Subprime New-Car Sales Fall As Industry Refocuses on Prime Credit

New-vehicle sales were flat among the high-credit borrowers in the first two months of the year, while subprime scores dropped 9%, according to a J.D. Power report. Those sales rebounded a bit later in the quarter as subprime new-vehicle sales ended up 40 basis points lower year over year, dropping to 9.5% of total sales […]

Auto ABS Poised to Grow at Slower Clip in 2018

DBRS Ratings anticipates slower growth in the auto ABS sector this year of 4% to 5% down from the 16% growth rate the year prior, according to a report forecasting trends in the market.   Although new-vehicle sales are expected to come down this year, DBRS still expects growth in the used market given that […]

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 […]

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 […]

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 […]

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 […]

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 […]
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