Finance companies – Save Western OH http://savewesternoh.org/ Thu, 27 Oct 2022 14:41:54 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://savewesternoh.org/wp-content/uploads/2021/08/cropped-icon-32x32.png Finance companies – Save Western OH http://savewesternoh.org/ 32 32 MONEYME is at the forefront as Australian financial firms scramble for a technological edge over their peers https://savewesternoh.org/moneyme-is-at-the-forefront-as-australian-financial-firms-scramble-for-a-technological-edge-over-their-peers/ Sun, 23 Oct 2022 18:35:24 +0000 https://savewesternoh.org/moneyme-is-at-the-forefront-as-australian-financial-firms-scramble-for-a-technological-edge-over-their-peers/ As one of Australia’s only fintechs to have built its proven and proprietary technology from the ground up, MONEYME is leveraging its technology leadership to create business advantages and become a powerhouse in the Australian financial lending space. MONEYME (ASX:MS) is positioned to be a major player not just in Australia’s fast-growing fintech lending industry, […]]]>

As one of Australia’s only fintechs to have built its proven and proprietary technology from the ground up, MONEYME is leveraging its technology leadership to create business advantages and become a powerhouse in the Australian financial lending space.

MONEYME (ASX:MS) is positioned to be a major player not just in Australia’s fast-growing fintech lending industry, but across the lending industry as traditional lenders scramble to catch up to its technology capabilities.

Fintech lender co-founder, MD and CEO Clayton Howes says many traditional banks and lenders have been left behind when it comes to embracing technology for the modern financial world, and are now paying big money to become more tech-enabled.

“NAB bought Neobank 86,400 for a good amount of money just to leverage its technology and innovation,” he said.

He said another example is consumer finance company Latitude Group, which paid Symple $200 million in 2021 again just for a bit of technology.

The acquisition of SocietyOne puts MONEYME in a leading position

In March this year, MONEYME completed its acquisition of digital lender SocietyOne, bringing a step change to its $1.2 billion loan portfolio.

But while incumbents are acquiring fintechs to capitalize on their technological capabilities, MONEYME is using its own innovation to flesh out SocietyOne’s offering.

Howes said MONEYME had taken a major step in post-acquisition integration with SocietyOne, which enables the technology, on its proprietary Horizon technology platform.

Less than 6 months after the $132 million acquisition, SocietyOne loans are now issued through Horizon.

“SocietyOne’s customer experience is now powered by MONEYME’s technology, which is quite remarkable given the recent acquisition. But that’s the beauty of having your own high tech,” Howes said.

“Some acquisitions take years to deliver technology-driven results, but when you have the kind of technology we’ve built, which is microservices-based technology, you can go incredibly fast.”

He said for the first time in SocietyOne’s history, customers can get a loan approved and money deposited into their bank account in less than an hour.

“We’ve taken the inefficiency out of what used to be a 24-hour process. On the second day live, we created SocietyOne loans in 34 minutes,” he said.

MONEYME executes its profitability strategy

Howes said the company over the past year has shown it can generate both organic and inorganic growth. The group has now turned to profitability to build resilience in a world of higher interest rates.

“MONEYME was profitable for four consecutive years from 2017 to 2020, before entering hyper growth mode,” he said.

“We have quadrupled our business over the last fiscal year and have built significant scale advantages that we can now leverage to get back to statistical profit generation.”

Howes said removing human inefficiencies in traditional processing will help the company deliver on its promise to shareholders to return to statutory profitability and achieve more than $200 million in net revenue for FY23.

“There aren’t many companies that are statutorily profitable in our industry because they’re all trying to grow without operating as efficiently as they could if they had the right technology capabilities.”

Solid alternative to bank credit

Howes said MONEYME has found a niche with the underserved market of consumers who want to access credit products efficiently and are willing to use alternatives to banks.

In this way, MONEYME has captured a digitally savvy young audience in their financial journey. He points out that when the company was founded in 2013, the average age of customers was around 23.

“Nine years later, the average age of our customers is around 32. So they’re the same customers,” he said.

