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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 […]

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 […]