Navigating the Hazards of New Regulatory Expectations for the Auto Industry
The auto finance industry continues to experience tremendous growth and profitability. As prosperous growth and profitability in new and used auto sales continue, the regulatory and compliance environment is beginning to exert new pressures on auto financing providers.
In September of 2014, the Consumer Financial Protection Bureau (CFPB) announced their proposed expansion in the supervisory oversight of non-bank auto financing companies that initiate more than 10,000 loans and/or leases per year. This would serve to level the regulatory playing field between bank and non-bank lenders by placing approximately 38 non-bank lenders under the review and oversight of the CFPB.
The white paper Navigating the Hazards of New Regulatory Expectations for the Auto Industry focuses on the servicing aspects of the auto lending space; actions and services that are provided by the lenders themselves; actions and services provided by third parties on behalf of the lenders; and how to manage and track the regulatory compliance risks associated with servicing retail loans and leases.