Compliance & Regulation | Auto Finance News - Part 5

New system links lenders to repo agents in real time

In an effort to curb compliance issues related to wrongful repossessions, ALS Resolvion has implemented a system that links lenders and repo agents in real time. “Over the past couple of years, the Consumer Financial Protection Bureau has started to focus more on the repossession activities within lenders that they regulate,” Michael Levison, chief executive at Charlotte, […]

Texas legislature expands definition of ‘debt buyer’

The Texas state legislature has provided consumers with additional protection from debt collectors in the passage of the Fair Consumer Protection Act earlier this month. Specifically, the act serves to clarify and expand the definition of a debt buyer beyond the Consumer Financial Protection Bureau’s definition of “a person or a company that regularly collects […]

Bipartisan robocalls bill assigns stiffer FCC enforcement

A bipartisan bill introduced by House lawmakers on Thursday would give the Federal Communications Commission the authority to issue harsher penalties against callers who violate robocall laws, according to a press release by the House Committee on Energy and Commerce. This week, the bill will move forward through the Communications and Technology Subcommittee. Led by […]

Slowing Inventory Turnover Reduces Floorplan ABS Payment Rates

As vehicles idle on dealers’ lots, auto lenders face slower repayment of their floorplan loans. Nissan Motor Acceptance Corp., for one, has been in breach of a floorplan trigger since February, when its three-month payment rate dropped below 35%. As such, NMAC had to increase credit enhancement levels in its floorplan trust. Ally Financial, Ford […]

Competitive (Dis)Advantage: The Data Reporting Standard Set to Disrupt Auto Finance

A new accounting regulation with a staggered implementation schedule is on track to disrupt the auto finance playing field. The Financial Accounting Standards Board (FASB) rule called Current Expected Credit Losses — or CECL, for short — requires lenders to reserve for the lifetime of a loan’s losses upon origination, which could double loss provisions […]

CFPB Supervisory Highlights Provide Guidance on Deficiency Balances and Rebates

Under Richard Cordray’s Consumer Finance Protection Bureau (CFPB), it was “compliance malpractice” not to take heed of the Bureau’s enforcement actions when determining how to comply with federal consumer finance laws. Both Acting Director Mick Mulvaney and current CFPB Director Kathy Kraninger have stated that the Bureau will no longer engage in such “regulation by enforcement.” While this change in position is […]

Senators Urge Regulatory Oversight of AI to Prevent Discrimination

As auto lenders increasingly turn to technology like artificial intelligence to improve business practices, two senators are pressing regulators to ensure anti-discrimination laws keep up with the innovation. Sen. Elizabeth Warren (D-Mass.) and Doug Jones (D-Ala.) sent a letter to the leaders of the Consumer Financial Protection Bureau, Federal Reserve, Office of the Comptroller of […]
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