN. Though Chu declined to disclose the size of the potential transactions, he expects the offerings to outpace the $101.7 million securitization […]

Rifco Expands Warehouse Facility Despite Slowing Originations

Rifco National Auto Finance renewed and expanded a securitization warehouse facility with Schedule 1 Charter Bank last week. Though Rifco’s utilization limit was bumped up to $40 million from $30 million, the Canadian lender plans to keep originations in the $120-million range, as stated in its 2019 objectives. “Rifco pursues growth within constraints of profitability […]

Despite Decline in November, Interest Rates Set to Rise, Edmunds Says

The auto industry is bracing for a 25-basis-point increase in interest rates later this month, but a boost in 0% financing deals reduced average APRs in November, according to data provider Edmunds. Average APRs on new vehicles fell to 6% in November from 6.2% in October, according to Edmunds’ Third-Quarter Used-Car Market Report. Zero percent […]

Swapalease Lease Approval Rates Up Slightly

Swapalease, an online peer-to-peer lease transfer company, reported a 70.9% lease approval rate in October, a slight increase from September’s 69.8% rate. The company said it wasn’t surprised by the modest month-over-month increase, saying consumer credit rose at a seasonally adjusted rate of just 3.3% in September, down from the 7% the month before.  And […]

Honor Finance’s Securitization at Risk for Second Downgrade, S&P Warns

Subprime auto lender Honor Finance’s 2016 ABS issuance is on track for a second downgrade, according to S&P Global Ratings. The rating agency last week placed a tranche of notes under downgrade watch, noting that cumulative net losses (CNLs) rose to 27.2% compared with 13.4% during the past four months following the lender’s first downgraded […]

Bigger Risk Appetites, Less Competition Spur Subprime Volume

After eight straight quarters of credit tightening, lenders are widening risk parameters to reach more subprime borrowers. The reentry into lower credit tiers stems from an increase in lenders’ use of alternative data to underwrite loans, which translates to more affordable options for subprime borrowers, said Brian Landau, senior vice president and automotive business leader […]

Warehouse Lenders Boost Flagship’s Funding Facility

Flagship Credit Acceptance’s warehouse lenders bumped up and extended its credit line last month, according to a Kroll Bond Rating Agency presale report released last week. The five financial institutions backing the funding facility increased its capacity by 12.5% — to $900 million — through October 2020. Flagship has approximately 90% capacity remaining on the […]
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