A decade ago we set out to re-imagine the banking industry. We started by making credit more attractive for borrowers and investing more rewarding for investors. As we grew we transformed the banking system into a frictionless, transparent and effective online marketplace that helps people achieve their financial goals. On our 10-year anniversary, we sat with our CEO to discuss the future of credit and online lending.
A recent release from the NY Fed showed that consumer debt levels have now surpassed the peak levels from 2008 and raised concerns of another unsustainable debt bubble. The debt debate takes on increased significance given the surprising and dramatic pull back in consumer spending in the first quarter when personal consumption came in at only 0.6%, the weakest level since 2009, which some have blamed on an over-leveraged consumer.
Over a relatively short period of time, technology has significantly altered the lending landscape for both consumers and business owners. Bank loan applications can be completed online or via mobile phone, approvals (or rejections) arrive in mere hours versus days or even weeks, and for the institutions, new uses for and new types of data are allowing digital lenders to re-imagine the underwriting process to deliver both efficiencies and added insights.
The share of auto loans rated subprime hit a first-quarter 10-year low and the average credit score rose as lenders adjusted their financing criteria, according to Experian's first-quarter State of the Automotive Finance Market report. The total share of subprime and deep subprime loans fell to 24.1 percent in the first quarter, compared with 26.5 percent a year earlier.
First Associates' best-in-class primary loan servicing will help your business excel. From A-to-Z and back again, we cultivate positive and respectful borrower relationships, focus on service and maximize capabilities with cutting-edge technology. We offer loan and lease servicing across a wide variety of asset classes and employ a team of highly-trained, professional Loan Advisors.
With First Associates, you get a trusted partner with 30+ years of experience, the only company in its class to have earned a Morningstar MOR RV1 ranking for overall excellence and an unparalleled level of compliance as evidenced by our zero-discrepancy SSAE-16 audit.
First Associates offers in-depth industry expertise, cutting-edge technology and a comprehensive array of services across a variety of asset classes. We are the fastest growing third party servicer of loan and lease portfolios in the United States and are expanding our reach and services across the globe.
Our model is build with your success in mind and we deliver flexible, scalable and innovative solutions to meet the demands of any client. Learn more.