Kroll Bond Rating Agency | Auto Finance News | Auto Finance News

KBRA Downgrades Honor Finance Securitization — Again

Honor Finance’s 2016 asset-backed securitization has been downgraded for a second time by Kroll Bond Rating Agency due to cumulative net losses increasing to 31.2% compared with 29.4% over three collection periods, the rating agency reported April 25. The now-defunct subprime lender’s Class B notes were downgraded to B+ from BB+, and its Class C […]

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 […]

Sierra Auto Finance Unloads Servicing Portfolio

Sierra Auto Finance transferred servicing of its portfolios to First Investors Financial Services on March 2, seven months after the subprime lender put a pause on new originations due to “unfavorable market conditions.” Sierra, founded in 2012, had $144 million of outstanding receivables at yearend 2018, down from $185 million in July 2018, according to […]

Will Ride-Hailing Replace Personally-Owned Cars? Execs Weigh In

LAS VEGAS —  The disruptive impact that ride-hailing companies are having on auto finance is evident with the success of Uber and Lyft. While both companies are not profitable, Uber 's revenue surged 43% to $11.3 billion in 2018 and Lyft's revenue doubled to $2.2 billion. However, the question confronting auto finance is whether ride-hailing […]

Roadblocks Ahead for Consumer-Owned AV Adoption, Execs Say

LAS VEGAS — While autonomous vehicle fleets are sparking widespread interest in the industry, executives at an SFIG 2019 panel said widespread adoption of consumer-owned AVs is still at least a decade away. “We’re in the early stages of an industry revolution,” said Theresa O’Neill, managing director at Bank of America Merrill Lynch. The consensus […]

Borrowers Granted Extensions Four Times More Likely to Repay Loans, KBRA Finds

Despite Honor Finance’s previous unorthodox loan extension practices, new research by Kroll Bond Rating Agency maintains that loan extensions remain a viable loss-mitigation tool for securitization servicers. "In moderation, extensions are a very useful tool — they maximize cash flow to the ABS trust," Brian Ford, senior director of structured finance research at KBRA, told Auto […]

Subprime Lender Tricolor Slated for Growth, Multiple Securitizations in 2019

Buy-here, pay-here lender Tricolor Auto Acceptance LLC, a niche player that focuses on Hispanic car buyers, is on track to issue at least two asset-backed securitizations in 2019, Chief Executive Daniel Chu told AFN. Though Chu declined to disclose the size of the potential transactions, he expects the offerings to outpace the $101.7 million securitization […]
Page 1 of 612345 ...Last »