Auto lending

Improved underwriting allowed the lender to secure AAA ratings despite offering the lowest credit enhancement on senior SDART notes in three years.

The lender's first deal of the year is sized at $750 million, in line with its two prior offerings, but the amount of collateral has been significantly increased, to over $1 billion.

The agreement marks the latest example of the banking giant teaming with a fintech to speed up delivery of services to its customers.

Rather than jump right away into lending to car buyers, Access National will start by offering CRE and M&A financing to dealerships.

The Consumer Financial Protection Bureau’s 2013 guidance putting indirect auto lenders on the hook for unintentional discrimination by their partner dealers should have been subject to congressional review, the Government Accountability Office said Tuesday.

Kroll expects cumulative net losses on the collateral for American Credit Acceptance 2017-4 to be as high as 29.9%; the senior notes have 66.35% initial credit enhancement.

Citing the dim financial outlook for a business it entered just six years ago, the Wayzata, Minn., company will stop making auto loans on Dec. 1.

More stringent underwriting is the likely reason banks and credit unions are seeing relatively low levels of delinquencies on car loans to high-risk borrowers.

The Consumer Financial Protection Bureau said 42% of car loans issued in the last year had a repayment term of six years or more, a huge leap over the 26% with such terms in 2009.

The Dallas consumer lender says it plans to boost subprime originations again after retooling its portfolio and taking stock of the economy.