Banking and Lending

Q&A

How some customers cheat themselves

2:00 pm U.S. ET | Jan. 23, 2015
When Hennessy Buick-GMC in Georgia signed up this year for an Equifax system that automatically verifies employment and income, Finance Director Blake Bailey thought the system would mostly identify people who had overstated their income....
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Faster is better in F&I, Power survey shows

12:00 pm U.S. ET | Jan. 22, 2015
The latest J.D. Power Sales Satisfaction Index Study underscores how important it is to get customers in and out of the F&I office as quickly as possible....
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Paperwork error on GM loan will cost JPMorgan $1.5 billion, U.S. court rules

1:24 pm U.S. ET | Jan. 21, 2015
A 2008 paperwork error in a loan agreement with General Motors, before the automaker went into Chapter 11 bankruptcy, will cost JPMorgan Chase $1.5 billion, a federal appeals court ruled today....
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2015 AUTOMOTIVE NEWS WORLD CONGRESS

Good times won't last forever, analyst says

12:01 am U.S. ET | Jan. 19, 2015
The U.S. auto industry is in good shape. But the good times won't last forever, so watch your balance sheets and don't blow it. That was the advice to automakers from John Murphy, lead U.S. auto analyst in equity research with Bank of America Merrill Lynch....
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2015 AUTOMOTIVE NEWS WORLD CONGRESS

FCA's Bigland says loan terms will grow, making price increases more affordable

6:10 pm U.S. ET | Jan. 14, 2015
Fiat Chrysler Automobiles' head of US and Canadian sales says loose credit terms will continue to drive new vehicle sales, even as pent-up demand dwindles in a recovered economy....
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2015 AUTOMOTIVE NEWS WORLD CONGRESS

Analyst forecasts 17 million U.S. sales in 2015, 20 million in 2018

5:27 pm U.S. ET | Jan. 14, 2015
The US auto industry will sell over 17 million vehicles in 2015 and could reach 20 million in 2018, but expect a sharp downturn after that. So predicted John Murphy, lead US auto analyst for Bank of America Merrill Lynch....
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JIM HENRY

Lending practices face new scrutiny: States

11:30 am U.S. ET | Jan. 14, 2015
State officials aren't far behind the federal government in the present crackdown on auto lenders, especially in the subprime segment....
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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

'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

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

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

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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