“We stayed relevant to them by leading the way with a digital-first approach that has now become mainstream.

“This is a customer demographic that is prime for credit card, personal and auto financing, and almost ready for mortgages,” he said.

Get higher credit scores

Howes said the credit profile of its loan portfolio is changing by design, as MONEYME targets customers with higher credit ratings.

“Equifax’s average profile of our loan portfolio is now 711, and the portion of our loan portfolio with a score below 600 has dropped significantly,” he said.

“600 is still a good score when dealing with a younger demographic with less time to build a credit history, but that’s now only 19% of our portfolio, down from 36% a year ago. a year.”

Step up a gear

Autopay continues to be a priority for the company as it prepares to unlock opportunities in the auto finance market through strategic partnerships and new product innovations designed to transform the shopping experience of a car for consumers.

“Banks have clearly shown their hands and want to protect their mortgage books, which gives us a ton of space in the critical auto finance industry,” Howes said.

“Banks are getting out of auto financing and in a single year we’ve grown Autopay from a few million to half a billion loans, which is phenomenal.”

Howes also thinks the auto finance niche is fairly well equipped to weather rising interest rates.

“Some of the rate increases we’ve passed on to the client mean that a $30,000 car loan only resulted in a $30 increase in monthly payments for the client. So it’s not the same as raising the rate of a mortgage, which can have a significant impact on people’s cost of living and purchasing power,” he said. .

This article was developed in conjunction with MONEYME, a Stockhead advertiser at the time of publication.

This article does not constitute advice on financial products. You should consider obtaining independent advice before making any financial decisions.

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Q2 net profit of Saudi financial companies drops 67.7% from Q1 to $75.2m: SAMA https://savewesternoh.org/q2-net-profit-of-saudi-financial-companies-drops-67-7-from-q1-to-75-2m-sama/ Wed, 19 Oct 2022 07:00:00 +0000 https://savewesternoh.org/q2-net-profit-of-saudi-financial-companies-drops-67-7-from-q1-to-75-2m-sama/ ‘It will be a breakthrough’: Saudia buys 100 electric planes to revolutionize domestic travel Riyadh: Saudi Arabian Airlines has agreed to buy 100 innovative electric vertical take-off and landing planes as it seeks to connect Jeddah to major tourist destinations in the Kingdom, according to one of the company’s top executives. Speaking to Arab News […]]]>

‘It will be a breakthrough’: Saudia buys 100 electric planes to revolutionize domestic travel

Riyadh: Saudi Arabian Airlines has agreed to buy 100 innovative electric vertical take-off and landing planes as it seeks to connect Jeddah to major tourist destinations in the Kingdom, according to one of the company’s top executives.

Speaking to Arab News on the sidelines of the Future Investment Initiative in Riyadh, group marketing director Khaled Tash said Saudia – the airline operated by his company – will be the first in the region to use the technology.

The agreement was reached with the German company Lilium, which is in the final phase of testing the aircraft, whose operations should begin in two years.

Tash said Saudia would use the plane to improve access to destinations along the Red Sea and Mecca.

“It will actually be our first priority in the next few years to connect the airport with Makkah, through which some of our premium passengers will be able to land at Jeddah airport, take one of these small planes and go to Makkah and back in minutes. It will be a breakthrough,” he said.

The executive insisted that the announcement shows that air mobility in Saudi Arabia is about to enter a different era.

“When we think about what is happening in the country, Vision 2030 is about a lot of the transformations that are happening in the Kingdom and maybe today’s announcement, which we made with Lilium, is probably a testament of how Saudi national champions like Saudi Airlines walk the conversation,” Tash said.

“We want to be at the forefront of innovation, EVTOLs – or electric, vertical, take-off and landing aircraft – are the future of air mobility, I think over particularly short distances. first airline from the Middle East and North Africa in this region, the first airline to take this step towards EVTOL, I think it means a lot to us,” he added.

Tash used the example of seaplanes linking islands in the Maldives as bringing economic benefits to tourism – something he hopes will be replicated in Saudi Arabia.

