Today's Headlines

    Summer auto sales season off to a good start

    AFSA Staff

    Forecasts from leading automotive industry analysts predict car and light truck sales to rise 3 percent in May to 1.56 million vehicles, according to Automotive News.

    The rise from a year ago is mainly attributed to an extra selling day this May vs. a year ago and incentive deals offered over the Memorial Day weekend. There are 26 selling days this month. Automakers are scheduled to release May sales figures on Friday.

    "The summer selling season is off to a healthy start," Jeremy Acevedo, Edmunds manager of industry analysis, said in a statement. "Despite rising gas prices, shoppers are clearly demonstrating their confidence in the strength of the economy as they continue to seek out larger, more expensive vehicles."

    Publication tracks history of controversial auto finance guidance

    AFSA Staff

    F&I Magazine, which covers the auto finance industry’s retail finance channel, has issued a comprehensive analysis and history of the controversial auto finance guidance issued by the Consumer Financial Protection Bureau (CFPB) in 2013 and repealed by a joint resolution of Congress which was signed by President Trump last week.

    F&I Magazine tracks the CFPB’s journey and background in its decision to issue “guidance” for the vehicle finance industry to follow, in place of a clear regulatory rule that would have allowed for the industry to review and comment on before being issued.

    As a result, the CFPB engaged in what the industry called “rulemaking by enforcement” where reputable auto finance companies were examined and paid heavy fines for unintentional discrimination known as “disparate impact.” As a result, the rest of the industry had to base compliance programs on the “consent orders” the CFPB issued against those companies.

    The magazine cites a November 2013 industry forum where American Financial Services Association Executive Vice President Bill Himpler questioned the regulator's methodology for backing claims that dealer markups had a racially discriminatory effect. He reported that AFSA had determined that only one one-hundredth of 1 percent of all auto loan sales make it to the CFPB's consumer complaint database and said that AFSA would commission an independent study to challenge the bureau's approach. "Without this important analysis, it's like putting the cart before the horse," Himpler said.

    AFSA’s research found that the CFPB's proxy methodology overestimated the African-American population by 41 percent, while the bureau's own data revealed a 20 percent error rate in its methodology.

    AFSA Asks the Bureau to Improve Field Hearings

    AFSA Staff

    In response to a request for information from the Bureau of Consumer Financial Protection on its external engagements, AFSA wrote that the Bureau should improve field hearings so that they provide more meaningful feedback, instead of functioning as well-attended and lengthy press conferences designed to justify a proposed rule.

    This week’s letter was the fifth in a series of letters to the Bureau answering a call for evidence. The Bureau is collecting information on how to ensure that it is fulfilling its proper and appropriate functions to best protect consumers.

    In addition to commenting on the field hearings, AFSA wrote about the Bureau’s roundtables, advisory boards and councils, as well as its studies and methodologies. AFSA said, “… that the Bureau’s roundtables have been a successful way to gather information, that the Bureau’s advisory boards and councils should be more balanced, and that the Bureau should request comments on the studies it conducts and the methodologies it intends to use.”

    The next three letters will focus on rulemaking and regulations.

    Register for the AFSA Leadership Development Program

    Registration for the AFSA Leadership Development Program closes June 15.  Don’t miss this important opportunity for your employees to participate in a 6-day intensive program focused on the development of your organization's future leaders.  It offers challenging case studies and lively discussions, role-playing and team building exercises, your employees will hone their leadership, strategic thinking, and performance skills.  This fast-paced program allows participants to immerse themselves in innovative principles of management and leadership through class discussions, case analyses, ethics, professional presentations, negotiations, experience change simulation, and an outdoor team building exercise.  Always a highlight of this program is the power of networking with new acquaintances - the future leaders of our industry.  The dates for the AFSA Leadership Development Program are July 14-21, 2018.  

    Register online today!

    Welcome New Members

    AFSA is pleased to welcome four new members to the association.

    Acceptance Loan Company, based in Mobile, Alabama, is a wholly owned subsidiary of First US Bank serving customers with a broad range of consumer loan needs Direct and Indirect.

    Alston & Bird LLP’s Consumer Finance Regulatory Compliance Team in the New York office of the firm’s Financial Services and Products practice group looks for pragmatic solutions to the complex compliance challenges affecting financial services providers in all areas of consumer and commercial lending.

    eSoftware Solutions offers eLoan Software for the consumer finance industry.

    Preferred Auto Finance, LLC was established in 1998 as a motor vehicle finance facilitator and has grown to service Independent Dealers in over 20 states. Working with National Lending partners to procure loans of the highest efficiencies, they enable lenders to have a one-stop source for the Independent Dealer Market.

    Simplifying Titling with Tax & Fee Estimates

    AFSA Staff

    Wolters Kluwer’s Lien Solutions is excited to share the following webinar called “Simplifying Titling with Tax and Fee Estimates”.  It provides a detailed look at how tax and fee estimates can streamline your motor vehicle title management program. 

    Whether in the consumer person-to-person or commercial space, upfront understanding of taxes and fees can be the difference between a smooth process and an unsecured asset.  Requirements and fees can vary widely based on state or type of vehicle and a lender needs to be prepared to discuss the specifics with the borrower and ensure that the loan officer and documentation teams are aligned on expectations prior to loan closing.

    You can expect to learn:

    • How transactions that cross state lines can require special calculations of fees & taxes
    •  How following up on exceptions/ collections requires added time, cost and effort by lender
    • How a breakdown of required documents, jurisdictional fees and information needed for state-specific transactions can make all the difference