Banking and Lending

Takata stock rises after lender expresses support

6:33 am U.S. ET | Jan. 8, 2015

Shares in Takata, the maker of airbags that led to millions of vehicle recalls by global carmakers, rose to the highest price in more than two months as a major lender said it would support the troubled supplier should it fail....
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JIM HENRY

BLOG: 'Flat-rate model,' yes. Flat fees, maybe not.

11:00 am U.S. ET | Jan. 7, 2015

One veteran F&I vendor predicts that in 2015 more lenders will probably adopt a “flat-rate model” to pay dealerships for arranging auto loans....
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JIM HENRY

BLOG: Wishing auto lenders a happy, rational new year

10:30 am U.S. ET | Dec. 30, 2014

Auto lenders are about to embark on another year of worry that the other guy will go “irrational” and start making money-losing loans to gain U.S. market share. They fret they'll be forced to decide whether to give up share or follow suit, sparking losses....
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JIM HENRY

BLOG: Consent orders and the law of unintended consequences

11:14 am U.S. ET | Dec. 23, 2014

The Consumer Financial Protection Bureau quietly terminated a consent order with Minneapolis-based U.S. Bank last month, a contrast to the fuss it made in announcing the agreement in June 2013....
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JIM HENRY

BLOG: Free of U.S. ownership, Ally expects cheaper funds, maybe more subprime deals

3:13 pm U.S. ET | Dec. 19, 2014

Ally Financial is “free at last,” to borrow a phrase CEO Michael Carpenter used earlier this year to describe how it would feel for Ally finally to put six years of government ownership behind it....
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JIM HENRY

BLOG: Will the CFPB redefine “larger”?

12:01 am U.S. ET | Dec. 17, 2014

Auto industry watchers that formally weighed in on the Consumer Financial Protection Bureau’s definition of “larger” auto lenders took predictable positions before the public comment period closed last week....
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JIM HENRY

BLOG: Who distorted what? Wording of CFPB statement will get its own investigation

11:30 am U.S. ET | Dec. 10, 2014

The ombudsman’s office for the Consumer Financial Protection Bureau said it would conduct an independent review into complaints that the CFPB’s press releases don’t match the consent orders they describe -- something auto finance insiders have complained about bitterly but privately, for fear of provoking the bureau.
...
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LINDSAY CHAPPELL

BLOG: Dealer missteps do not a lender meltdown make

12:01 am U.S. ET | Dec. 6, 2014

It shouldn't surprise anybody if heightened regulatory scrutiny on car lending reveals some transactions where a dealership has disregarded the rules on loan paperwork. But it's a mistake to jump from that reality to any suggestion that there is something rotten in the structure of the vehicle lending industry....
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JIM HENRY

BLOG: Auto finance benefits from looser purse strings

12:01 am U.S. ET | Dec. 3, 2014

U.S. households have closed the book on a “deleveraging period,” the government's fancy way of saying households have quit spending less and saving more. And that's good news for auto financing....
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EDITORIAL

Discrimination? Share the data

12:01 am U.S. ET | Dec. 1, 2014

Did federal regulators use reliable data analysis to conclude that dealers may be discriminating in their lending practices? A new study commissioned by the American Financial Services Association, a lender group, challenges the statistical method used by the Consumer Financial Protection Bureau....
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JIM HENRY

BLOG: Military ends paycheck deductions for car loans

12:01 am U.S. ET | Nov. 26, 2014

The Department of Defense last week made it impossible for service members to use the reliable but old-fashioned military allotment system to make auto loan payments -- a small-scale example of a couple of bad apples in auto lending ruining things for everyone else....
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U.S. auto loan originations at highest level in 9 years, N.Y. Fed says

6:14 pm U.S. ET | Nov. 25, 2014

Americans took out the most auto loans in nine years during the third quarter, according to the Federal Reserve Bank of New York's quarterly Household Debt and Credit Report....
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ARLENA SAWYERS

BLOG: Popping the subprime bubble myth

12:01 am U.S. ET | Nov. 19, 2014

There is no subprime auto loan bubble, darn it. That message came through loud and clear in session after session during the recent Used Car Week conference sponsored in Las Vegas....
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LARRY P. VELLEQUETTE

BLOG: Looking for a new F&I product? Mull this

12:01 am U.S. ET | Nov. 5, 2014

Consider this a free idea -- the kind that hopefully somebody out there takes and develops and uses to make a lot of money....
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JAMES B. TREECE

BLOG: Why loan length doesn’t matter

12:01 am U.S. ET | Oct. 22, 2014

There’s another reason not to fret over longer new-car loans: The numbers can be misleading....
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JIM HENRY

BLOG: Visions of a paper-free auto finance world

12:01 am U.S. ET | Oct. 15, 2014

What will auto finance look like in 2020? Chase Auto Finance exec Bill Jensen did some speculating recently at the Auto Finance Summit in Las Vegas....
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JIM HENRY

BLOG: Subprime is no runaway train

12:01 am U.S. ET | Oct. 8, 2014

There it goes again, as Ronald Reagan might have said. The New York Times is still hammering a theme that subprime auto loans will endanger the U.S. economy in the way that subprime mortgages helped bring about the Great Recession....
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JIM HENRY

BLOG: Lenders must look through consumers' eyes

12:01 am U.S. ET | Oct. 1, 2014

In the second of what's shaping up to be a series of attacks on subprime auto finance -- the first was in July -- The New York Times last week made a breathless page one story out of a years-old device: the vehicle starter interrupt....
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GM says ratings upgrade will aid lending arm, support global sales push

12:34 am U.S. ET | Sept. 26, 2014

GM plans to leverage its return to investment grade, which could lower borrowing costs, by strengthening its lending arm, CFO Chuck Stevens said. GM was forced to sell control of its former GMAC lending arm to raise money, and it now has a smaller, more strategic, finance unit that is getting stronger....
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JIM HENRY

BLOG: Auto finance industry still paying for past sins

12:01 am U.S. ET | Sept. 24, 2014

Consumer Financial Protection Bureau regulators seem to have a caricature of a plaid, polyester sport coat-wearing car salesman in mind when they talk about auto retailing....
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JIM HENRY

BLOG: The case for casting a wider net with credit apps

12:01 am U.S. ET | Sept. 17, 2014

Auto lenders complain they hate it when dealership F&I managers send them credit applications outside their preferred range of credit scores....
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Report: Lenders keeping lid on risky business

12:01 am U.S. ET | Sept. 8, 2014

Experian's latest State of the Automotive Finance Market report, covering the second quarter, suggests lenders aren't headed down any slippery slopes when it comes to discipline....
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JIM HENRY

BLOG: New rules for asset-backed securities could impact subprime lenders

12:01 am U.S. ET | Sept. 3, 2014

The Securities and Exchange Commission last week laid out new rules for asset-backed securities, the financial practice in which lenders bundle loans and sell them off to investors to raise money to fund new loans....
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JIM HENRY

BLOG: Is CFPB guilty of spin?

12:01 am U.S. ET | Aug. 27, 2014

Remarks delivered by Consumer Financial Protection Bureau Director Richard Cordray and language used in a bureau statement last week were a lot harsher than the dry legalese of the consent order signed this month by the CFPB and First Investors Financial Services Group....
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JIM HENRY

BLOG: Did dealers hurt themselves with the carve out?

12:01 am U.S. ET | Aug. 20, 2014

There’s no mistaking that federal regulators are serious about policing auto lenders. By extension, auto dealers feel they’ve got a big target on their backs, too....
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