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Posts Tagged ‘subprime lending’

Feds Subpoena Records from GM Finance Unit

Investigators focus on GM Financial’s subprime loans.

by on Aug.05, 2014

GM's financing arm, GM Financial, was subpoenaed by the Justice Department last month.

GM Financial’s subprime auto loans are the target of a subpoena from the U.S. Justice Department served last month. The documents requested go as far back as 2007, the company reported in a Securities and Exchange Commission filing.

Federal investigators served General Motors financial arm on July 27 with a subpoena seeking documents involving origination and securitization.

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Company executives have confirmed the request, but quickly point out that no allegations or charges have been filed. (more…)

Auto Sales Jumping as Banks Loosen Credit Reins

Despite rise in subprime lending, defaults at near-record lows.

by on Jul.31, 2014

Banks have loosened the credit lines and as a result auto sales are booming in 2014.

It’s becoming clear that one of the primary reasons that new car sales are booming this year is that Americans are able to more easily get credit to finance their purchases. The total amount of outstanding auto loans has increased by 10% in 2014.

According to Equifax and its National Consumer Credit Trends Report, there is $902.2 billion in outstanding auto loans, which is a new record.

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“Auto lending continues to thrive, accounting for more than 50% of all new non-mortgage lending through April of 2014,” said Dennis Carlson, Deputy Chief Economist at Equifax. (more…)