NOTHING GOOD: What’s Happening with Subprime Auto Loans?
After the financial crisis, banks tightened credit standards until performance improved. Monoline and dealer finance companies, on the other hand, continued to lend to high-risk borrowers – and it is these companies that are seeing non-performance rates shifting higher.
That might sound a lot like 2007-08, but at least this time around GM isn’t stuffing the channels with thousands and thousands of unsold vehicles.