Santander Consumer USA and CarFinance plan to issue a total of $1.3 billion of securities backed by subprime auto loans as both issuers deal with an ongoing investigation led by the U.S. Department of Justice and other regulators into their lending and securitization practices.

Santander leads issuance with a planned $1 billion securitization of subprime auto loans. Santander was one of the first subprime auto lenders targeted by the DOJ’s investigation into subprime lending and securitization. The issuer was subpoenaed blast August to submit information on the underwriting criteria for these loans, as well as the representations and warranties relating to the securitization of the loans.

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