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Tag Archives: asset backed securities

Lengthening Loan Terms a Concern for ‘Healthy’ Subprime ABS Market

PLANO, Texas — The growing popularity of loan terms over 60 months is a concern for the subprime auto securitization market, Amy Martin, senior director of structured finance at S&P Global Ratings, said at the Nonprime Auto Finance Conference last week. “We’re concerned about the lengthening of loan terms because that could lead to a […]

Joey Pizzolato
June 10, 2019
Capital Markets, Risk

Loan Losses Are Worse Than Expected at Two Subprime Auto Lenders

Recent subprime-auto bonds from Prestige Financial Corp. and Exeter Finance Corp. are performing worse than anticipated, at a time when many competitors are at least meeting expectations, according to credit raters. The challenges both face may be remnants of a push for rapid growth a few years back, when these smaller lenders temporarily loosened credit […]

Bloomberg News
May 2, 2019
Capital Markets, Credit Performance

Jumping In: Online Lenders Join the ABS Market

From the April issue: The auto securitization market is being injected with new blood. It’s been about 15 years since an auto financier securitized a new asset class, but Fair is gearing up to do just that. Fair, a used-car leasing platform with a subscription-based model, has started the process of getting a rating and […]

Bianca Chan
April 11, 2019
Capital Markets, Credit Performance, Features, Operations, Strategy

Sierra Auto Finance Unloads Servicing Portfolio

Sierra Auto Finance transferred servicing of its portfolios to First Investors Financial Services on March 2, seven months after the subprime lender put a pause on new originations due to “unfavorable market conditions.” Sierra, founded in 2012, had $144 million of outstanding receivables at yearend 2018, down from $185 million in July 2018, according to […]

Joey Pizzolato
March 19, 2019
Capital Markets, Operations

Seasoned Loans Outperform Unseasoned Loans in Subprime Securitizations — Eventually

Fresh research from Kroll Bond Rating Agency shows that, contrary to popular belief, seasoning may not be the most accurate indicator of a subprime loan’s performance. Data from KBRA’s Subprime Auto Loan ABS report published Thursday illustrates that "very seasoned" subprime loans — those with 48 months of payment history — exhibited higher net losses […]

Bianca Chan
February 25, 2019
Capital Markets, Credit Performance, Risk

Tech Partnerships Help Drive Digital Transformation in Auto Finance

Aclaro, a company that develops tools for companies in the automotive industry, recently announced game-changing news that validates its mission of helping small, scrappy dealerships compete with larger competitors. As part of its efforts to deliver five-star service for its clients, Aclaro joined the Microsoft Partner Network, allowing the company to continue building its business […]

How Lenders Should Leverage the Power and Promise of Artificial Intelligence

Technology does not wait for rules or regulations. Artificial intelligence (AI) is no exception. The potential profit associated with fintech speeds up innovation, but it also increases the risk of implementing machine intelligence without assessing potential hazards. Simply put, we do not understand how some machines solve problems with deep learning algorithms. This risk can […]

How to Leverage Current Machine Learning and AI Tools in Auto Lending

Auto dealers have heard the hype about how machine learning (ML) and artificial intelligence (AI) are going to transform their businesses. Typically, there are usually two binary outcomes that are discussed. On one hand, the promise of the future seems so bright. Instead of relying on intuition and gut feeling, many divisions of their businesses […]

The Value of User Experience When Managing Risk

Much has been written about the rise of machine learning and artificial intelligence and how it will impact the auto lending industry. While there has been a significant amount of hype, the promise of artificial intelligence is simply game changing. The most obvious application is that thinking machines will be able to assess risk and […]

The Benefits of Artificial Intelligence in Auto Lending

We are inundated with discussion about how new technologies promise to change the way that we do business and live our lives. Yes, many of these proclamations offer rhetorical flourish and grand visions. That said, there are new technologies available and startups that are maximizing these technologies to transform the auto industry — even today. […]

How Lenders’ Response Time Influences Dealer Relationships

Automotive OEMs rate vehicle performance by the time it takes to go from zero to 60 in seconds. This is a measure of energy conversion – fuel, spark, movement. While this is a mechanical situation, a comparison can be made to business response times. While fuel is a potential auto loan customer, the spark is […]

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Tag Archives: asset backed securities

Lengthening Loan Terms a Concern for ‘Healthy’ Subprime ABS Market

Loan Losses Are Worse Than Expected at Two Subprime Auto Lenders

Jumping In: Online Lenders Join the ABS Market

Sierra Auto Finance Unloads Servicing Portfolio

Seasoned Loans Outperform Unseasoned Loans in Subprime Securitizations — Eventually

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