Banking and Lending

JIM HENRY

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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JIM HENRY

The New York Times editorial got it wrong

12:01 am U.S. ET | Aug. 18, 2014
An editorial in the Saturday, Aug. 9, issue of The New York Times made unreasonable demands on dealers and automotive lenders while grossly misrepresenting automotive lending....
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JIM HENRY

N.Y. Times' demands are misguided

12:01 am U.S. ET | Aug. 13, 2014
Subprime auto loans have gotten most of the attention, but an editorial in The New York Times on Saturday makes other demands dealers and lenders are sure to dislike....
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Lenders wary of feds' scrutiny

12:01 am U.S. ET | Aug. 11, 2014
The U.S. Department of Justice sent subpoenas to the two largest issuers of securities based on subprime auto loans, leaving other subprime lenders to wonder what the agency is looking for and who might be subpoenaed next....
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JAMES B. TREECE

GM Financial subpoena shifts investigation away from dealers

12:01 am U.S. ET | Aug. 6, 2014
When dealers saw headlines saying the U.S. Department of Justice had subpoenaed GM Financial ast month to produce documents relating to its subprime auto loan contracts, they could be excused for worrying that this represented another threat to their arranging car loans for consumers....
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Canadian dealer buries a Jeep, hires an ambassador and puts on the Ritz

Canadian dealer buries a Jeep, hires an ambassador and puts on the Ritz

At Bay King Chrysler, Dodge, Jeep, Ram in Hamilton, Ontario, dealer Jamie Richter has put luxury-hotel touches in his new showroom. They include concierges who see to the needs of service customers. Mon., December 15
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