Lenders spend countless hours manually verifying loan applicants’ information — specifically, income, residence, employment and proof of insurance. In addition to verifying consumer information, there is ample work required to review deal jackets and corresponding ancillary product contracts, such as vehicle service contracts and GAP.   A big pain point for lenders is handling ancillary product contracts. In the U.S., there are more than 40,000 variations of ancillary product contract form numbers and revision dates, and up to 200 different variations on a state-by-state basis for d ..read more

Banks last week announced in their earning calls plans to continue pulling back on auto lending as interest rates constrained vehicle sales amid improved supply. Citizens Bank, Fifth Third and PNC Financial all saw declines in their auto portfolio. Citizens Bank, for one, expects a $3 billion runoff of its auto book in 2023, and […] Already subscribed? Click below ..read more

Huntington Auto Finance posted year-over-year declines in auto outstandings and originations in the fourth quarter while delinquencies began to rise.  Auto outstandings were at $13.2 billion in Q4, a 1.5% decrease both sequentially and YoY, according to the bank’s earnings supplement. The lender’s auto originations fell 14.3% quarter over quarter and 33.3% YoY to $1.2 […] Already subscribed? Click below ..read more

Ally Financial has extended and lowered its forward flow agreement with Carvana to $4 billion as the retailer faces ongoing debt challenges.   Under the amended agreement, Ally lowered its purchase commitment to up to $4 billion in auto finance receivables from the retailer, down from the previous $5 billion, according to Carvana’s Jan. 20 8-K […] Already subscribed? Click below ..read more

Confidence among executives in the equipment finance industry continues to grow after a two-year low in November 2022, despite concerns about inflation and a possible recession.  The Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) — an assessment of current conditions and future expectations from equipment finance sector executives — landed at 48.5 this […] Already subscribed? Click below ..read more

New-vehicle average transaction prices finished 2022 at a record high following three months of increases, while incentives ticked up but remain historically low.  The ATP for new vehicles increased 1.9% month over month to $49,507, a 4.9% increase year over year, according to Kelley Blue Book. The number of weeks required to buy a new […] Already subscribed? Click below ..read more

United Auto Credit team members were excluded from the Jan. 18 Vroom staffing cuts that saw a 20% workforce reduction at the auto retailer as it continues to focus on profitability.   Vroom reduced its headcount by 275 employees, representing a 20% reduction in Vroom’s staff, according to a filing with the Securities and Exchange Commission. […] Already subscribed? Click below ..read more

Ally Financial lowered its risk appetite in the fourth quarter, contributing to a dip in auto origination volume as the company set its sights on growing home, credit card and other new business lines.  Auto originations totaled $9.2 billion, a decline of 25.2% sequentially and 15.6% year over year, according to Ally’s Q4 earnings supplement. […] Already subscribed? Click below ..read more

Vehicle sales remained mixed across the country at the end of 2022 as holiday traffic bolstered sales in some regions but higher interest rates dampened consumer demand for houses and autos.   The Federal Reserve System on Wednesday released the January edition of its Beige Book, based on data collected as of Jan. 9. The […] Already subscribed? Click below ..read more

Truist’s auto book grew on a year-over-year basis in the fourth quarter, but the bank expects auto production to slow in 2023.  Auto outstandings clocked in at $28 billion, a decline of 1% sequentially but up 5.7% YoY, according to the bank’s earnings release.   “Going forward, loan growth will moderate from the robust levels […] Already subscribed? Click below ..read more