Since retiring for the second time from Exeter Finance, Mark Floyd certainly doesn’t appear to be reducing his industry involvement much.
As analysts discussed how commercial banks are viewing auto financing, they also spotted the largest sequential drop in the auto segment of the S&P/Experian Consumer Credit Default Indices in five years.
So far this year, a wide array of investment analysts are asking finance companies that bring in any non-prime or subprime paper about their current risk appetite.
Credit Acceptance Corp. appears well aware of the risk the finance company is taking as installment contract dollar amounts as well as terms keep growing.
S&P Global Ratings recently considered what two specific areas contain the most risk since loosening underwriting resulted in U.S. auto loans and leases rising steadily over the past several years to reach all-time highs in 2016.
TransUnion’s Industry Insights Report offered clear evidence that auto finance originations are slowing, especially in the subprime space.
With delinquencies an ongoing concern, FICO said it has crafted a way to prioritize the account holders with the highest likelihood of paying.
FICO discussed the process in its latest white paper, delving into the topic by discussing five questions managers often consider, such as:
The auto finance component of the S&P/Experian Consumer Credit Default Indices showed contract defaults improved in March both on a year-over-year and sequential basis.
Hudson Cook associate Anastasia Caton observed last week’s oral arguments during a crucial debt collection case in front of the Supreme Court that might make third-party efforts within auto finance significantly more difficult depending which way the nine justices rule.
Consumer Portfolio Services chairman and chief executive officer Brad Bradley likes the position where the subprime auto finance company sits after the first quarter.
And it’s not just because CPS posted its 23rd consecutive quarter of positive earnings.