Federal Reserve amends stress test model for auto loan losses

The Federal Reserve has changed the way it calculates estimated auto loan losses in the 2019 Dodd-Frank Act stress test, according to the Supervisory Stress Test Results published last week. Specifically, the Federal Reserve enhanced the probability of default component and the loss-given default component. The report notes that these adjustments change the way certain […]

• Joey Pizzolato
• June 24, 2019
• Credit Performance, Operations

Senators Urge Regulatory Oversight of AI to Prevent Discrimination

As auto lenders increasingly turn to technology like artificial intelligence to improve business practices, two senators are pressing regulators to ensure anti-discrimination laws keep up with the innovation. Sen. Elizabeth Warren (D-Mass.) and Doug Jones (D-Ala.) sent a letter to the leaders of the Consumer Financial Protection Bureau, Federal Reserve, Office of the Comptroller of […]

• Nicole Casperson
• June 17, 2019
• Compliance, Risk

Santander Consumer USA Initiates Second Stock Repurchase Program

Santander Consumer USA’s board of directors has authorized a plan to buy back $400 million of company stock this quarter, according to a May 24 Securities and Exchange Commission filing. The announcement comes on the heels of an inaugural $200 million share-repurchase program completed in January. The Federal Reserve Board of Governors did not object […]

• Joey Pizzolato
• May 28, 2019
• Capital Markets, Operations, Strategy

CFPB Chief Kraninger Appointed Chairman of FFIEC

Kathy Kraninger, director of the Consumer Financial Protection Bureau, was appointed chairman of the Federal Financial Institutions Examination Council last week, according to a company press release. The FFIEC is a formal inter-agency body tasked with prescribing recommendations to promote uniformity in the supervision of financial institutions through uniform principles, standards, and report forms. Its […]

• Joey Pizzolato
• April 9, 2019
• Compliance, Operations

CFPB, OCC, Federal Reserve Prioritize Fintech Regulation in 2019

WASHINGTON, D.C. — Half of the bankers at CBA Live 2019 identified investments in technology as their No. 1 priority for the immediate future. On the heels of that audience response, a panel of regulators urged that innovation and technology is a top priority, as well. One of the top objectives of the Consumer Financial […]

• Nicole Casperson
• April 2, 2019
• Innovation & Mobility, Risk, Technology

Powell Signals Prolonged Fed Pause as Inflation Lags, Risks Loom

Federal Reserve Chairman Jerome Powell said interest rates could be on hold for “some time” as global risks weigh on the economic outlook and inflation remains muted. “We don’t see data coming in that suggest that we should move in either direction. They suggest that we should remain patient and let the situation clarify itself […]

• Bloomberg News
• March 21, 2019
• Capital Markets, Strategy

Credit Unions Gain Share With Bigger Risk Appetites, Dealers Say

From the February issue: Credit unions have been grabbing marketshare by dipping into lower credit scores and making more exceptions, a sampling of dealers nationwide told Auto Finance News. As a result, larger banks and other financial lending institutions are missing out on potential borrowers, dealers said. Lower Valley Credit Union and Numerica Credit Union […]

• Bianca Chan
• March 1, 2019
• Credit Performance, Features, Operations, Strategy

Term Extensions Trump Rate Cuts for Tackling Affordability, TransUnion Says

Despite concern that rising interest rates will slow new-car sales, loan term extensions will move the needle quicker on monthly loan payments, Brian Landau, senior vice president and TransUnion’s auto line of business leader, told Auto Finance News. Auto lenders originated 7.1 million loans through the third quarter of 2018, up 0.5% year over year, TransUnion reported this […]

• Nicole Casperson
• February 22, 2019
• Operations, Strategy