Monday, November 3, 2014
SEC Requests Subprime ABS Documents From Ally
Ally Financial Inc. recently received a document request from the U.S. Securities and Exchange Commission in connection with an investigation related to subprime automotive finance and related securitization activities, the company said in 10-Q filing today.
An Ally spokeswoman wouldn’t comment much beyond what was revealed in the filing. “Ally has been requested to provide data and records relating to our auto finance activities and will respond accordingly to the SEC,” Ally spokeswoman Gina Proia wrote in an email to Auto Finance News.
Since 2013, Ally Financial has issued $6.7 billion in asset-backed securities, according to data from Deutsche Bank Securities Inc.
All SEC investigations are conducted privately, according to the SEC website. Typically, the SEC’s Enforcement Division obtains evidence of possible violations of securities laws from sources including market surveillance activities, investor tips and complaints, other divisions and offices of the SEC, the self-regulatory organizations, and other securities industry sources and media reports.
This latest move by a regulatory agency comes on the heels of last week’s revelation by General Motors Financial Co. in a 10-Q that it had been served with “additional investigative subpoenas to produce documents from state attorneys general and other governmental offices relating to our subprime auto finance business and securitization of subprime auto loans.”
Thursday, October 2, 2014
Wednesday, September 24, 2014
Friday, September 12, 2014
Fico To Release New Scoring Model
September 6, 2014
Fair Isaac Corp.has announced the newest update to its Fico scoring model, Fico 9, which is slated for release to lenders later this year. The new model gives less weight to medical debt and debts that previously went to collections but have since been paid. This will give lenders a better assessment of consumer risk when extending auto loans, said Anthony Sprauve, a Fico senior consumer credit specialist. “Previously, all collections were lumped together, so we didn’t have the ability to analyze medical debt separately than other types of debt,” Sprauve told Auto Finance News. “Now that we can do that, we are able to take a look and see if that is the only negative, and if it is an indication of someone being in trouble.” With the new scoring model, a consumer with a good credit history whose only negative is medical debt collection may see about a 25-point bump in score. “So, certainly, it could push them from one tier of a loan to another,” he said. Fico 9, the company’s first update since 2008, is currently being evaluated by the credit bureaus.
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