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FICO launches score to gauge driver risk

Fair Isaac Corp. (FICO) has launched the newest version of its safe driving score this week with a smartphone-based application to assess driver risk.  “Our goal is to get the [safe driving] score to be the industry standard, which can be used by insurance companies to help with their decision process,” Rachel Bell, vice president […]

An inside look at 2 new credit scoring models

Ever since the concept of loaning money was conceived, lenders have been trying to find the ideal way to predict who will pay them back and who will default. Over time, methods for evaluating the likelihood of borrower repayment progressed from individual human judgment calls to more objective credit bureaus and reports. Today, scores often […]

Subprime loan losses decline in prime securitizations

Fresh data from DBRS shows that subprime loans securitized with mostly prime issuance outperform subprime loans in mostly subprime securitizations, according to the rating agency’s Figures on Automotive Securitization Tapes (FAST) report published last week. An issuer’s ABS transaction is categorized as a prime or subprime shelf based on the weighted-average Fico of each securitized […]

Dealership Financing Slips as Customers Prefer Online Options, Survey Shows

Consumers are increasingly opting to skip the dealership when it comes to getting their next auto loan, according to fresh data from Fico. Published last week, Fico’s 2019 U.S. Consumer Survey of Vehicle Finance Perceptions examined how consumers looked at the financing of their vehicle purchases and how auto finance companies are currently meeting their […]

GM Financial Issues $1.25B Securitization to Jumpstart 2019

GM Financial has kicked off 2019 auto asset-backed securitization activity with a $1.25 billion deal issued last week, according to presale reports. Although analysts anticipate macroeconomic headwinds, such as interest rate stresses, to hit the industry this year, Fitch Ratings Agency said in its presale report that losses in GM Financial’s 2016 and 2017 managed […]

GM Financial Profits, Originations Grow in 3Q

General Motors Financial boasted increased profits, higher loan originations, and improved credit quality in the third quarter, according to yesterday’s earnings. Net income for the quarter shot up 118% to $441 million, as the captive notched its fifth straight quarter of higher credit scores underlying finance volume. “We financed 43% of GM new vehicles sales […]

Fair Isaac’s UltraFICO May Be a Boon for Borrowers

Fair Isaac Corp. announced on Monday a new scoring system that would take into account a borrower’s checking, savings, and money market account transactions. By including these activities with traditional FICO metrics, the new system could boost many consumers’ credit scores. The new product, called UltraFICO, was unveiled at the Money 2020 in Las Vegas. […]

Nonprime Originations Shrink Despite a Rise in Portfolio Balances

Nonprime portfolio balances increased year-over-year to $34.6 billion at yearend 2017, yet the number of loans originated during that time decreased, according to data from the 2018 Nonprime Automotive Finance Survey. Balances grew by 5.3% year-over-year in 2017 for the seventh consecutive increase for the 40 nonprime lenders surveyed. However, the number of loans originated dropped by […]
  • Nicole Casperson
  • June 5, 2018