Consumer ABS

The slow down in consumer spending seen recently can mean that credit card balances remain flat for the foreseeable future, according to Bank of America Merrill Lynch analysts.

Auto ABS are revving up this week as a number of companies in the sector are planning to sell their securitizations including Ford Motor Co., Ally Financial, DriveTime, Honda Motor Co. and Harley Davidson Credit Corp.

Two student loan ABS transactions are currently in the market with a deal from the Iowa Student Loan Liquidity Corp., which is issuing its Series 2012-1 offering.

Harley Davidson Credit Corp. is planning to sell a $519 million securitization under its Harley-Davidson Motorcycle Trust 2012-1. The transaction is collateralized by motorcycle contract backed notes.

In a Bank of America Merrill Lynch conference call held yesterday, Theresa O’Neill, an asset-backed strategist from the firm, said that participants in the consumer ABS market need to keep a careful eye on certain regulatory developments related to securitization, namely the bank capital rules, risk retention, as well as any new rules from the Consumer Financial Protection Bureau (CFPB).

In a conference call yesterday, John McElravey, head of consumer ABS research at Wells Fargo, said that the U.S. auto ABS sector is now the “new benchmark for the consumer ABS market” replacing the credit card sector.

Information provider CoreLogic and FICO have together launched a consumer credit risk score that is expected to improve the quality of lending decisions and increase the number of mortgage loans lenders make.

WASHINGTON — In its first year of operation, the Consumer Financial Protection Bureau (CFPB) has already proved to be one of the busiest regulators in Washington.

The Consumer Financial Protection Bureau (CFPB) Monday afternoon released its Loan Estimator form, which will eventually replace the good faith-estimate disclosure that borrowers receive three days after applying for a mortgage.