2019 Survival Guide: How Lenders Are Planning for the Year Ahead

From the January issue: 2018 was a strong year for auto finance as delinquency rates dropped, the economy grew, and consumer demand remained high. However, the new year finds lenders and analysts bracing for an economic slowdown. But that’s not the only worry. New-car purchases are lagging, according to Manheim’s November data, which has new-vehicle sales […]

• Nicole Casperson
• January 4, 2019
• Archives, Compliance, Credit Performance, Features, Innovation & Mobility, Risk, Strategy, Technology

Subprime Originations Expected to Grow in 2019 Despite Lender Caution, TransUnion Says 

Anticipated growth in originations to subprime borrowers is a sign that the auto industry is normalizing and will stay healthy in 2019, Brian Landau, senior vice president and TransUnion’s auto line of business leader, told Auto Finance News. Following a lender pullback from the subprime space in 2016 and 2017, subprime as a percent of […]

• Nicole Casperson
• December 12, 2018
• Credit Performance, Operations, Strategy

Bigger Risk Appetites, Less Competition Spur Subprime Volume

After eight straight quarters of credit tightening, lenders are widening risk parameters to reach more subprime borrowers. The reentry into lower credit tiers stems from an increase in lenders’ use of alternative data to underwrite loans, which translates to more affordable options for subprime borrowers, said Brian Landau, senior vice president and automotive business leader […]

• Bianca Chan
• November 21, 2018
• Credit Performance, Risk, Strategy

Synthetic Auto Fraud Balances Top $600M

Lenders are focusing their fraud departments on dealership activities lately, but lenders “discount the quantity and the scale of identity fraud and synthetic fraud that may be hitting them,” Geoff Miller, head of global fraud and identity solutions for TransUnion, told Auto Finance News. Outstanding suspected synthetic balances increased 5.2% year over year through 2Q18 […]

• Nicole Casperson
• October 2, 2018
• Risk, Strategy

Survey Shows Lack of Interest in Refinancing

Although a number of direct lenders and fintech loan aggregators have focused on offering refinance products in the past year, the majority of consumers may be uninterested, according to a poll conducted by Auto Finance News. Using Survey Monkey, 100 consumers with current auto loan payments were asked about marketing materials they have seen about […]

• William Hoffman
• September 12, 2018
• Strategy

Consumer Credit Scores Rise But Risks Remain, Executive Says

Nearly half of consumers saw their credit scores increase by 20 points or less this year, but subprime lenders should be cautious of the real impact it has on consumers’ ability to repay, said Damon Edmondson, chief of analytics at debt purchaser and servicing company Flock Specialty Finance. Credit scores increased by an average of […]

• William Hoffman
• September 6, 2018
• Credit Performance

Prime Credit Drives Increase in Originations, TransUnion Says

Auto lenders originated 6.79 million loans through the first quarter, which marks the first year over year increase in the number of loans since some financial institutions began pulling back in 3Q16, TransUnion reported on Wednesday in a new report analyzing the strength of consumer credit 10 years after the recession.  The increase was driven by a 3% year-over-year increase […]

• Nicole Casperson
• August 22, 2018
• Credit Performance

Lenders Should Consider Refinancing to Boost Lagging Originations, TransUnion Says

Although auto sales have been up through the first half, a number of analysts are expecting sales to drop through the end of the year. The first sign of trouble is that sales were down year over year through July, which is typically the start of one of the most active sales periods of the […]

• William Hoffman
• August 9, 2018
• Operations, Strategy