TCF Bank Tops List of CFPB Complaint Offenders

TCF Bank — having exited the auto finance space at yearend — topped the 2017 list of banks with the most complaints per $1 billion in deposits in the Consumer Financial Protection Bureau’s database, according to data compiled by LendEDU. The Minnesota-based bank topped the list for the second year in a row with 13.6 […]
  • William Hoffman
  • January 5, 2018
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Auto Securitization Report Highlights Riskier Outliers

AmeriCredit and Santander Consumer USA stand out as the two lenders securitizing auto loans with an average loan term above 70 months and below a 600 credit score, according to the latest report from DBRS. In AmeriCredit’s most recent issuance included in the report the lender had an average credit score of 580 and an […]
  • William Hoffman
  • December 15, 2017
  • 0

TCF’s Auto Sector Exit Intensifies Profitability Concerns at Regional Banks

The announcement this week that TCF Bank will shutter its indirect auto finance unit, Gateway One Lending & Finance LLC, caps a year that has been volatile for mid-sized regional banks, according to Peter Winter, analyst at Wedbush Securities. “Most banks are surprised how long the credit cycle has lasted for the [mid-tier] bank group,” […]
  • William Hoffman
  • December 6, 2017
  • 0

Bank of the West Issues First Auto ABS Since 2015

Bank of the West closed its first auto asset-backed-securitization since 2015 last week, a $750 million transaction backed by prime retail installment contracts, according to a presale report by Moody’s Investor Service. Fifth Third Bancorp — which has also not securitized since 2015 — issued a $1 billion ABS that closed on Sept. 20. Fifth Third had […]
  • Emma Sandler
  • October 16, 2017
  • 0

Regional Banks Wrangle With ABS Capital Requirements, Lawyer Says

MIAMI — Although some smaller banks such as Fifth Third Bank and USAA Federal Savings Bank have issued auto ABS deals in recent weeks, it will become increasingly hard for these smaller regional banks to keep up with capital requirement regulations through 2019, said Stuart Litwin, Mayer Brown LLP’s co-head of securitization. Regulations require financial […]
  • William Hoffman
  • September 19, 2017
  • 0

Auto ABS Issuers Pull Pools Back From Harvey, Irma Impacted Areas

During one of the busiest times for the secondary market, auto lenders are excluding vehicles affected by Hurricane Harvey from ABS issuances over fears of negative-equity deals, according to presale reports.   Exeter Finance Corp., Fifth Third Bank Dealer Financial Services, Ford Motor Credit Co., and Santander Consumer USA have all removed vehicles from their […]
  • William Hoffman
  • September 12, 2017
  • 1

Fifth Third’s $1B Auto Securitization Boosts Prime Pipeline

Fifth Third Bancorp is prepping its first securitization since 2015, which puts 2017 prime issuances on pace to match the previous year’s rate, according to Thursday’s presale reports. Ford Motor Credit Co., General Motors Financial, and Fifth Third Bank combined to add $3.4 billion in prime auto loan and lease asset-backed securities, bringing total prime […]
  • William Hoffman
  • September 8, 2017
  • 1

Lenders See Regulatory Stability, CFPB Complaints Show

After years of retooling, investing, and stressing over the regulatory environment following passage of the Dodd Frank Act in 2010, an analysis of the Consumer Financial Protection Bureau’s complaint database is showing signs of stabilization. Yes, the overall number of complaints submitted to the bureau has risen — 7,185 last year, up from 5,921 in 2015 […]
  • William Hoffman
  • May 10, 2017
  • 1

Fifth Third Plans to Shrink Portfolio 30% by 2019

Fifth Third Bank plans to reduce its auto portfolio to $7 billion by 2019 as it focuses on more profitable auto loan originations, Chief Financial Officer Tayfun Tuzun said during an earnings call this morning. The bank has already started to slow originations, as it aims for an overall 31% decline in the $10.2 billion […]
  • William Hoffman
  • April 25, 2017
  • 2

The Cost of Compliance [SPONSORED]

Since July 2010, the Consumer Financial Protection Bureau has made significant waves in the auto finance space. In 2013, they issued their bulletin titled “Indirect Auto Lending and Compliance with the Equal Opportunity Act” stating that they would regulate lenders on unanticipated discriminatory practices. With very little guidance on how to be compliant, lenders and […]
  • EFG Companies
  • February 9, 2017
  • 0
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