Mortgage distress up 90% this year, counseling provider finds
The withdrawal of pandemic housing relief and high home prices have heightened consumer strain, according to nonprofit Money Management International.
Consumer lending
Westlake Automobile Receivables prepares to sell $1.2 billion in auto ABS
In one of the deal's positive credit attributes, none of the underlying loans in the collateral have terms longer than 72 months. Such longer-term loans have historically performed worse than shorter-term loans.
Used-car dealer halts plans for subprime auto loan offering
As interest rates rise and delinquencies among borrowers with poor credit scores soar, investors are increasingly scrutinizing the riskiest slices of asset-backed securities sold by some subprime auto lenders. That's forced certain issuers to postpone deals or sweeten terms.
Navient says losses in CFPB case could be as high as $250 million
The student loan servicer said that it's open to settling a high-stakes lawsuit filed by the Consumer Financial Protection Bureau during the Obama administration. It recorded a $45 million charge and said that the range of reasonably possible losses is between $0 and $250 million.
Investors warm to consumer ABS despite cyclical challenges
Esoteric transactions' premiums and longer durations are especially attractive, as other consumer assets are put to the test.
By
John Hintze
Upstart Securitization Trust aims to sell $263.1 million in ABS
Both tranches have the same legal final maturity of Oct. 20, 2033, an initial (OC) of 26.00%, and an initial reserve of 0.50%.
ACHV ABS prepares to sell $157.5 million in ABS to investors
The deal has the smallest pool balance from the ACHV program this year, with an aggregate current principal balance of $177.8 million. The collateral pool contains 14,141 loans, with an average current loan size of $12,577.
Auto lender Ally points to signs that credit erosion will stay in check
Charge-offs at the Detroit-based lender rose last quarter, as borrowers had a tougher time keeping up with their car payments. But so far, credit quality is staying within expectations, and company executives don't anticipate that the rest of the year will be much worse.
How the end of the student-loan pause could hurt deposit levels
Following the end of a long moratorium for federal student loan borrowers, monthly payments are expected to total $18 billion. Much of that money will come from checking and savings accounts, which will put more pressure on banks' deposit bases.
Mariner Finance prepares to sell $300 million in consumer loan ABS
The notes have the same final scheduled repayment date of Oct. 22, 2035, an initial credit enhancement that ranges from 43.85% on the class A notes to 13.15% on the class E notes.
CRB Securitization Trust aims to sell $201 million in consumer loan ABS
Notes will repay investors on a sequential basis, S&P said. One of S&P's rationales for assigning its ratings is the available credit support, including excess spread of 49.0%, 44.7%, 37.3% and 31.5% on classes A, B, C and D notes.
Pagaya Technologies raises $600 million in secured consumer loans
The deal is the eleventh this year for Pagaya AI Debt Selection Trust, and is slated to close by September 29.
U.S. new-home sales fall to five-month low amid elevated rates
Purchases of new single-family homes fell 8.7% to a 675,000 annualized pace following an upward revision to July's figures, government data showed Tuesday, marking the largest drop in nearly a year.
Affirm Asset Securitization raises $750 million in notes
Backed by revenue from point-of-sale unsecured consumer loans, the upsized deal also features expandable notes.
Lender Westlake is using AI to make more auto loans
Pagaya's artificial-intelligence model utilizes more data points in assessing whether a consumer is creditworthy than the handful typically used by traditional auto lenders, so it can find more consumers who would have previously been denied a loan.
Regulators pledge support for institutions in Hawaii’s wildfire zone
Banking and credit union regulators encouraged compassionate treatment of customers in Hawaii communities hit by wildfires. They also vowed to grant expedited approvals of temporary banking facilities, be flexible in compliance matters and provide other support to financial institutions.
OneMain prepares to issue $750 million in ABS from consumer loans
The current pool does contain personal loan renewals, and they remain in the pool as eligible collateral during a three-year revolving period.
Banks, usually hungry for growth, are now looking to shrink
Much of the industry is slimming down, with some banks calling it quits on riskier sectors and selling loans they no longer want. The trend is particularly prominent at regional banks that are preparing to comply with new capital rules.
SoFi ‘glad to be back’ in student loan refi as moratorium nears end
The San Francisco company's student loan business suffered from the moratorium on federal borrowers' loans. But executives see a rebound ahead despite high interest rates dampening appetite for refinancing.
Jump in short-term delinquencies is the largest in at least a year
But mortgage numbers remain historically very low and fall short of pre-pandemic levels, according to VantageScore's latest monthly report.
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