Jon Lamb’s Post

Navigating subprime lending can be challenging, but it becomes essential if sales slow and margins continue to compress. 🚗💸 Dealers are increasingly taking control of the lending process to eliminate intermediaries, such as banks, and capture more profit. This shift allows them to generate significant revenue, mainly using the Lease Here Pay Here (LHPH) lending framework, which can yield nearly $14,000 per transaction. By controlling the lending process, Dealers can generate new or capture revenue that banks would otherwise earn, especially in an environment where banks have significantly increased fees and tightened lending standards. This approach helps Dealers offset margin compression by capturing high-margin opportunities in the subprime market. 📈 Ready to rev up your profits? 🚀 #LHPH #Automotive #Finance 🏁

Contrary to the narrative (Vendor Speak) that loan delinquencies are predominantly a subprime borrower issue, the data reveals a more complex reality. Delinquencies are NOT isolated to any specific demographic; instead, they are uniformly distributed across all age groups, underscoring the pervasive impact of financial strain and budget impact of soaring car prices. While suggesting retailers adjust their profit expectations due to surplus liquidity and supply chain disruptions beyond their control may seem counterintuitive, it's essential to recognize the broader consequences. #automotive #autofinance #technology #lending

As Banks Tighten - Subprime Demand Continues to Grow Did you know over a third of Americans have subprime credit scores, according to a CNBC study on subprime lending: https://lnkd.in/g5ASkT2J? That's a massive pool of potential customers for retailers. Fact: subprime borrowers are eager to buy cars, banks are tightening, and traditional financing options often exclude the unbankable. That's where Dealer Controlled Solutions (DCS) comes in. DCS offers innovative technology solutions that allow retailers to control the lending process and serve the subprime market. Expand Your Reach: Tap into a vast pool of creditworthy subprime buyers, boosting sales and profitability. Get More Cars Off Your Lot: The streamlined lending process gets subprime customers behind the wheel faster, keeping inventory moving. Reduce Risk: Expert underwriting and portfolio management from DCS give you peace of mind. By partnering with DCS, your dealership can: Become a Subprime Specialist: Stand out from the competition by catering to a broader customer base and attracting more buyers. Increase Inventory Turnover: Sell more vehicles and free up capital by offering financing options to subprime borrowers. Build Customer Loyalty: A positive car-buying experience builds trust and repeat business. The subprime market is a sleeping giant. DCS Dealer Controlled Solutions can be your key to unlocking its potential and driving your Dealership's success. Let's connect and discuss how DCS can help you fund more customers and generate outsized returns. #subprime #automotive #dealerships #financing #dcs #cardealers #financialservices #lhph

#CreditCards segment is seeing the sharpest increase among all the categories of #RetailLoans and that much of it flowing to the #subprime segment could make the #regulator worry as the unsecured #personalloans did in the recent past.

After a year-long Auto Finance Data Pilot project, the CFPB has announced they will seek expansion of the data they collect from lenders servicing indirect loans for Auto Dealerships. This move substantially increases the risks dealerships face in fair lending compliance for dealer reserve, and broadens analysis to include additional parts of financing contracts (including service contracts, maintenance plans, and pass-through dealership fees). Read about the CFPB data collection expansion... and how SelectFI can help you navigate the risks: https://lnkd.in/gDSEpd64 #autosales #Dealerships #AutoFinancing

One of the biggest reasons retail loan officers lose deals is because they don't have the right products to offer. If you're losing borrowers because you're working with the wrong product line, there's a few things you can do to still save your deals. Watch this quick video to find out what they are. How do you find ways to save deals when you don't have the right products to work with? Leave a comment below.   https://lnkd.in/gG7wsZ_T   #mortgagejobs#mortgagerecruiting#mortgagecareers#homefinancejobs#homefinancecareers#realestatefinancejobs#realestatefinancecareers#financialservicesjobs#financialservicescareers#loanofficerjobs#loanofficercareers#mortgagebrokerjobs#mortgagebrokercareers #nexarecruiter 

In Q4 2023, home loans were the only major credit product with deteriorating delinquencies (up 140 bps) — possibly due to payment shock caused by rising interest rates and high inflation. Get insight into delinquencies across other unsecured products: http://transu.co/6000w8BTu #CreditTrends #ConsumerCredit #CreditMarket #CreditInsights

Recent credit bureau market updates speak to a high rate of delinquency in auto, but those following specific pools of major lenders have already noticed performance improving, which is likely to continue throughout 2024. #afsa #creditunionsrock #creditunions #banking #autofinance #autolending #subprime #personalloans #powersports #fintech #subprimelending  #banking #trudecision https://lnkd.in/gXTfMN5y

TransUnion Credit Industry Snapshot Reported - Delinquency rates increased across most products for the fourth consecutive month. Auto delinquency, 30+DPD increased to 4.18% (14 bps); 60+DPD increased to 1.55% (2 bps) → Average amount financed increased to $29,854 (from $29,523) #autofinance #autofinancing #lending #lendingtrends #autolending #consumerlending

There are some unbelievable programs that are not necessarily available through retail banks, but can be offered by brokers - here is another one of them (more to come in later posts): ZERO PERCENT DOWN PURCHASE PROGRAM: * Loan Type: 30-year fixed primary purchases only. * Down Payment Assistance: Can cover up to the lesser of 3% or $15,000 of the down payment. * No payment required on the DPA, but it is paid off when the property is sold or the mortgage is refinanced * Owner-occupied primary residence * Annual qualifying income limit is 80% of area median income (AMI) * Minimum FICO: 620. * Maximum TLTV: 100%. * Minimum LTV: 95%. * Maximum Loan Amount: Conforming loan limits (no High Balance)