The 100-vehicle commitment will also provide good value for money for his business, he added, saying: “By getting through big players like Saudia the early adoption of such technology or such innovation, it will hopefully have a very good impact on the cost.

“So if we start with Jeddah in Makkah, then with Jeddah in the Red Sea or Jeddah in AlUla URL, or Jeddah in King Abdullah Economic City, the more use cases we can find for that, the more we will have business opportunities and the less it will cost,” he said.

“So if I have a plane that goes 20 times between Jeddah and Makkah every day, it will definitely be cheaper than going six times a day,” he added.

Besides the economic arguments for buying the aircraft, there is also a clear environmental benefit.

Tash made it clear that while sustainability is a very important topic under the Vision 2030 umbrella, it is also for Saudia.

“We believe that electricity, in terms of these types of EVTOLs, is the future of aviation, and we believe that our sustainability initiatives will be further strengthened,” he said.

“This is not the only sustainability initiative we are leading. We work on so many different fronts. We have one of the youngest fleets overall in our entire fleet which also has lower emissions. We are committed to working more and more on sustainability,” added Tash.

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Saudi financial companies see biggest quarterly drop in net profit since 2018 https://savewesternoh.org/saudi-financial-companies-see-biggest-quarterly-drop-in-net-profit-since-2018/ Tue, 18 Oct 2022 18:56:37 +0000 https://savewesternoh.org/saudi-financial-companies-see-biggest-quarterly-drop-in-net-profit-since-2018/ RIYADH: Egypt’s Sovereign Wealth Fund and EFG Hermes’ Egyptian education platform have signed an agreement worth 500 million Egyptian pounds ($25 million) to acquire a 56% stake in the education platform. education Selah El Telmeez, Asharq reported Tuesday citing people familiar with the matter. Founded in the 1960s, Selah El Telmeez provides educational content and […]]]>

RIYADH: Egypt’s Sovereign Wealth Fund and EFG Hermes’ Egyptian education platform have signed an agreement worth 500 million Egyptian pounds ($25 million) to acquire a 56% stake in the education platform. education Selah El Telmeez, Asharq reported Tuesday citing people familiar with the matter.

Founded in the 1960s, Selah El Telmeez provides educational content and learning guides for K-12 students in a variety of subjects.

“Our main objective in this partnership is to capitalize on the existing wide range of technological advances available around the world,” said fund CEO Ayman Soliman.

“With EEP, we have realized the potential to create diverse and engaging educational content to cater to the advancement of important middle and low income segments in all 27 governorates of Egypt,” he added.

Soliman explained that the new investment complements the sovereign wealth fund’s education investment strategy, which aims to provide a large segment of Egyptians with innovative and affordable education solutions to help students meet their learning challenges.

The American law firm White and Case acted as legal adviser to the Selah El Telmeez platform, while the Egyptian ADSERO-Ragy Soliman and Partners acted as the legal adviser to the sovereign wealth fund.

The share transfer is expected to take about two months to complete, one of the sources told Asharq.

The source added that the EEP will acquire 51% of Selah El Telmeez and the sovereign wealth fund will buy 5% of the shares.

“Selah El Telmeez supports millions of students across Egypt, spanning almost every governorate with the industry’s best content and engaging learning materials,” said Mostafa Hamdy, Co-CEO of Selah El Telmeez. .

“Our partnership with EEP will enable us to unlock and accelerate our ambitious plan to expand our full suite of services nationwide,” he added.

As per the agreement, Selah El Telmeez will operate independently under the same brand and continue to be managed by the current team, comprising CEO Walid Hamdy and Co-CEO Hamdy.

EEP’s educational platform has grown over the past three years, with its portfolio currently covering a broadly diverse pool of 18 national and international schools and preschools operating in Cairo and Alexandria.

