9th person pleads guilty to scamming Ford Credit in Reagor-Dykes case

The executive assistant for former Reagor-Dykes Chief Financial Officer Shane Smith is the 9th employee to plead guilty for her role in the dealership group’s floorplan fraud scheme against Ford Motor Credit, according to the U.S. Attorney for the Northern District of Texas. FBI investigations reveal that Ashley Nicole Dunn, Smith’s executive assistant, has admitted that […]

• Nicole Casperson
• December 6, 2019
• Compliance & Regulation, Risk Management

E-contracts pose risk in auto ABS, Moody’s says

An increase of e-contracts to originate auto loans and leases has created a new source of legal and operational risk to auto asset-backed securitizations, according to a Moody’s Investors Service report. Specifically, the use of e-contracts heightens potential risks related to the securitization trusts’ ownership of assets. A third-party could claim a superior interest in […]

• Bianca Chan
• December 5, 2019
• Capital Markets, Risk Management

Ally’s Doug Timmerman named Auto Finance Executive of the Year

Auto Finance News is pleased to announce Doug Timmerman, Ally Financial’s president of auto, as the inaugural Auto Finance Executive of the Year. Timmerman first joined Ally — then General Motors Acceptance Co. — back in 1986 and is now at the helm of an $80 billion auto portfolio. Under Timmerman’s leadership, Ally broke a […]

• Auto Finance News
• December 4, 2019
• Capital Markets, Compliance & Regulation, Credit Performance, Customer Experience, Earnings, Innovation & Technology, Leasing, People, Risk Management, Sales & Marketing

Regulators urge ‘responsible’ use of alternative data

With lenders increasingly relying on nontraditional data to hone underwriting, five banking regulators have urged that lenders maintain “robust” compliance management programs that include “testing, monitoring and controls” to ensure consumer protection risks are addressed, according to a joint statement released this week.  The regulators — Federal Reserve, Consumer Financial Protection Bureau, Federal Deposit Insurance […]

• Nicole Casperson
• December 4, 2019
• Compliance & Regulation, Risk Management

Quantifying the likelihood of a data breach [webinar]

Across the industry, lenders are becoming dependent on a vast and expanding digital infrastructure. In turn, businesses are increasingly vulnerable to cybercriminals. Should a breach occur, lenders are pressed to quickly diagnose problems and identify solutions to ensure that customers’ personal information is protected. That’s the upshot from the latest webinar hosted by Auto Finance Excellence. Tune […]

• Nicole Casperson
• December 3, 2019
• Auto Finance Excellence, Innovation & Technology, Risk Management

The ripple effect: Distressed repo industry threatens lender losses

Auto loan losses are poised to rise — but not because consumers are failing to make payments. The issue runs deeper, hinging on repossession agencies bogged down by increased competition and rising costs. Repossession companies, typically family-owned businesses passed down through generations, are succumbing to industry challenges. Florida, for one, has lost 23% of its […]

• Bianca Chan
• December 2, 2019
• Features, Risk Management

GM Financial opposes second Reagor-Dykes restructuring plan

GM Financial has filed a motion urging the court to reject Reagor-Dykes’ second proposed restructuring plan because — like its predecessor — the plan fails to answer critical operational and repayment questions, according to a Nov. 26 filing with the United States Bankruptcy Court in the Northern District of Texas. Read more: Reagor-Dykes proposes $14M […]

• Joey Pizzolato
• December 2, 2019
• Risk Management, Sales & Marketing

Wells Fargo settles auto insurance suit for $432M

Wells Fargo & Co. and National General Insurance Co. have agreed to pay $432 million to resolve claims the companies engaged in an unlawful insurance scheme — an increase compared with a June 6 court filing that proposed a $393.5 million settlement.  In the proposed class-action settlement, Wells Fargo agreed to pay $386 million, with […]

• Nicole Casperson
• November 26, 2019
• Compliance & Regulation, Risk Management