Banking and Lending

JIM HENRY

Why the F&I office still matters

12:01 am U.S. ET | March 5, 2014
A recent McKinsey study says one of the main reasons consumers still come to a brick-and-mortar dealership instead of buying cars online is to get questions answered about finance and insurance that can't be addressed, or can't be answered “conclusively,” online....
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Ford wants to expand credit lines to $12 billion, report says

2:04 pm U.S. ET | Feb. 26, 2014
Ford is seeking to expand its credit lines by $1.3 billion to $12 billion. The company is planning to raise a $9 billion revolving loan that expires in five years and a $3 billion financing pact that lapses in three years....
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JIM HENRY

The disconnect lingers between auto finance and the CFPB

12:01 am U.S. ET | Feb. 26, 2014
The auto finance industry and the Consumer Financial Protection Bureau have a fundamental disconnect. The auto finance industry sees itself as unique while the CFPB sees it as just one more consumer finance sector, essentially not that different from mortgages, credit cards or student loans....
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JIM HENRY

Auto loans just keep growing

12:01 am U.S. ET | Feb. 19, 2014
Auto loans had another double-digit growth spurt in the fourth quarter, Experian Automotive reports.
Total auto loan balances outstanding reached $798.5 billion in the quarter, an increase of 11 percent from the 2012 period and the highest total since Experian started publishing its numbers in 2007. The third-quarter total of $782.9 billion had also been a high, up 15 percent from the same 2012 period....
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PSA said to near Santander deal to strengthen lending arm

Feb. 14, 2014 15:16 CET
PSA is close to a deal for a joint venture with Banco Santander to strengthen the financing of its lending arm, two people familiar with the matter said....
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JIM HENRY

No need to panic as big banks pare dealers

12:01 am U.S. ET | Feb. 12, 2014
Recent news that Chase Auto Finance and TD Auto Finance are looking to trim their dealership networks brought swift reactions of “Here we go again” from some members of the dealership F&I community....
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Ally says Q4 net income falls, GM relationship extended

12:35 pm U.S. ET | Feb. 6, 2014
Ally Financial said today it has posted fourth-quarter net income of $104 million and lower pretax income for its auto finance business. The lender also said its preferred-lender relationship with General Motors, set to expire Dec. 31, was extended while the companies negotiate a new pact....
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Ally, CFPB poles apart on discrimination breadth, evidence

12:01 am U.S. ET | Feb. 3, 2014
Ally Financial and the Consumer Financial Protection Bureau are miles apart on core issues, such as how to measure discrimination and how widespread it is, says Ally CEO Michael Carpenter....
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GABE NELSON

How a Philadelphia dealer might help end the CFPB feud

3:20 pm U.S. ET | Jan. 26, 2014
Kerry Pacifico was a nominee for Time Dealer of the Year. He didn’t win. But the 89-year-old dealer can head home to Philadelphia with satisfaction regardless, knowing that his struggle to satisfy fair-lending regulators a decade ago now offers a way for thousands of his fellow dealers to stay in the Consumer Financial Protection Bureau’s good graces....
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JIM HENRY

Enjoy the carve-out, dealers, while it's on the table

12:01 am U.S. ET | Nov. 27, 2013
While carving their turkeys this Thanksgiving, dealers can be thankful franchised new-car dealerships were carved out of the Consumer Financial Protection Bureau's jurisdiction after intense lobbying by the National Automobile Dealers Association....
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JIM HENRY

‘Disparate impact’ theory must wait for day in court

12:01 am U.S. ET | Nov. 20, 2013
Opponents of the “disparate impact” theory, which the Consumer Financial Protection Bureau is employing to prove discrimination in auto finance, were hoping the theory would get its day in court next month before the U.S. Supreme Court -- and lose....
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CFPB tells auto lenders flat fees are just one option

2:55 pm U.S. ET | Nov. 14, 2013
Flat fees aren’t the only way auto lenders can pay dealers for arranging car loans without a risk of racial bias, top officials at the Consumer Financial Protection Bureau said today....
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JIM HENRY

For industry, more alarms from CFPB

12:01 am U.S. ET | Nov. 13, 2013
The auto finance industry had better start worrying about the Consumer Financial Protection Bureau a lot more than it is. At a Senate Banking Committee hearing on Tuesday, CFPB Director Richard Cordray made it sound as if dealers routinely double or triple the consumer's buy rate...
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CFPB chief concedes need for balance in auto-loan oversight

