Dealers Face Difficulty Placing Subprime Loans

Extending credit to high-risk customers is harder, but there are ways to get those customers into loans.

Regulators Appear to Endorse Alternative Credit Scoring

A joint statement from the nation’s biggest banking regulators expressed cautious optimism toward emerging decisioning models that could generate more auto loans.

ProMax’s Palmer to Share Loan-Approval Tips at Dealer Summit

Wells Fargo: Subprime Cap Part of ‘Ongoing Risk Management’

IRVINE, Calif. — A statement released by Wells Fargo Dealer Services didn’t deny the bank has placed a cap on subprime auto loans for this year, but it stopped short of saying the move was the bank’s response to media claims of an overheating auto finance market. Citing unnamed executives from Wells Fargo, The New ... Read More »

DOJ, N.Y. Regulator Subpoena Capital One

By: Gregory Arroyo MCCLEAN, Va. ─ Add Capital One to the growing list of finance sources that have received subpoenas from state and federal regulators regarding subprime auto finance originations and securitizations. According to a Feb, 24 regulatory filing with the Securities and Exchange Commission, the finance source received subpoenas from the New York District ... Read More »

Santander Agrees to $9.35 Million DOJ Settlement

WASHINGTON, D.C. — Santander Consumer USA Inc. has agreed to pay at least $9.35 million to resolve a lawsuit filed by the U.S. Department of Justice (DOJ), which charged the auto finance source of violating the Servicemembers Civil Relief Act (SCRA). The complaint and the settlement, which is subject to court approval, were filed on ... Read More »

Equifax Refutes ‘Subprime Bubble’ in New Report

ATLANTA — Equifax Inc. has released its latest economic trends commentary, “Subprime Auto Loans: A Second Chance at Economic Opportunity,” which examines two groups of consumers with deep subprime credit scores over a three-year period: those who originated a subprime auto loan and those who did not. Equifax found that over the three-year time period, ... Read More »

No Subprime Bubble in Sight, Equifax Says

ATLANTA — While year-to-date auto loan growth rates have slowed compared to last year, totals for new credit and the number of new loans originated for auto purchases are at all-time highs, according to Equifax’s latest National Consumer Credit Trends Report. Through June, the total number of new loans originated was 12.5 million, an increase ... Read More »

Texas Car Lender Is Accused of Distortion in Subprime Inquiry

The cycle is a familiar one on Wall Street. First comes a lending boom. And then, after the abuses and excesses of a bubble, there is the government crackdown, reported The New York Times. Now, as federal prosecutors and regulators wrap up many of their largest mortgage investigations, they are shifting their focus to another ... Read More »

CFPB Fines Subprime Finance Source $2.75 Million

WASHINGTON, D.C. — On Wednesday, the Consumer Financial Protection Bureau (CFPB) ordered First Investors Financial Services Group Inc. to pay a $2.75 million fine for providing inaccurate information to credit reporting agencies. The issue was related to computer system flaws, which the agency said impacted “tens of thousands” of the auto finance company’s customers. Texas-based ... Read More »