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

Lenders dip down credit spectrum, boost originations in 2Q

As auto lenders opened their books of business to borrowers further down the credit spectrum, total auto debt increased 4.8% year over year to a record $1.3 trillion, according to the New York Federal Reserve Quarterly Report on Household Debt and Credit.  The report, which uses data from Equifax, showed that auto debt from loans […]

Carvana’s originations skyrocket in 2Q

Carvana’s second-quarter earnings were “the most successful quarter-to-date” for the finance platform, Chief Financial Officer Mark Jenkins said during the company’s earnings call yesterday. Carvana’s originations shot up 124.7% year over year to $1.2 billion, compared with $525 million in the prior-year period. In addition, finance gross profit per unit was a record $1,100 — […]

Loose auto underwriting points to ‘weak’ credit outlook, Moody’s says

Lenders did little to tighten auto loan underwriting last quarter despite worsening delinquency trends. Last quarter, 3.5% of bank respondents in the Federal Reserve's Senior Loan Officer Opinion Survey reported to have somewhat tightened credit standards. The remaining 96.5% said standards remained basically unchanged. Given the "rapid rise in auto loan debt," however, banks would […]

American Credit Acceptance adds collectors as originations climb

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 […]

Blinker lands $10M investment

Peer-to-peer used-car buying app Blinker scored a $10 million investment yesterday, in a funding round led by Thornapple River Capital, according to a company press release. According to Crunchbase data, this is the company’s first funding round. Blinker, which launched in 2016, uses a proprietary decisioning system to fund loans on its platform. The Denver-based […]

Credit Acceptance discloses 3 new investigations

Credit Acceptance Corp. (CAC) is at the center of regulatory actions initiated over a two-week period by the Consumer Financial Protection Bureau (CFPB) and the attorneys general of Mississippi and New York, the company disclosed in a July 30 10-Q filed with the SEC. “We don't have any insight into when and why those things […]

Consumer groups seek extension of FDCPA comment period

Consumer advocacy groups have formally requested a two-month extension — to Oct. 21 — on the comment period for the Consumer Financial Protection Bureau‘s proposed debt collection rule. The comment period is currently set to expire Aug. 19. Seven advocacy groups signed the letter, citing the long and complicated nature of the proposal. “The proposal’s […]

FTC unwanted call website signals heightened scrutiny

The Federal Trade Commission’s recently launched interactive website showing do-not-call (DNC) and robocall data signals a “significantly increased focus” on autodialer and customer phone call consent issues, McGlinchey Stafford attorney Robert Savoie said, noting that the scrutiny is likely to lead to increased investigations. However, there might be a silver lining, Savoie said. “Given that […]

SNAAC’s SVP of servicing joins AFS speaker faculty

Auto Finance News is proud to welcome Chris Mitcham, senior vice president of servicing at Security National Automotive Acceptance Co. (SNAAC), to the speaker faculty at the 19th annual Auto Finance Summit, which will take place at the Bellagio in Las Vegas on Oct. 28-30. You can find the full agenda here. Mitcham will give […]

Ford Credit scales back leasing

Ford Motor Credit’s lease volume has dropped to its lowest level in more than four years, according to an analysis by Auto Finance News. The captive originated 81,000 leases last quarter, down 22% year over year. In the past four years, Ford Credit’s leasing volume has dropped below 90,000 units only four times — once […]

GM Financial strengthens instant messaging with IBM Watson

GM Financial will integrate IBM Watson, an AI-powered chatbot, to its consumer-facing messaging app as soon as the end of the third quarter, Bob Beatty, executive vice president of customer experience, told Auto Finance News. The app, which launched last year, is averaging 62,000 downloads per month so far this year, Beatty said, noting that […]

What Capital One’s data breach means for auto finance

In the wake of Capital One Financial’s data breach, auto lenders should evaluate ways to tighten up cybersecurity and identify points of vulnerability. The breach compromised 140,000 Social Security Numbers, and 80,000 bank account numbers were made available, according to the bank’s response to the breach. However, the impact might be “somewhat contained,” said Brian […]
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