The Consumer Financial Protection Bureau (CFPB), using data from Experian, now estimates that fewer than 40 lenders account for 9 out of every 10 nonbank auto loans. Up until now, the CFPB has had no oversight over these companies, which in 2013 funded auto loans for nearly 7 million consumers.
The Bureau is now proposing an expansion in their oversight, placing a total of 38 nonbank auto lenders under their supervision. Each of these companies manages more than 10,000 loans and/or leases per year, and they comprise three major tiers:
- Captive finance companies
- Buy here pay here (BHPH)
- Regional finance companies
The Bureau is also considering adding auto title loans and auto loan securitization as part of its oversight. Interested parties can get more information here at Auto Finance News: http://www.autofinancenews.net/cfpb-plans-to-expand-oversight-to-38-non-bank-auto-lenders/