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In an effort to fill critical data gaps identified in the February 2023 Auto Finance Data Pilot, the Consumer Financial Protection Bureau sent requests for information on their loan portfolios to nine major auto lenders to request additional auto finance data. We are seeking comments regarding the collection. As with previous requests, the department issued these orders under its market surveillance authority, which allows it to “gather from time to time information regarding the organization, business practices, markets, and activities of covered persons and service providers.” is possible. 12 USCC § 5512(c)(1) and (4). Compliance with the requirements is mandatory.
The two annual data collection processes include:
- Comprehensive data from leading financial institutions. Lenders that originated 20,000 or more auto loans in the previous year will submit comprehensive loan-level data that reflects the scope of their original orders.
- Limited data from small financial institutions. Lenders with 500 to 20,000 loan originations report certain metrics such as number of repossessed vehicles and number of loan modifications.
Practice: With an estimated 4,000 auto finance companies under surveillance, the bureau’s expansion request is aimed at gathering a wealth of information that will strengthen the CFPB’s ability to monitor the auto finance market for risks to consumers. There is. As previously discussed ( here , here , and here ), the bureau focuses on rising auto prices and the impact it has had on borrowers’ loan amounts, monthly payments, delinquencies and foreclosures. The agency is also looking to take a closer look at auto lenders that operate in the subprime market and offer additional vehicle products. As we’ve seen here at his CFPB, market surveillance orders are often a precursor to formal rulemaking. Therefore, car financiers need to be extremely careful.
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