Today's Headlines

    OH Legislature Passes HB 123

    On Tuesday, the Ohio House voted to send HB 123, which tightens regulations on payday lending, to Gov. John Kasich. On Wednesday, Kasich commented that he will most likely sign the bill into law. The bill was introduced in March 2017, not long after Pew Charitable Trusts released a study in December 2016 that reported that Ohio had the highest interest rates on payday loans, with an average interest and fees reaching 591%. The bill notably sets a 28 percent APR cap, limits loan amounts to $1000 and the life of a loan to one year, among limits on other fees and practices.

    AFSA commented on the bill in March.

    Stephen Hayes to Keynote Annual Meeting

    Stephen Hayes, editor in chief of the Weekly Standard will keynote AFSA's 2018 Annual Meeting, October 22-24 held in Marina del Rey, Calif.

    In edition to serving as editor in chief, Hayes is the author of two New York Times bestsellers: Cheney: The Untold Story of America's Most Powerful and Controversial Vice President and The Connection: How al Qaeda's Collaboration with Saddam Hussein Has Endangered America. He is a regular Fox All Stars panelist on Special Report with Bret Baier. His work has appeared in the New York Post, the Washington Times, Salon, National Review, and Reason. He has been a commentator on CNN, The McLaughlin Group, FNC, MSNBC, CNBC, and C-SPAN. Before becoming editor in chief, Hayes long served as a senior writer at The Weekly Standard.

    Schedule information and registration is available at the Annual Meeting website.

    Webinar to Cover Situational Awareness & the Regulatory Landscape

    Join us on August 8 at 2:00 p.m. ET as LenderLive presents Situational Awareness and the Regulatory Landscape.

    This program will take a look at the latest regulatory updates facing the auto finance industry and explore recent case law developments regarding the SCRA, including, wrongful repossession, lease termination, and military lending.

    The webinar will focus on recent regulatory developments with the FDCPA and TCPA that affect collection efforts and how leading companies are quickly adapting and implementing these changes. At the completion of the program, you will:

    + Be up to date on several key legislative changes affecting vehicle servicing

    + Understand the importance of being in compliance with those updates

    + Have tools that will help you communicate these changes with the rest of your organization

    Registration is open now!

    New webinars and topics are added constantly, so be sure to check the Webinar Resource Center for the most up-to-date program schedule. To pitch a topic for a future AFSA Webinar, contact Dan Bucherer.

    New Member Welcome

    AFSA welcomes back Barri Financial Group. Based in Houston, Texas, the company provides non-banking financial services such as traditional consumer installment loans (secured and unsecured), check cashing, wire transfers and other services directed at the US Hispanic population.

    Economist: Robust U.S. vehicle sales continuing for 12 months or longer

    AFSA Staff

    Auto finance companies can expect new light vehicle U.S. sales to maintain its 17- million unit pace for the remainder of 2018 and relative strength heading into 2019, according to an industry forecast.

    With positive “green light” factors such as consumer confidence, economic growth, job growth, tax reform, the housing recovery and credit availability, vehicle sales the next 12 months will continue much the same way as in the previous years of the current economic recovery.
    But headwinds for the industry continue to gather like a South Atlantic tropical storm and could come ashore in the second half of 2019 creating conditions for possible downside risk.

    “Going into 2020, recessionary risks could intensify,” said Mike Wall, Executive Director of Automotive Analysis for HIS Markit, a global automotive consulting company. “Policy mistakes remain the biggest risk to the current expansion.”

    Wall said he slightly increased his 2017 light vehicle forecast recently from his original forecast.

    “It’s tough to be bearish on the industry,” he said. “We are above the (sales) expectations we had last January.”

    Adding to Wall’s stop light summary of economic factors, under the yellow light is wage growth, incentives vs. transaction prices, and tariff and trade tensions.

    His red light signals are interest rate hikes by the Fed, the shifting of vehicle sales from new to used, risk policy mistakes, lease returns, used vehicle pricing and vehicle affordability pricing.

    He said the new car U.S. market will continue to be dominated by light trucks (pick-ups, SUVs and crossovers) but that passenger cars will remain in demand because of affordability issues. The spread continues to widen, however, as 11.7 million light trucks will be sold this year vs. 5.3 million passenger cars.

    Wall gave a presentation at the inaugural Automotive Intelligence Summit in Raleigh, N.C. hosted by Cherokee Publishing Co.

    BCFP Nominee May Get Vote Next Week

    AFSA Staff

    The Senate Banking Committee last week conducted a nomination hearing for Kathy Kraninger, the nominated successor to Mick Mulvaney as Director of the Bureau of Consumer Financial Protection (BCFP). Mulvaney was named Acting Director in November of 2017 and serves as the Director of the Office of Management and Budget (OMB).

    AFSA submitted a letter to the committee supporting Kraninger’s nomination in advance of the hearing.

    AFSA’s letter highlighted Kraninger’s extensive background and increasing responsibility in the federal government. “Ms. Kraninger is an excellent choice to lead the Bureau and to continue Mr. Mulvaney’s pragmatic, measured approach to ensuring that consumers benefit from safe, affordable products provided by the most responsible members of the consumer credit industry,” the letter continued.

    Last Thursday’s hearing lasted nearly three hours, with several Democrats questioning Kraninger over her supposed role in the immigration family separation issue, as Kraninger currently has DHS in her portfolio at OMB. Democratic senators also tried to stress Kraninger’s purported lack of financial services experience.

    Committee Chairman Mike Crapo (R-ID) said that a vote on the nomination would likely take place next week.