Modernized credit scores gain traction despite operational hurdles
As lenders explore the adoption of FICO 10T and VantageScore 4.0, setbacks and data limitations remain.
Banking
Citing bad loans, USDA bars a group of lenders from lending program
The move comes about a year after rising delinquency levels prompted SBA to raise lender fees and tightened underwriting standards in its flagship 7(a) program.
Dems say SBA left businesses vulnerable to ‘predatory’ financing
Sens. Ed Markey and Ron Wyden argue that the Small Business Administration neglected to warn small firms of the risks of merchant cash advances and closed off a key "escape route" from the resulting debts.
S&P says VantageScore 4.0 could work for MBS ratings
Standard & Poor's found modeled foreclosure frequency and loss coverage to be in similar ranges as classic FICO but showed concern about potential bias.
House reworks institutional investor ban in housing bill
House lawmakers modified a ban on big-money investors from purchasing single-family homes, broadening the exemptions for build-to-rent properties and eliminating requirements in a Senate version of the bill that affected investors divest their holdings.
Household debt at a high, risks lurk beneath stable arrears
Serious delinquency transitions in older mortgages inched up, hinting at the impact of an FHA rule change's impact in conjunction with other stressors.
Groundfloor’s consumer loan venture is in a $3 million capital raise
Consumer Credit Portfolio II is not a securitization, but Groundfloor is known for two deferred-pay residential transition loan ABS that are paying investors higher premiums than rated RTLs.
Late student-loan payments are rising. Is a domino effect coming?
The 90-day-plus delinquency rate on student loans hit 10.3% in the first quarter, and New York Fed researchers warn that a second wave of defaults could be coming. Evidence is mixed regarding the likely impact on other consumer-lending segments.
Westlake Automobile’s latest ABS raises $1.4 billion
The transaction comes to market with initial hard credit enhancement levels of 33.60%, 22.90%, 13.50% and 8.65% across the subordinate tranches, higher than the previous deal.
Merchant financing from Kapitus backs a $150 million ABS
Kapitus funds receivables through two revolving securitizations totaling $575 million, and a $230.1 million warehouse line of credit from Truist, which matures in June 2027.
Lobel’s latest subprime auto ABS pool raises $223.8 million
Borrowers in the pool had a non-zero weighted average credit score of 608, with a 112.12% loan-to-value (LTV) ratio.
Credit managers warn on Iran as defaults rise, spreads poised to widen
Despite market volatility from the conflict–added to tariff impacts–credit portfolio managers see liquidity as steady, with no significant signs of stress.
C&I loan growth is surging. Are private credit woes the driver?
The recent uptick in commercial-and-industrial lending is the result of disruption in the private credit sector, one economist argues. Bank analysts say the upheaval in private credit is one factor among many.
CFPB finalizes a scaled-back small-business lending rule
The Consumer Financial Protection Bureau finalized a new version of a small-business lending rule that took 17 years to get over the finish line. Banks are still lobbying for the rule to be repealed.
Lendmark Financial floats $300 million in ABS
The weighted average, base-case annualized gross loss declined from 11.78%, from 11.86%, because of minor changes in its assumptions of pool segment defaults.
GLS raises $1.1 billion from subprime auto notes
The three class A notes, A1, A2 and A3, of GCAR 2026-2 notes will all benefit from hard credit enhancement levels, plus haircut to excess spread of 56.07%.
Credit card issuer Mission Lane applies for bank charter
The credit startup is seeking a limited-purpose charter from federal regulators through the Competitive Equality in Banking Act's credit card bank carveout.
Ally’s auto credit improves, despite tough backdrop
Nationwide, Americans are falling behind on their car loans. But among Ally Financial's customers, delinquencies fell during the first quarter.
First Help’s pool of subprime auto loans backs $326.8 million ABS deal
Analysts expect the pool to be composed of receivables primarily from franchise dealers that offer indirect financing to consumers often overlooked by traditional financing sources such as banks.
Exclusive research Big AI spenders are reaping large productivity gains
American Banker data found that those who upped artificial intelligence spending by more than 25% in the last year saw major improvements in employee output.
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