Calif. fines Santander Consumer for referral-fee violations
The subprime auto lender failed to disclose that it received fees for referring borrowers to CarMax, the used-car dealer, according to California's financial regulator.
Consumer lending
GM Financial, Santander continue ABS credit-quality improvement
But GMF's deeper dive into long-term loans for a pool increasingly dominated by pricier trucks and SUVs caused a slight bump in expected ABS credit losses.
By
Glen Fest
Mulvaney thwarts Warren inquiry, citing CFPB structure
The agency’s acting director uses a reply letter to the senator not to answer her questions but to underscore that Congress lacks the ability to compel answers to such questions.
Growing losses push Hyundai’s focus toward higher FICOs in $924M loan ABS
The weighted average FICO of 750 is the highest of any post-recession securitization from Hyundai Capital Americal, the joint captive-finance lender for U.S. Hyundai and Kia dealers.
By
Glen Fest
Lender plans debut bond issuance backed by student-loan refis
Southeast Bank's Education Loan Finance division joins SoFi, Navient and Laurel Road in originating and securitizing the refinanced student loans of advanced-degree professionals.
By
Glen Fest
It ‘would stab a knife’ into CFPB: Critics react to Mulvaney proposal
The latest salvo by the acting director of the Consumer Financial Protection Bureau — proposing in the agency's semiannual report that all CFPB rules be subject to congressional approval — left many observers stumped if not outraged.
CFPB’s Mulvaney looks to rein in ‘tyranny’ of agency he runs
Acting Consumer Financial Protection Bureau Director Mick Mulvaney proposed dramatic curbs to his agency's power in a report Monday, including a recommendation that all CFPB rules must be approved by Congress.
Laurel Road finds a novel solution to a uniquely bank problem
Explosive growth in student lending was putting pressure on the capital ratios of the company, formerly Darien Rowayton Bank; a securitization got a big chunk of servicing strips off its books.
Online lender Upstart is said to seek $100 million from investors
Even as many venture capitalists retreat from the online lending industry, Upstart Network is hoping to find investors still willing to bet on the business.
Prosper’s earnings suffer from cost of deal that bolstered funding
The San Francisco-based online lender reported a net loss of $115 million for 2017, more than half of which was connected to warrants issued in a deal that stabilized the struggling firm.
Podcast College students pay for spring break with student loans
Are American college students using their student loan dollars wisely? A LendEDU study explored how those funds are spent.
Two banks take equity stakes in online student lender CommonBond
Fifth Third and First Republic are among the investors in the company’s $50 million equity round.
New Florida law will loosen small-dollar lending rules
The legislation, signed Monday by Gov. Rick Scott, authorizes 60- to 90-day loans of up to $1,000. It makes Florida the first state to pass a law designed to blunt the impact of the CFPB’s payday lending rule.
SoFi prices 1st student loan ABS with medical residency refis
Medical residents are considered to be good credits but have less free cash flow than fully practicing doctors; the loans did not have a big impact on overall credit metrics of the $900 million deal.
CFPB’s Mulvaney shows lighter touch with tribal lenders
Under Richard Cordray, the consumer bureau had questioned whether affiliations between small-dollar lenders and sovereign tribes are exempt from state laws, but observers say the agency’s acting chief has signaled a more welcoming approach.
CommonBond takes AAA credit rating straight to the bank
The fintech lender's latest offering of $234 million bonds were priced at a 27-basis-point improvement from its previous deal; cheaper funding will allow it to better compete for borrowers in a rising rate environment.
DeVos ups ante with state AGs in battle over student loan servicing
Department of Education Secretary Betsy DeVos says the companies hired by the government to service its own loans should only be subject to federal oversight.
Florida poised to enact workaround to CFPB payday rule
The legislature has passed a bill that would allow lenders to make installment loans that, in many cases, would be more costly than payment loans. If Gov. Rick Scott signs it, Florida would become the first state to pass a law designed to blunt the impact of the CFPB’s crackdown on high-cost consumer loans.
Ally boosts credit enhancement on next CARAT auto ABS
The performance of outstanding transactions issued via the Capital Auto Receivables Trust platform is weakening, so rating agencies are demanding additional investor protections.
By
Glen Fest
Foursight pays up (a lot) for AAA on its latest subprime auto ABS
Credit enhancement on the senior notes has risen to 36.25% from 28.7% to account for higher expected losses on the collateral; Kroll's base-case range is for 6.75% to 8.75% over the life of the deal.
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