BMO Bank’s Auto Portfolio Declined 41% in FY 2017

BMO Financial Group reported a 41% decline in its indirect auto loan portfolio year over year in the fourth quarter, which ended in October, according to the company’s earnings released today. The Canadian bank’s portfolio now sits at $3.2 billion, down from $5.5 billion during the same quarter the year prior. Additionally, net income from […]
  • William Hoffman
  • December 5, 2017

BMO Harris Grants Snap Finance Credit to Service $1B in Leases

The credit facility of BMO Harris Bank will enable Snap Finance to serve more than $1 billion in lease-to-own finance agreements, the companies announced today. The $100 million credit facility will allow Snap Finance to “continue to expand with new merchant partners and increase capacity,” and will help “even more businesses grow” in terms of […]
  • Huixin Deng
  • August 28, 2017

BMO Harris Eyes Dealer Finance Expansion

BMO Harris Bank is fostering greater collaboration between its retail consumer auto loan business and commercial dealer finance arm in search of opportunities to extend credit to dealerships in the U.S., Craig Harter, head of the company’s indirect auto finance group, told Auto Finance News. The added cooperation between the two wings of the Chicago-based […]
  • William Hoffman
  • July 19, 2017

BMO Harris Expands to Capture Near-Prime Loans

BMO Harris is expanding its credit band down into near-prime as the market opens up amid pullback from larger banks, Craig Harter, the company’s head of indirect auto finance, told Auto Finance News. “Traditionally, as a reputation, we’re a prime and super-prime lender,” Harter said. The changes will impact a “wide variety” of underwriting standards, but it […]
  • William Hoffman
  • July 12, 2017

BMO Harris Revamps Flat-Rate Pricing After 3-Year Effort

Three years after its adoption, dealer compensation at BMO Harris Bank has changed from a single, 3% flat rate, Auto Finance News has learned. The new program, which went into effect June 1, is a three-tiered model with 1%, 3%, and 5% rates that increase in sync with loan terms, Craig Harter, the company’s head […]
  • William Hoffman
  • July 5, 2017

GE Capital Unloads Transportation Finance Business

Toronto-based BMO Financial Group completed the acquisition of General Electric Capital’s U.S. transportation finance business, the companies announced today. The net earning assets of the unit are valued at $11.9 billion CAD or $8.9 billion USD. The sale is a part of the strategy to focus the GE Capital arm on industrial operations, such as […]
  • Auto Finance News
  • December 1, 2015

BMO Harris Keeps Flats But Drops Autos in “Non-Core” States

Chicago-based BMO Harris Bank said its recent move to drop indirect auto lending in 12 “non-core” states is unrelated to its decision last year to switch to flat fees to compensate dealers. BMO Harris considers Illinois, Wisconsin, Indiana, Minnesota, Kansas, Missouri, Arizona and Florida to be its core states, bank spokesman Patrick O’Herlihy said today. […]
  • Jim Henry
  • October 2, 2015

BB&T Switches to Flat Fees, Ending Dealer Markup as of July 1

BB&T Dealer Financial Services is the first Top 20 auto lender so far to switch to flat fees from dealer markup, apparently to head off potential problems with regulators over dealer discretion in setting consumer interest rates. “We’ve been testing and evaluating flat-fee products for the last two years so we believe this is a […]
  • Jim Henry
  • June 19, 2015

Bank of Montreal Auto Chief Advocates for Shorter Loan Terms

This March will mark one year since Bank of Montreal (BMO) raised rates on longer-term loans, and Head of Retail Lending Raymond O’Kane has no plans to temper his message in 2015, despite some lost business. “My plan going forward is to become more aggressive and more vocal, I’m not backing off at all,” O’Kane […]
  • Larissa Padden
  • February 20, 2015

BMO Harris Says Volume Drop Unrelated to Flats

Back in April, BMO Harris Bank was the first major lender to switch to flat fees from a dealer-reserve compensation structure. Since then, it appears the bank’s loan volume has taken a dive. Through April, BMO Harris Bank had been averaging 11,700 finance contracts per month, according to Experian Automotive’s AutoCount data. In the two […]
  • Marcie Belles
  • December 1, 2014
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