CFPB outlines auto finance plans

While the Consumer Financial Protection Bureau focused supervisory and enforcement activity last year on mortgage lending, small business lending and student loan servicing, it hasn’t forgotten about the auto finance industry, according to the agency’s 2018 Fair Lending Report to Congress. In fact, several of the hot-topic issues the bureau has highlighted will have implications […]

• Joey Pizzolato
• July 10, 2019
• Auto Finance Excellence, Compliance & Regulation

Auto issuance drives ABS growth

The auto finance sector is propping up the securitization market, with year-over-year growth climbing 18% through June, according to Kroll Bond Rating Agency’s Midyear 2019 ABS Outlook published last week. Auto securitization volume hit $68.5 billion through June, according to KBRA. “Despite plateauing new-vehicle sales, there has been tremendous year over year growth in auto-related […]

• Bianca Chan
• July 2, 2019
• Capital Markets

Wells Fargo Explores Switch to Flat-Fee Pricing Model

Wells Fargo & Co. is mulling the switch to a flat-fee dealer compensation model to provide consumers “pricing clarity,” Senior Executive Vice President of Community Banking Mary Mack said at Deutsche Bank’s Global Financial Services Conference last month. “Normally, the response in our industry around pricing clarity is more disclosures,” she said. “What we said […]

• Nicole Casperson
• June 13, 2019
• Risk Management

Lengthening Loan Terms a Concern for ‘Healthy’ Subprime ABS Market

PLANO, Texas — The growing popularity of loan terms over 60 months is a concern for the subprime auto securitization market, Amy Martin, senior director of structured finance at S&P Global Ratings, said at the Nonprime Auto Finance Conference last week. “We’re concerned about the lengthening of loan terms because that could lead to a […]

• Joey Pizzolato
• June 10, 2019
• Capital Markets, Risk Management

Fifth Third Merges With MB Financial, Absorbs Powersports Portfolio

Fifth Third Bank announced it’s acquiring Chicago-based MB Financial Bank earlier this week, along with the company’s powersports portfolio. It’s unclear at this time how the merger will impact the powersports space more generally, but one OEM — Vanderhall Motor Works — is not letting the move derail its pursuits to partner with lenders such as MB […]

• William Hoffman
• May 24, 2018
• Risk Management

Congress Rolls Back Dodd-Frank Rules, Relieves Banks of Stress Test Requirements

Fewer than 10 banks will be required to submit stringent stress test analysis to federal regulators following Congress’ passage of bipartisan legislation designed to rollback Obama-era financial regulation. The House voted 258-159 to roll back parts of the 2010 Dodd-Frank Act, which will now designate banks with assets above $250 billion as “systemically important financial […]

• William Hoffman
• May 23, 2018
• Compliance & Regulation

Fifth Third to Acquire MB Financial During Credit Tightening Period for Auto

Fifth Third Bancorp announced plans to buy MB Financial for $4.7 billion today, folding the Chicago-based bank’s growing auto portfolio into Fifth Third’s. The merger is still subject to regulatory approval, but Fifth Third has indicated that it plans to keep a number of MB Financials senior leadership in various roles and noted the similarities […]

• William Hoffman
• May 21, 2018
• Archives, Earnings, Risk Management

Lingering CFPB Consent Order Restricts 3 Lenders to Lower Dealer Markups

As the industry returns to the standard 200- to 250-basis-point cap on dealer markup, three lenders are bound to old consent orders with lower caps that put them at a competitive disadvantage, lawyers told Auto Finance News. Fifth Third Bank, Toyota Financial Services, and American Honda Finance Corp. face a 125-basis-point markup cap based on […]

• William Hoffman
• February 26, 2018
• All Posts, Compliance & Regulation