Auto Finance Industry News
June 8, 2017

First Associates Loan Servicing Achieves Industry's Highest Level of Security for Cardholder Data

First Associates Loan Servicing announced today that they received certification of Payment Card Industry (PCI) Data Security Standard 3.2 SAQ D compliance. This comes on top of two other recent big wins for the company; a Morningstar MOR RV1 ranking of 'stable' which is the highest certification to assess operational risk and overall excellence in loan servicing; and winning the LendIt 2017 Top Service Provider award.
Top Stories

A new study by Wells Fargo shows that fewer sub-prime borrowers are paying off their auto loans early. Why is this important? Often, sub-prime borrowers have more cash or income than credit rating and so they tend to like to pay down their high-interest loans faster. But this trend has been declining.


The share of new-vehicle loans lasting 73 to 84 months has risen sharply in the past eight years, according to Experian. In the first quarter of 2009, 11.7 percent of new-vehicle loans were 73 to 84 months, Karl Kruppa, senior automotive solutions consultant for Experian, said at CU Direct's Drive '17 conference here last week. Through February 2017, 33.8 percent of loans were 73 to 84 months.


Lenders and finance companies have dramatically pulled back the number of loans they issue to borrowers with the poorest credit records. A new report by Experian shows the number of loans written in the first quarter for borrowers with subprime and deep subprime credit ratings fell to a 10-year low. Collectively, auto-loan originations in those two categories dropped 8.6 percent in the first quarter .


U.S. auto sales fell for the fifth straight month in May, bolstering expectations for the first annual sales decline since 2009. Some industry analysts lowered predictions for the year as General Motors, Fiat Chrysler, Hyundai and Toyota all reported May decreases compared with a year ago. Ford, Honda, Nissan and Volkswagen said their sales were up. The figures added up to just over 1.5 million vehicles sold and a 0.5 percent decrease.

Events
June 12 - June 14
The Ritz Carlton
Dana Point, CA

Save 20% with promo code First20SCI2017
June 22
Offices of Arnold Porter & Kaye Scholer
New York, NY 

September 17-19
Fontainebleau Hotel
Miami Beach, FL

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October 11-13
Fairmont Dallas
Dallas, TX