Auto Finance News | The News That Drives the Industry - Part 6

Thinning margins spur Ford Credit downgrade

Ford Motor Co.'s weakened credit profile will likely have negative implications for its access to funding and financing volumes after a downgrade by Moody’s Investors Service this week. The downgrade moved Ford’s rating to non-investment speculative-grade status.  Moody’s said an upgrade for Ford is “unlikely in the near term,” as margins are expected to remain […]

Ally Financial scores investment-grade rating

Ally Financial’s long-term default rating has reached investment-grade status after an upgrade by Fitch Ratings, thanks to a boost in profitability stemming from increased used-car originations. The upgrade is a plus for Ally since investment-grade paper is typically in higher demand by investors, Michael Taiano, senior director of the Financial Institutions Group at Fitch Ratings, […]

Honda Finance injects $1B into ABS market

Loans in American Honda Finance Corp.‘s latest securitization have the shortest original and remaining terms when compared with other issuers’ pools, according to a Moody’s Investor Services presale report. The $1.1 billion securitization is on track to be upsized to $1.3 billion based on investor demand. Read more: American Honda Finance Dodges Class-Action Lawsuit The loans backing […]

Credit margins shrinking in auto amid Fed rate cut, economist says

Despite the Federal Open Market Committee’s (FOMC) goal of boosting the economy and reducing the cost of borrowing money for lenders and banking institutions, the auto finance market may not see the intended benefits of Wednesday’s cut to the Federal Reserve’s benchmark interest rate, Jonathan Smoke, chief economist at Cox Automotive, told Auto Finance News. […]

CPS speeds funding with quicker verifications

Consumer Portfolio Services can verify loan information more reliably with the help of an upgraded system, SVP of Sales Curt Powell told Auto Finance News. The original data feed was continually interrupted because it was “not compatible” with the pace and volume of information coming in, Powell said. After moving the feed to more dedicated […]

FICO launches score to gauge driver risk

Fair Isaac Corp. (FICO) has launched the newest version of its safe driving score this week with a smartphone-based application to assess driver risk.  “Our goal is to get the [safe driving] score to be the industry standard, which can be used by insurance companies to help with their decision process,” Rachel Bell, vice president […]

Ally to lead innovation workshop at AFS

Every company wants to be on the forefront of innovation, but practically, it can be hard to pinpoint exactly what that looks like. Kirsten Elsworth, senior director of business systems, data and analytics at Ally Insurance, will address that issue in the Innovation Workshop at the Auto Finance Summit 2019. During the workshop session, Elsworth […]

Westlake Financial enters Canadian market

Westlake Financial Services will start originating loans in Canada in the first quarter of 2020 via a newly inked deal with Axis Auto Finance, Ian Anderson, group president of Westlake, told Auto Finance News. Axis will originate and service the loans for a fee, and Westlake will retain the loans on its balance sheet, Anderson […]

Honcker rebrands to Rodo, unveils proprietary tech

Car-leasing platform Honcker has rebranded to Rodo, the company announced via LinkedIn on Thursday. The rebrand comes in tandem with the rollout of new proprietary rebates, incentives and desking technology, Chief Executive Nathan Hecht told Auto Finance News. Prior to the rebrand, the company was licensing part of its software stack through third parties, Hecht said, […]

Banks increase market share in 2Q

Banks captured auto loan and lease share from credit unions, captives and buy-here, pay-here lenders in the second quarter, according to Experian‘s second-quarter State of the Automotive Financing Market report published today. Banks’ total financing – both loans and leases for new and used vehicles – increased year over year to 32.7% from 30.2%. By […]

Citizens One increases approvals for loans with mid-600 scores

Citizens One Auto Finance has boosted its approval rate 10% for loans with credit scores in the 640-to-680 range, thanks to a recent refresh of its lending scorecard, President Craig Lamp told Auto Finance News. Providence, R.I.-based Citizens has always been a “full prime provider,” Lamp said. Though it will underwrite loans with credit scores […]

Fraudsters plead guilty in $1m auto loan scheme

Fraudsters John O’Day and Denise White each face a maximum of 30 years in federal prison for a scheme that racked up more than $1 million in fake auto loan applications, the Department of Justice announced last week.  The scheme, which ran from April 2016 to January 2018, defrauded five auto lenders and 20 victims. […]
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