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ABCoA organizes a user conference for financial companies and BHPH and LHPH dealers https://savewesternoh.org/abcoa-organizes-a-user-conference-for-financial-companies-and-bhph-and-lhph-dealers/ Thu, 13 Oct 2022 12:31:00 +0000 https://savewesternoh.org/abcoa-organizes-a-user-conference-for-financial-companies-and-bhph-and-lhph-dealers/ Since the inaugural event three years ago, thousands of users and prospects have joined ABCoA Deal Pack’s user conference and virtual boot camps to deepen their product knowledge, streamline operations and increase profits. JACKSONVILLE, Florida., October 13, 2022 /PRNewswire/ — Advanced Business Computers of America, Inc. (ABCoA), a software-as-a-service company rooted in the used car […]]]>

Since the inaugural event three years ago, thousands of users and prospects have joined ABCoA Deal Pack’s user conference and virtual boot camps to deepen their product knowledge, streamline operations and increase profits.

JACKSONVILLE, Florida., October 13, 2022 /PRNewswire/ — Advanced Business Computers of America, Inc. (ABCoA), a software-as-a-service company rooted in the used car industry and known for Deal PackMT and cyclCRMMTorganizes its fourth Deal Pack user conference on October 17e and 18e at their headquarters Jacksonville, Florida.

The user conference covers the complete and state-of-the-art Deal Pack ecosystem, including cyclCRMMT, desking, digital document management and storage, loan management and collections tools, omnichannel payment processing, automated reporting and its industry-leading integrated accounting. Speakers provide in-depth training sessions on Deal Pack Sales, Finance and Service Modules and Parts for Retail, BHPH and Rental Dealers, Related Finance Companies, Direct and Indirect Finance Companies .

ABCoA hosts user conferences to help its users reduce chargebacks by using Deal Pack’s powerful Collections module, how to keep their books balanced with Deal Pack’s built-in ledger module and real-time accounting, and the benefits to have a fully integrated dealership. management software with best-in-class features and integrations. The User Conference also offers attendees the opportunity to review the latest features, integrations and innovations added by Deal Pack, in addition to operational fundamentals and best practices.

“The Deal Pack User Conference is a great learning experience for our dealers and finance companies,” said Karolina Jarvis, Marketing Assistant at ABCoA. “Not only do they see how to maximize new and existing Deal Pack features, but they also have the opportunity to collaborate with other Deal Pack users, much like a performance band. Our format encourages participation and feedback that have a direct impact on the future development of Deal Pack; there is no charge to attend – breakfast, lunch and dinner are provided, as well as a special event; attendees meet staff and visit our headquarters. We’re having a lot of fun!”

About Advanced Business Computers of America, Inc.

Advanced Business Computers of America, Inc. (ABCoA) is a software-as-a-service company focused on transforming the used car industry. Since 1983, ABCoA has been helping used car dealerships and subprime finance companies succeed with innovative and reliable software. Its cloud-native ecosystem supports all types of loans and seamlessly connects every part of business operations. Based at Jacksonville, Florida, ABCoA is continually raising the standard of software in the subprime industry. Founding member of the Association of Dealer Management Software (ADMS).

Media Contact:
Evie Hedyvice president
Advanced Business Computers of America, Inc.
Box 54221
Jacksonville, Florida 32245
+1(904)354-2073
[email protected]

SOURCE ABCoA

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Saudi Central Bank to finalize law on control of financial companies through public consultation https://savewesternoh.org/saudi-central-bank-to-finalize-law-on-control-of-financial-companies-through-public-consultation/ Thu, 06 Oct 2022 10:00:49 +0000 https://savewesternoh.org/saudi-central-bank-to-finalize-law-on-control-of-financial-companies-through-public-consultation/ The building and construction industry is one of the largest in the global economy, with approximately $10 trillion spent annually on construction-related goods and services. But it’s also disproportionately destructive as one of the most energy-intensive polluting industries on the planet. According to figures published on the USCAD.com website in July this year, the global […]]]>

The building and construction industry is one of the largest in the global economy, with approximately $10 trillion spent annually on construction-related goods and services.

But it’s also disproportionately destructive as one of the most energy-intensive polluting industries on the planet.

According to figures published on the USCAD.com website in July this year, the global construction industry is still responsible for 38% of CO2 emissions, 23% of air pollution, 40% of water pollution, 50% of waste from landfills, 21% of depletion of natural resources and 40% of energy consumption.

