Like a car on a bridge buffeted by strong winds, subprime auto lending will be challenged on several fronts as it approaches the other side of the pandemic. Turns out, the anticipated “new normal” may involve a new framework with subprime borrowers under severe financial pressure and regulators watching underwriting, servicing and collection practices. It’s difficult to know if a market change is...
Sometimes you have to get a “maybe” before you can get a “yes.” That’s apropos of the long path to acceptance of new methods in well-established markets with well-worn channels and dominant players. Auto finance has presented such a challenge, but, finally, Fintech has made inroads. Below, we look at how Fintech is disrupting auto financing and refinancing and transforming the market in multiple...
Joseph Cioffi and Nicole Serratore recently discussed the CFPB’s new debt collection rules relating to communications between debt collectors and consumers, which gives greater control to consumers and reduces legal exposure for complying collectors. With the threat of an economic downturn and delinquencies rising across markets, compliance will become increasingly important, especially in...
Joseph Cioffi was quoted in a MarketWatch article "Consumer Watchdog Fires Warning Shot to Lenders Over Abusive Auto Repos as Used-car Prices Soar".
On Thursday, January 27, Joseph Cioffi moderated a webinar titled “Subprime Auto: Reflections on 2021 and Expectations for 2022,” with a panel of industry professionals including Ines Beato, Senior Vice President, US ABS - Global Structured Finance at DBRS Morningstar, Sean Morgan, Senior Vice President of Finance at Westlake Financial Services and Clayton Triick, Senior Portfolio Manager, Angel...
The third year of the pandemic brings with it questions of when normalization might occur in subprime auto lending and securitization. All eyes are on supply shortages, which have kept used vehicle prices in the stratosphere, and inflation, which could cause consumers financial distress. With these issues in mind, in a recent article in Structured Credit Investor, we compared Credit Chronometer’s...
Joseph Cioffi and Nicole Serratore's article "Same as Ever?" was published in Structured Credit Investor. Click here to view the full article.
