Cascade pursues massive $3.1 billion inaugural auto-loan ABS
The deal’s sponsor has issued a small rated portion to investors and sold the remainder back to loan-originator.
Consumer lending
Driveway Finance showcases first ABS deal
The sponsor’s Fortune 500 parent provides comfort in the face of the subprime-auto industry’s woes.
DOJ vows more redlining cases after Trustmark settlement
Trustmark Bank agreed to pay $9 million to resolve allegations that it discriminated against Black and Hispanic residents in Memphis, Tennessee. Attorney General Merrick Garland said the Department of Justice and other agencies will continue their crackdown.
As refis dry up, mortgage firms vow to lend more to minority borrowers
The industry is prioritizing Black and Hispanic consumers in the interest of social equity and to tap new markets amid declining refinance volume and rising rates.
Industry scrambles to prepare for CFPB debt collection rules
Banks, credit card issuers and debt collectors all supported the Consumer Financial Protection Bureau’s revised regulations. But they face a steep learning curve in complying with the rules, which take effect Nov. 30.
Consumer loans back the planned $400 LendingPoint 2021-B ABS transaction
To help determine certain forms of credit enhancement and loss triggers, LendingPoint 2021-B is tightening its definition of what a charged-off account is.
‘Freedom’ consumer lending entities offer $230 million in ABS
The trust excludes loans from about six states with active legislation addressing the exporting of usury rates to out-of-state borrowers.
Missouri higher education agency to float about $197.5 million in ABS
Known as MOHELA 2021-3, the trust will issue a mix of fixed- and floating-rate notes from a capital structure with three tranches, or note classes.
What’s driving the boom in auto refinancing
Subprime borrowers whose credit scores have risen since they bought their cars are increasingly looking for a better deal. Credit unions and small banks are seizing the opportunity, often with the help of fintechs.
Santander paying $2.5B to acquire remaining stake in auto lender
The price for the 20% stake in Santander Consumer USA Holdings that Santander does not already own is significantly higher than what the buyer first offered in July.
Liberty Lending plans a $197 million ABS on unsecured consumer loans
Credit performance to LL ABS deals has been better than expected, as financial support to borrowers made exxtra cash available to pay down on other obligations.
Hotel, retail mortgage delinquencies down in July, but concerns remain
Late payments on office loans have trended upward recently, but longer lease periods may mitigate the potential for distress in that sector, the Mortgage Bankers Association said.
CFPB shelves plan to extend debt collection compliance deadline
The bureau said two rules related to communications with debtors will go into effect as originally planned on Nov. 30. The agency had previously proposed an extension to consider consumer advocates' concerns about the regulations.
Delinquency rate falls to pre-Great Recession average: Black Knight
The relatively low share of borrowers who were distressed in June adds to signs that the offramp from government relief measures may not lead to an overwhelming wave of foreclosures.
Ally leads pack of banks benefiting from hot auto market
The Detroit company, one of the nation's largest car lenders, enjoyed a surge in profits during the second quarter, largely due to strong consumer demand for vehicles. But how long will the good times last?
Hotel lending improves as pandemic eases, but risks remain
Consumers are booking rooms at levels not seen since early 2020 and loan delinquencies have fallen sharply as a result. Still, business travel remains sluggish and new COVID variants are spreading, threatening the hotel industry’s recovery.
Can banks allay concerns about emerging student loan product?
Income share agreements, which allow college graduates to repay tuition financing as a percentage of their future income, have come under fire lately from consumer advocates for questionable marketing and other potential legal violations. Some hope a partnership between a Virginia bank and an ISA provider will give the product more legitimacy, while others worry it just masks risks for borrowers.
Santander offers to buy remaining 20% of subprime auto lending arm
The Spanish bank’s U.S. holding company said it will pay a premium to purchase the publicly traded shares in Santander Consumer Holdings. The proposal is subject to the approval of the auto lender’s board of directors.
Where consumers got pandemic relief, complaints to CFPB fell
The number of grievances about evictions and federal student loans declined between January 2020 and May 2021. Nonetheless, the Consumer Financial Protection Bureau warned financial firms that poor customer service can undermine government efforts to provide aid.
Biden signs repeal of OCC’s ‘true lender’ rule
A congressional resolution that invalidates the regulation issued last fall by the Office of the Comptroller of the Currency would help regulators crack down on so-called rent-a-bank schemes that promote predatory lending, the president said before signing the measure.
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