These are not new numbers. It’s not like the construction industry has suddenly embarked on a path of self-destruction.

In Las Vegas in 2019, a conference organized by software company Autodesk was told that the construction and manufacturing industries were extremely wasteful and were among the biggest polluters in the world.

And in 2021, the overall picture of the world’s future received another blow when COP 26 delegates admitted they were far from meeting previously set targets to slow global warming.

“Our theory of how we are transforming the AEC (architectural engineering and construction) industry is unchanged. We are keen to bring (new) industry methods and processes to it,” said Autodesk CEO Andrew Anagnost on the sidelines of the Autodesk University 2022 conference in New Orleans.

Anagnost said data and technology are available to help make the industry more environmentally efficient and less wasteful.

There are already companies providing digital information that can predict potential flaws in plans before they become reality, and even the amount of material needed – and yet, Anagnost said there are still companies that don’t. did not use this information.

“The biggest waste you see in the AEC ecosystem is people inventing it along the way.”

In contrast, he said the manufacturing industry generally sticks to its plans so that the end product is what was intended from the start.

“This kind of precision needs to evolve in the AEC industry. And that’s why you see us building these things that come together on both sides. And when that work is done, we think we will have had an impact on how these industries work. Until then, they continue to redo and undo at a rate that is, you know, unprecedented in other industries,” he added.

But it’s not all bad news, efforts are being made to reduce the amount of waste using cloud-based technology, and it’s the Middle East that seems to be embracing this technology.

TURNING BUILDINGS INTO DATA FARMS

The good news is that the Middle East has largely cleaned up, according to Naji Atallah, construction and manufacturing manager at Autodesk Middle East.

Speaking to Arab News, he said the reason for the improvement was a factor that had always been there.

He said construction in the area was generally based on undeveloped land, removing the need to consider existing structures, which could introduce additional costs.

“There is no major legacy of buildings, bridges and roads that need to be maintained,” he explained, adding that the region’s construction industry was effectively working on a “blank canvas. “, which allowed developers to put sustainability at the forefront of their project. projects.

“If I look at probably all the megaprojects in the region, sustainability has been one of the big goals they see.”

“We’ve seen a shift (in the Gulf region) from we want everything delivered tomorrow, to we want things delivered in a better way.”

Referring to the Red Sea project in Saudi Arabia and the Dubai Museum of the Future, he said increased efforts were now being made to ensure a sustainable approach to these projects.

And using software technology, developers have been able to create structures that use less energy and materials in their construction using information gathered from predictive modeling that shows designers how a structure will behave even before it it is not built.

Digitization of the building industry – if adopted – could potentially revolutionize the way it works – from reducing waste to reducing pollution to reducing costs.

“Sensors are so cheap now,” Atallah said, “that they could be put in every new structure – we don’t even have to know what – or if they’re going to be used – and collect all kinds of data. information.”

This data, he said, could then be used to predict any structural problems, how to improve fuel economy – to name two – but not just for this structure, but also for future projects.

This data, he said, could become a commodity that could be sold to help improve future projects.

BRIDGING THE GAP

Imagine a building – in fact any structure – which, upon completion, begins to collect data which can be used to troubleshoot problems before they are noticed by the human eye and help to future new constructions.

It sounds futuristic – but the truth is the technology is already here – it’s just a matter of people in the industry using it.

Dubai-headquartered Dar Al-Handasah, which hails from Lebanon and is the world’s 10th design firm – third in the Middle East, has created a cantilever bridge constructed from plastic recycled – mixed with fiberglass to create a poxy – and a 3D printer.

Using algorithms, the designers were able to come up with a design that created a bridge using minimal materials which, once attached with the sensors, could teach them how to better improve the product in subsequent designs.

The bridge is made of a modular system from 70% recycled materials.

This is a step away from traditional construction methods, with the bridge being built in one piece in a factory environment before being transported to its place of use when completed.

Cloud-based technology provided by Autodesk was used to create virtual modules of the bridge to calculate the best design in terms of material usage, appearance and structural durability.

