Auto Finance

Auto lending is a dynamic market second only to housing in size, with nearly $900 billion in outstanding auto loan balances. Banks hold approximately a third of all auto loan balances, followed closely by captive auto lenders, credit unions and auto finance companies. Under the Dodd-Frank Act, the CFPB has the authority to supervise all depository institutions with more than $10 billion in assets. However, the Bureau has also been granted the authority to supervise “larger participants” in consumer financial markets. The CFPB exercised this authority by issuing a rulemaking proposal to extend its supervisory reach over nonbank auto lenders, such as the captives and auto finance companies. CBA is largely supportive of this effort as consumers should expect to receive the same level of protection no matter where they receive their auto loans.
  • December 3, 2015
    According to the company’s press release, Wirth, a more than 25-year auto finance veteran, main objective is to strengthen Huntington’s dealer outreach and product and service innovation. “Tom has earned tremendous respect across the industry and dealer community alike,” said Rich Porrello, Huntington auto finance director. “We are thrilled to have him on the team to help drive our continued...
  • November 20, 2015
    CFPB Releases Updates to Rulemaking Agenda On Friday, November 20, 2015, the CFPB released its semiannual rulemaking agenda as part of the federal government's Unified Agenda of Regulatory and Deregulatory Actions. Part of the CFPB's mandate from Congress is to make rules governing consumer finance markets more effective and to create new rules when warranted. The agenda includes rulemaking...
  • October 30, 2015
    CFPB Takes Aim at Employment Background Screening Report Providers On Thursday, October 29, 2015, the CFPB announced an enforcement action against two of the largest employment background screening report providers - General Information Services and its affiliate, e-Background-checks.com, Inc. In the consent order , the Bureau alleged the companies violated the Fair Credit Reporting Act by...
  • October 21, 2015
    WASHINGTON—A top financial regulator warned of risks in the fast-expanding auto-lending sector, raising the prospect of fresh regulatory pressure in an area that has been a bright spot for banks. While policy makers have generally declared the U.S. banking system recovered from the financial crisis, Comptroller of the Currency Thomas Curry raised a rare red flag, saying in a speech that some...
  • October 2, 2015
    Director Cordray Testifies Before House Financial Services Committee On Tuesday, September 29, 2015, CFPB Director Richard Cordray appeared before the House Financial Services Committee to offer the Semi-Annual Report of the Bureau of Consumer Financial Protection. In his testimony , he noted the recent growth in the mortgage market as well as in other consumer credit markets. He also touted the...
  • August 19, 2015
    Following a period of declining demand for consumer loans triggered by the 2007 mortgage-backed securities collapse, consumers are borrowing again. In 2014, total outstanding consumer loans grew five percent to $1.4 trillion led by auto loans, credit cards and home equity lines of credit.1 U.S. consumer credit rose at a seasonally adjusted annual rate of 5.6 percent through February 2015. This is...
  • July 17, 2015
    Antonakes to Leave CFPB On Thursday, July 16, 2015, American Banker reported CFPB Deputy Director Steven Antonakes will leave the agency to spend more time with his family in Massachusetts. Antonakes, who has been with the CFPB since 2010, has been commuting to Washington, D.C. weekly . While his actual departure date is unclear, he is expected to leave soon. Information about a successor to...
  • July 2, 2015
    Honoring our Men and Women of the Armed Services As we fire up the grills and reunite with family this weekend, remember to take a moment to reflect on the true meaning of this Independence Day and thank those who have so honorably served our nation. Thank you to all our banks who provide transition services to our veterans. Happy Fourth to all of you! Branch Buzz At last week's board meeting,...
  • July 1, 2015
    The Consumer Financial Protection Bureau remains frustrated that most auto dealers were carved out of the CFPB’s jurisdiction when Congress created the bureau in 2010. The issue came up multiple times in a recent meeting between CFPB Director Richard Cordray and a delegation from the Consumer Bankers Association, said Reagan Anderson, CBA senior vice president for congressional affairs. She...
  • June 30, 2015
    The Consumer Financial Protection Bureau says consumer “narratives” are the “heart and soul” of consumer complaints it receives, but to lenders on the receiving end, the narratives amount to “public shaming,” with no way to adequately respond. Over the objections of trade groups, the CFPB re-launched its consumer complaint database late last week with the addition of consumer narratives, altered...

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