Pagaya returns with $487.5 million in notes backed by unsecured consumer loans
Initial hard credit enhancement for the class A notes is lower, at 37.30%, because of lower subordination in the deal.
Consumer lending
LendingPoint’s latest consumer loan ABS to raise almost $171 million
For this securitization the 85.7% portion of standard amortizing loans does include a sliver of (SAC) loans, or 4.7%, that are past their promotional periods and 14.3%, that are within.
A bumpy road ahead for credit union auto lending
Car loans are among the bread-and-butter products for credit unions, but slowing demand and growing delinquencies are putting some pressure on the category.
Online marketplace loans support $304 million from Marlette Funding Trust
Expected lifetime cumulative net loss is 9.25%, while higher note coupons, only partially offset by higher collateral interest rates, cut excess spread to 5.44%.
Mortgage delinquencies rise as economy stumbles
The 51 basis point increase was inevitable after the late payment rate reached a record low in the third quarter, the Mortgage Bankers Association said.
Upstart reports progress on fixing funding problems
A pullback by the buyers of Upstart's consumer loans led to a "challenging year," CEO Dave Girouard told analysts. But he added that the company is in "late-stage discussions" with partners that are looking to make longer-term commitments.
Pagaya AI Debt Trust prepares to issue $500 million
PAID 2023-1 will secure the underlying assets through a three-month pre-funding period, half of the six-month period that was in place for 2022-5.
Sallie Mae overhauls its credit analytics after charge-offs jump
After soured loans rose above the private student lender's expectations in 2022, its stock price fell 16% on Thursday. One analyst wrote that "persistent credit issues have damaged management's credibility."
Upstart Holdings pushes past shakeups to sponsor $192.7 million ABS deal
Upstart Holdings implemented underwriting and pricing changes in response to higher delinquency and CNL rates on securitizations issued since Q1 2021.
Goldman to exit personal loans as Marcus reshuffle continues
Goldman Sachs provided more details on its pullback from its once-grand ambitions to expand into consumer finance. Though parts of that strategy will remain, the New York bank will halt its personal loan business and postpone offering a checking account for its wealth management customers.
Early-stage defaults push national delinquency rate above 3%
Foreclosure starts also increased by over 19% between October and November but remain below pre-pandemic levels.
CFPB seeks to limit banks’ ability to collect on delinquent HELOCs
In an appeals court filing, the Consumer Financial Protection Bureau wrote that a federal judge "ignored regulatory text, history and context" when she ruled against a PNC customer. The consumer argues that the bank shouldn't have pulled funds from his checking account after he was tardy in making payments on his home equity line of credit.
Wells Fargo launches small-dollar loan as an alternative to overdrafts
The San Francisco bank joined Bank of America, U.S. Bancorp and Huntington Bancshares, which have previously introduced similar products. The Pew Charitable Trusts said the loans are a more affordable option for cash-strapped consumers than payday loans and overdraft fees.
Arizona voters approve new limits on consumer debt collection
A ballot initiative that places additional restrictions on debt collectors and decreases the interest rates that can be charged on medical debt passed Tuesday by an overwhelming margin. Consumer advocates say it will ease the burden on households dealing with hardship, but industry groups contend that it will make credit more expensive.
CFPB signals imminent crackdown on ‘junk data’ in credit reports
Credit bureaus should know better than to include "impossible" data, such as someone defaulting on a loan before they were born, says Consumer Financial Protection Bureau Director Rohit Chopra.
North Carolina case has big implications for debt buyers
The state Supreme Court heard oral arguments in a lawsuit involving one of the nation's largest debt buyers. At issue is how much detail the industry must disclose about what consumers allegedly owe.
Overall delinquencies drop despite uptick in short-term distress
Recent reports highlight the question of how much wage growth can do to sustain loan performance as pandemic relief gets rolled back, consumer costs rise and the housing market cools.
Late payments rise among low-income auto, card borrowers: Report
Even though delinquency rates were previously at extremely low levels, the recent uptick among poorer consumers is worth monitoring, New York Fed researchers said.
CFPB urges student loan servicers to help military personnel get debt relief
The Consumer Financial Protection Bureau said “time is running out” for military student loan borrowers to obtain debt relief under the Public Service Loan Forgiveness program.
Capital One pulls back on auto loans over competitors’ ‘aggressive’ prices
The McLean, Virginia, company is starting to “trim around the edges” of its auto portfolio, CEO Richard Fairbank said. That move stands in contrast with Capital One's leaning into its credit card business, which helped push marketing spending above $1 billion.
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