Ghassan Zein, the director of the Lebanese digital practice at Dar Al-Handasah, said the bridge was a first of its kind, he said as such they needed to see how it performed when it was used was essential for future developments, so it was equipped with sensors.

“We have intelligence monitoring of the bridge that would monitor its operation because it’s new,” Zein told Arab News on the sidelines of the Autodesk University 2022 conference in New Orleans.

The bridge is a new shape, a new design, Zein explained, “So we need to know if it’s doing well.”

The company has a team whose role is to monitor the data collected from the bridge.

“They are analyzing the data and continuing to modify the design of future projects,” he said.

Zein said structural engineers approached the design of what was safe, what wasn’t, what worked well, what didn’t, using live data gathered from sensors in the structure of the bridge.

FROM PREFABRICATED TO MODULAR

The modular approach to bridge construction is not a new concept. In Britain, in the 1950s, low-cost social housing was created.

These typically low, one-story buildings consisted of walls and roofs created offsite and then assembled when ready.

But they were generally of a low standard with materials that were not durable, leaving structurally unsound properties and some of the materials even being harmful to people’s health – including the asbestos cladding.

Fast forward 70-80 years and the concept of building parts or entire structures such as the 3D printed bridge off-site and then moving them to their final location is now proving to be a leading construction method, both on both economically and environmentally.

The beach villas on the Red Sea project off the coast of Saudi Arabia and the Dubai Museum of the Future were all built in a factory environment, before being shipped to their final destinations.

The methods offered in functions such as Autodesk University are a revelation to the industry.

Investing in technology and the construction industry could transform from one of the biggest enemies of the environment to a major ecological player.

It just needs those in the industry to embrace the future.

The key to remember is to collect the data, learn what the potholes are before construction begins, and then get down to the real business – ultimately the result is more efficient.

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CFPB and DOJ Remind Auto Finance Companies of SCRA Protections for Military | Troutman pepper https://savewesternoh.org/cfpb-and-doj-remind-auto-finance-companies-of-scra-protections-for-military-troutman-pepper/ Thu, 22 Sep 2022 18:16:43 +0000 https://savewesternoh.org/cfpb-and-doj-remind-auto-finance-companies-of-scra-protections-for-military-troutman-pepper/ On July 29, the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) issued a joint letter to auto finance companies, reminding them of the protections that the Servicemembers Civil Relief Act (SCRA) offers service members. and their dependents during periods of military service. These protections include several related to car loans and […]]]>

On July 29, the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) issued a joint letter to auto finance companies, reminding them of the protections that the Servicemembers Civil Relief Act (SCRA) offers service members. and their dependents during periods of military service. These protections include several related to car loans and leases, which are particularly important given that recent CFPB research has shown that military members tend to have more car loan debt at a younger age than their civilian counterparts, largely due to the need for transportation while living on a military base. The SCRA is enforced by the DOJ and covers debt incurred prior to active duty, while the CFPB is authorized to combat unfair, deceptive, or abusive practices related to auto financing for all members of the public, including military members, by under the Consumer Financial Protection Act.

Auto finance companies are encouraged to review applicable SCRA provisions and ensure compliance, including provisions relating to:

  • Vehicle repossession protections
    • If a borrower finances or leases a vehicle before entering military service, the lender cannot repossess the vehicle during the borrower’s military service without a court order.
    • Auto finance companies are responsible for determining whether borrowers are protected by this provision, and members of the military are not required to notify their military status to receive this protection.
  • Early termination of vehicle rental
    • The SCRA allows service members to terminate motor vehicle leases earlier, and without penalty, after entering military service or receiving orders for a permanent change of station or deployment.
  • Auto Loan Interest Rate Caps
    • The SCRA limits the amount of interest that can be charged to members of the military on loans taken out before military service to a maximum of 6% per year.

This joint letter joins a blog post published by the CFPB in February 2022, which we discussed here, outlining regulatory priorities in the auto finance market and showing that auto finance is a top priority for the CFPB.

