Getting Ahead of the Curve: Preparing for Increases in Default Rates

As featured in the July/August edition of Non-Prime Times.

Every year it seems that sub-prime auto loans are on the rise, and as such, the potential for delinquencies significantly increases. Many deep sub-prime customers are a single life event away (job loss, medical issue) from entering default status. Current data warns of increasing default rates in the coming months, particularly as poor performing 2015 vintages come to fruition; these vintages are on track to become the worst performing in the history of car-loan securitizations, according to Fitch Ratings.

In this article, Denis Brosnan and Steve Garcia discuss rising delinquencies on auto loans and provide strategies and tactics to help lenders better prepare for increased default rates and significantly reduce losses.

Read the Full Article on Page 24

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