Utah Credit Union Expands Down Credit Spectrum to Manage Yield

Utah-based Mountain America Credit Union is looking down the credit spectrum to diversify its portfolio with more nonprime and subprime loans amid increased competition in the Utah market, Jade Beckman, vice president of consumer loans, told Auto Finance News. The credit union’s portfolio is roughly 80% prime and super-prime loans, which is “too top heavy,” Beckman […]
  • William Hoffman
  • June 27, 2017
  • 0

Subprime Loan Volume Reaches Record Low, Experian Finds

Subprime loan volume declined 55 basis points in the first quarter compared to the year prior while prime loans increased, Experian’s latest State of the Automotive Finance Market report shows. The subprime loans in 1Q17 comprise 19.8% of the total loan risk distribution compared with 20.4% in 1Q16. As usual, the majority of loan balances […]
  • Huixin Deng
  • June 19, 2017
  • 0

Chase 4Q16 Auto Originations Drop 14% YoY

Chase Auto Finance ended 2016 on a decline – as far as auto originations went. The company originated $8 billion in auto loans and leases in 4Q16, compared with $9.3 billion in the previous quarter, and down from $9.2 billion at the same time a year prior – a 13% drop —  the company announced […]
  • Larissa Padden
  • January 13, 2017
  • 1

Online Refinancier Sees Lower Delinquency Rates

A higher industrywide auto refinancing volume will “absolutely” lower delinquency rates, and iLending Direct is already proving it, Nancy Fitzgerald, president and chief executive of the online financier, told AFN. “[At] one of the largest credit unions I work with — I’ve got a $200 million portfolio with them — we have a 0.7% delinquency […]
  • William Hoffman
  • December 27, 2016
  • 0

Refinancing Shaves Lender Losses by 40%, Analyst Says

Lenders can avoid about 40% of the credit cost by refinancing a loan instead of originating it at the initial purchase, Brad Berning, senior research analyst at Craig-Hallum Capital Group LLC, told Auto Finance News. “That’s the little secret here that people don’t fully appreciate,” Berning said. “You have a pretty steep early stage delinquency […]
  • William Hoffman
  • December 7, 2016
  • 0

Lenders, Dealers, and Consumers Need Aligned [SPONSORED]

The results of a poll released by The Associated Press-NORC Center for Public Affairs Research state that two-thirds of Americans would have difficulty coming up with the money to cover a $1,000 emergency. According to the poll, this spans all income brackets with 75% of people in households making less than $50,000 a year, 67% […]
  • EFG Companies
  • November 9, 2016
  • 0

Navigating the Perfect Storm [SPONSORED]

One of the hot topics at the 2016 NADA Convention was the much debated subprime bubble in relation to rising delinquency rates. Again, industry experts worked to calm everyone’s nerves about Fitch Ratings’ latest report, which brought to everyone’s attention that as of February, 60-day delinquencies had risen to 5.16 percent, the highest rate since […]
  • EFG Companies
  • October 19, 2016
  • 0

Chase Auto 3Q Originations Grow 14% YoY

Chase Auto Finance originated $9.3 billion of auto loans and leases in the third quarter, up from $8.5 billion in 2Q, and up from $8.1 billion at the same time a year prior, the company announced today. The 30+ day delinquency rate for auto was at 1.08% in the third quarter, down from 1.16% in […]
  • Larissa Padden
  • October 14, 2016
  • 2

Auto ABS Credit Shows Continued Deterioration, S&P Says

U.S. auto loan ABS continued to weaken in August, according to a report from S&P Global. Net losses and 60-plus-day delinquencies in the prime and subprime sectors deteriorated on both a month-over-month and year-over-year basis, according to the report released today. The subprime net loss rate increased to 8.35% in August, from 7.53% in July, […]
  • Larissa Padden
  • October 11, 2016
  • 0