Sign up for mailing list.

X

Non-Bank Auto Finance Coming Into Focus with the CFPB

The auto finance industry has been recently enjoying some very profitable and productive years. After emerging from the latest recession, the industry has seen growth rates slowly return to pre-recession levels with record low delinquency and losses. While many other businesses including mortgage and credit card lending have been under intense focus by the regulators, the nonbank auto finance lenders have largely been off the federal regulators’ radar screen and left to work on improving their regulatory compliance and control programs in relative anonymity.

That changed in a profound way when the CFPB announced their proposal to supervise nonbank auto finance companies that make, acquire, or refinance 10,000 or more loans or leases in a year (~38 lenders) to ensure compliance with the federal consumer financial law. In their release, the CFPB specifically mentioned they want to make sure that auto lenders, including auto finance companies, are treating consumers properly throughout the life of loan. While the focus on discriminatory pricing and lending practices comes as no surprise and follows previous releases on the topic, the overall focus on the compliance structure and systems within the industry certainly has raised the question for auto executives: What do we need to do to demonstrate regulatory compliance and control?

Download the special report Non-Bank Auto Finance Coming into Focus with the CFPB to learn about the expectations of the CFPB, what makes up a formal compliance management program, and the Bridgeforce Five-Step Plan to address and implement a robust and sustainable compliance management system.

Category: Compliance