Consumer ABS

GrandSouth Bancorp's issues with floor-plan loans to car dealers serve as a reminder of another pitfall in auto lending besides consumer loans.

The investment bank, which co-lead the lender's previous two transactions, contributed a portion of the collateral for the $232 million student loan securitization.

The broad bill, sponsored by House Financial Services Committee Chairman Jeb Hensarling, R-Tex., would provide an “off-ramp” for banks that agree to hold a leverage ratio of at least 10% and would gut the Consumer Financial Protection Bureau, among other provisions.

Appeals court justices appeared divided on whether the structure of the Consumer Financial Protection Bureau is constitutional during oral arguments in the PHH v. CFPB case on Wednesday.

BXG Receivables Note Trust 2017-A is a $120.19 million securitization of vacation interval loans originated by timeshare developer Bluegreen Corp. and sister company Bluegreen Properties N.V. The transaction is the first of the year for Bluegreen.

Subprime lenders are adding $1.74 billion to the auto-loan ABS market this week in a trio of deals marking the second issuance of the year for each.

Hyundai Capital America is marketing its second auto-lease securitization of new Hyundai and Kia vehicles this year, totaling $1.12 billion in bonds. This is the 12th overall lease transaction for Hyundai Capital.

Ford Motor Credit and Mercedes-Benz Financial Services USA launched a pair of dealer floorplan securitizations totaling $1.9 billion Thursday.

SoFi Lending Corp. is marketing its third securitization of the year of loans refinancing the student debt of high earning professionals, as it continues to accelerate the pace of lending.

Volkswagen Finance S.A., E.F.C. is selling €750 million in bonds in its fourth public securitization of auto loans extended to borrowers purchasing VW Group vehicle models in Spain. Only 2.2% of the pool is impacted by the lingering fallout from the 2015 emissions scandal, according to Moody's.