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Weekly Wrap: The tail end of Q2 earnings

This week, second-quarter earnings wrapped up on a positive note with presentations from GM Financial, Santander Consumer USA and Harley-Davidson. An Auto Finance News analysis also found that Carvana took the top spot in auto finance ad spending during the coronavirus-dominated quarter.

Weekly Wrap: subprime performance and captives’ market share

This week, the Auto Finance News team took a deep dive into how the pandemic is affecting subprime lenders. Auto, however, may shine bright in the coming months. Capital One saw an increase in auto originations that helped boost the bank’s overall second-quarter performance, and captives gained 8 points in market share as a result of 0% APR incentive programs. However, the bank, in line with industry trends, still upped its loan loss reserves in preparation for further economic fallout brought on by the pandemic.

Weekly Wrap: second-quarter earnings season kicks off

This week Bank of America, Chase Auto, PNC Financial, U.S. Bank and Wells Fargo Auto all reported increases in allowances for credit losses despite a dip in delinquencies and charge-off rates, a trend the banks are largely attributing to robust deferral programs aimed to slow the economic damage wrought by COVID-19. In fact, many auto lenders have now transitioned to case-by-case deferral programs to help consumers with payments. Still, there is concern that the repossession industry may not be equipped to handle an expected increase in attempted recoveries due to the coronavirus pandemic.

Fintech, CFPB complaints and vehicle values: a closer look

This week, Auto Finance News took a deep dive into the driving factors behind the goals of two fintech lenders entering the auto finance space on the heels of pandemic-driven growth. We also looked at the Manheim used-vehicle value index, which soared to record highs in June, and explored how consumer complaints with the Consumer Financial Protection Bureau last month reflected coronavirus-related hardships.

Is innovation becoming a revitalized focus in auto finance?

This week was ripe with news on the innovation front, as Ford Credit outlined the details of its new financing product, the Ford Option, and Upgrade, a personal loan fintech, has plans to enter the auto finance market this year with its sights set on $1 billion in new loan originations. Meanwhile, loan performance in dealer floorplan asset-backed securities is showing signs of improvement on the heels of rising vehicle sales.

Weekly Wrap: Pandemic car buying, mid-June gains, and rising fraud

This week, the Auto Finance News team took a hard look at what the car buying and financing experience was like for consumers and dealers at the height of the pandemic, explored recovering used-vehicle values, and as well as the rise of fraud amid a decline in loan applications.

Weekly Wrap: Eyes on delinquencies, incentives and a new IPO

his week, all eyes were on first-quarter delinquency rates, incentives, and Vroom's IPO.

Weekly Wrap: May sales figures hint at promising gains for the auto industry

This week, OEMs’ monthly sales figured pointed toward promising signs of recovery in the new-vehicle market, with American Honda, Mazda and Hyundai all reporting improvements on a month-over-month basis, although sales are still tracking well behind 2019’s count.

Weekly Wrap: COVID-19 pressures used market, ABS deals

This week, the potential bankruptcy news of rental car conglomerate Hertz shook the industry as the liquidation of its fleet, combined with an influx of off-lease vehicles, could flood the used-vehicle market.

Weekly Wrap: GDP contraction signals recession, lenders stock up on cash

This week, news of a 4.8% contraction in the nation’s gross domestic product in the first quarter signaled a recession brought on by the economic fallout of COVID-19, and auto lenders are stocking up on cash. In this editors’ roundtable, Nicole Casperson, Joey Pizzolato and JJ Hornblass discuss news developments during the week ending May 1.

Weekly Wrap: Banks stock up on capital, vehicle values plummet

In the second week of first-quarter earnings season, Ally Financial reported the addition of $2.8 billion to its retail auto reserves, joining last week’s reporters, including Bank of America, JP Morgan Chase and Wells Fargo in setting aside additional credit losses.

Weekly Wrap: Earnings season kicks off, COVID-19 spurs increased reserves

First-quarter earnings season kicked off with JPMorgan Chase, Wells Fargo, Bank of America and Consumer Portfolio Services reporting increased loss reserves as the COVID-19 economic crisis continues to rattle the industry.

Regulatory risks in providing coronavirus-based payment deferrals

The coronavirus outbreak has resulted in an economic recession spurred by shelter-in-place orders that have shuttered doors for nonessential businesses, including most car dealerships. During a compliance roundtable with Auto Finance News, industry experts Mark Edelman and Kelly Lipinski from McGlinchey address the key issues auto lenders are facing today. Virtually every major auto financier has now implemented some sort of payment relief program that allows consumers to defer payments with or without interest. However, no good deed goes unpunished, and there are many compliance considerations that lenders will have to keep on their radar. From eligibility and proof, to F&I products and servicing implications, in this discussion Edelman and Lipinski detail actionable advice for lenders to mitigate regulatory risks with deferral programs.

Filling the gap in servicing, collections with data-driven technology

During the past ten years, lenders have focused on improving data-driven technology on the origination side, yet that same technology hasn’t been as actively applied to the servicing and collections side of the auto finance business. In this episode of “The Roadmap,” Simon Scalzo, founder of Remitter, sat down with Auto Finance News to discuss how consumer data is collected, strategies for communicating with customers and compliance considerations when implementing new tech.

Measuring and mitigating fraud risk

As auto lenders look to technology to scale and grow their businesses, the susceptibility to fraud grows. Technology can help lenders catch fraud, and detection can be achieved at a greater scale with the help of digital tools. In this episode of “The Roadmap,” Auto Finance News chats with General Forensics' Josh Wortman about fraud trends he’s seeing in auto finance, best practices to mitigate criminal exposure, and the intersection between technology and fraud. Featuring: Josh Wortman, chief executive data scientist at General Forensics

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