KBRA says the Southern subprime used-vehicle retailer’s experience brings credibility to the space

Different loan options to traditional mortgages can be costlier, lack consumer protections and leave debtors at risk of ownership disputes and loss of home equity.

The drop in CLO issuance from Q1 volume raised no alarms, coming off last year’s record $187 million issuance, and experts see strong production for 2022.

Servicing gains failed to offset steep origination declines at the bank, which continues to battle allegations of racial discrimination.

Gross charge-offs on the underlying card accounts were 2.48%, through the twelve-month (TTM) period, a notable drop from 4.43% in the same period a year earlier.

While both refinance and purchase customers were banging down the doors in 2021, leading producers are already working much harder as they change up their offerings.

The loans in the pool, all of which are fixed-rate and first lien, have an average balance of $426,504, and the top five loan balances account for 3.4% of the pool.

CEO Jamie Dimon cited elevated risks related to inflation and the war in Ukraine as the nation’s largest bank added $902 million in loan-loss reserves. “Does this represent conservatism in an uncertain macro environment or something more onerous?” one analyst asked.

The gain on sale from first quarter originations increased as the bank shifted more volume share to the higher-margin channel.

Proceeds from the deal will purchase the loan assets and fund the reserve account.

Almost all of the underlying loans had been pooled in Ginnie Mae MBS deals, but the loans had been repurchased after they became seriously delinquent.

Lendbuzz closed a new $100 million committed warehouse facility, with a 12-month revolving period, and will bring its total warehouse capacity to $400 million.