US Subprime Auto Losses Reach Financial Crisis Levels



POSTED BY Ed (8 mths ago)
U.S. subprime auto lenders are losing money on car loans at the highest rate since the aftermath of the 2008 financial crisis as more borrowers fall behind on payments, according to S&P Global Ratings.

Losses for the loans, annualized, were 9.1 percent in January from 8.5 percent in December and 7.9 percent in the first month of last year, S&P data released on Thursday show, based on car loans bundled into bonds. The rate is the worst since January 2010 and is largely driven by worsening recoveries after borrowers default, S&P said.


Ed (8 mths ago)
And what do the regulators do about this?

Yep - the make it even EASIER for people with really bad credit ratings --- to borrow....

New FICO criteria could help borrowers

The changes to FICO criteria are aimed at reducing the negative effect of overdue medical bills and at removing the penalties to consumers who pay off debts that had been assigned to collection agencies.

Ed (8 mths ago)

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