4:24 pm U.S. ET | Nov. 12, 2013
Richard Cordray, director of the Consumer Financial Protection Bureau, said he wants more “openness and transparency” for the agency's oversight of auto lending, but added that the agency still has strong concerns about how dealerships arrange loans....
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Frothy subprime borrowing drives U.S. sales, raises alarms

1:27 pm U.S. ET | Nov. 8, 2013
As the fifth anniversary of the Federal Reserve's policy of keeping interest rates near zero approaches, the market for subprime borrowing is once again becoming frothy, this time in the car industry. As with mortgages in 2006 and 2007, the central bank's stimulus is making it easier for U.S. consumers with spotty credit to buy cars as yield-starved investors purchase riskier bonds linked to auto loans....
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JIM HENRY

CFPB's roster of lender probes grows

12:01 am U.S. ET | Nov. 6, 2013
Ally Financial is just the latest auto lender to acknowledge the Consumer Financial Protection Bureau is investigating it with an eye toward enforcing the CFPB's interpretation of anti-discrimination laws....
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Ally’s Q3 net falls 76%, but auto operations flat

1:45 pm U.S. ET | Nov. 5, 2013
Ally Financial said today its auto finance volume and pretax income were flat in the third quarter, even as overall net tumbled due to special charges....
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JIM HENRY

CFPB sheds light but still scary

12:01 am U.S. ET | Oct. 30, 2013
A year ago, I noted that while the Consumer Financial Protection Bureau had made some ominous noises, it had studiously avoided talking about auto loans. Dealers and lenders were worried. This year we know a lot more about how the CFPB thinks the indirect auto lending model should change. But that knowledge hasn't made the CFPB less frightening to the industry....
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AutoNation's Jackson blasts CFPB for being 'determined' to find lending bias

4:19 pm U.S. ET | Oct. 24, 2013
AutoNation Chairman Mike Jackson blasted the Consumer Financial Protection Bureau today for being “bound and determined” to find discrimination in auto lending whether or not it exists, at least in his company's case....
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JIM HENRY

Are dealers, lenders at odds on CFPB?

12:01 am U.S. ET | Oct. 23, 2013
Dealers and lenders have said they are united in opposing the Consumer Financial Protection Bureau's proposed changes to the indirect lending model, but they could be moving out of sync....
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Toyota leverages stellar credit rating for financing edge

12:01 am U.S. ET | Oct. 23, 2013
Toyota's in-house lender is leveraging the automaker's AA- credit rating and cash to offer low rates and keep customers coming back. The company's $37 billion cash pile and credit ratings that outrank GM and Ford enable its Toyota Financial Services unit to offer more loans and take on riskier borrowers....
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Hong Kong tycoon likely winner of U.S. loan to Fisker, report says

10:04 pm U.S. ET | Oct. 17, 2013
An investor group led by Hong Kong tycoon Richard Li is the likely winner of a government loan owed by Fisker Automotive, the now-dormant maker of plug-in hybrid sports cars, people familiar with the matter told Reuters on Thursday....
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JIM HENRY

The silver lining in tiff with CFPB

12:01 am U.S. ET | Oct. 16, 2013
Amid the industry’s current flap with the Consumer Financial Protection Bureau over dealer reserve, there remains a bright spot: The auto finance business is profitable and volumes are growing....
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JIM HENRY

VW Credit: No chill from shutdown yet

12:01 am U.S. ET | Oct. 9, 2013
So far, the U.S. government shutdown hasn't had any measurable effect on at least one captive finance company's auto finance business....
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Nissan joins Hyundai in giving customers a break during U.S. shutdown

4:32 pm U.S. ET | Oct. 3, 2013
Nissan Motor Acceptance, the automaker's captive finance arm in the United States, is taking a page out of Hyundai's book and giving customers a break on loan and payments during the federal government shutdown....
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Special Report
Fewer bosses, Disney savvy, $2 idea lift stores

Fewer bosses, Disney savvy, $2 idea lift stores

A Chrysler Group dealership chain is stripping away layers of management to sell cars faster. A Chevrolet-Cadillac store is enchanting customers through Disney training. Mon., July 21
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