We are here to help you

The DOJ continues to take aggressive action to secure service members’ rights under the SCRA. Auto finance companies are advised to ensure their SCRA compliance programs are up to date to prevent compliance issues before they arise. We have the experience to help you. Troutman Pepper’s Military Lending Practice Group comprises one of the oldest and most respected consumer financial services and regulatory practices in the nation.

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CFPB and DOJ remind auto finance companies of SCRA protections for service members https://savewesternoh.org/cfpb-and-doj-remind-auto-finance-companies-of-scra-protections-for-service-members/ Thu, 22 Sep 2022 07:00:00 +0000 https://savewesternoh.org/cfpb-and-doj-remind-auto-finance-companies-of-scra-protections-for-service-members/ On July 29, the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) issued a joint letter to auto finance companies, reminding them of the protections that the Servicemembers Civil Relief Act (SCRA) offers service members. and their dependents during periods of military service. These protections include several related to car loans and […]]]>

On July 29, the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) issued a joint letter to auto finance companies, reminding them of the protections that the Servicemembers Civil Relief Act (SCRA) offers service members. and their dependents during periods of military service. These protections include several related to car loans and leases, which are particularly important given that recent CFPB research has shown that military members tend to have more car loan debt at a younger age than their civilian counterparts, largely due to the need for transportation while living on a military base. The SCRA is enforced by the DOJ and covers debt incurred prior to active duty, while the CFPB is authorized to combat unfair, deceptive, or abusive practices related to auto financing for all members of the public, including military members, by under the Consumer Financial Protection Act.

Auto finance companies are encouraged to review applicable SCRA provisions and ensure compliance, including provisions relating to:

  • Vehicle repossession protections
    • If a borrower finances or leases a vehicle before entering military service, the lender cannot repossess the vehicle during the borrower’s military service without a court order.
    • Auto finance companies are responsible for determining whether borrowers are protected by this provision, and members of the military are not required to notify their military status to receive this protection.
  • Early termination of vehicle rental
    • The SCRA allows service members to terminate motor vehicle leases earlier, and without penalty, after entering military service or receiving orders for a permanent change of station or deployment.
  • Auto Loan Interest Rate Limits
    • The SCRA limits the amount of interest that can be charged to members of the military on loans taken out before military service to a maximum of 6% per year.

This joint letter joins a blog post published by the CFPB in February 2022, which we discussed here, outlining regulatory priorities in the auto finance market and showing that auto finance is a top priority for the CFPB.

We are here to help you

The DOJ continues to take aggressive action to secure service members’ rights under the SCRA. Auto finance companies are advised to ensure their SCRA compliance programs are up to date to prevent compliance issues before they arise. We have the experience to help you. Troutman Pepper’s Military Lending Practice Group comprises one of the oldest and most respected consumer financial services and regulatory practices in the nation. Let us help you ensure that our service members are rewarded for their valuable service to our country.

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DOJ and CFPB Warn Auto Finance Companies of Service Member Protections | Nelson Mullins Riley & Scarborough LLP https://savewesternoh.org/doj-and-cfpb-warn-auto-finance-companies-of-service-member-protections-nelson-mullins-riley-scarborough-llp/ Tue, 20 Sep 2022 18:16:22 +0000 https://savewesternoh.org/doj-and-cfpb-warn-auto-finance-companies-of-service-member-protections-nelson-mullins-riley-scarborough-llp/ The U.S. Department of Justice (“DOJ”) and the Consumer Finance Protection Bureau (“CFPB”) have issued a joint letter reminding the auto finance industry to enforce certain interest rate restrictions and other consumer protections that benefit active duty members and their families. The joint letter advises auto finance providers to comply with the protections afforded to […]]]>

The U.S. Department of Justice (“DOJ”) and the Consumer Finance Protection Bureau (“CFPB”) have issued a joint letter reminding the auto finance industry to enforce certain interest rate restrictions and other consumer protections that benefit active duty members and their families. The joint letter advises auto finance providers to comply with the protections afforded to active duty military members and their dependents under the Military Civil Assistance Act (“SCRA”). This law provides legal protections and financial benefits to service members that are not available to civilian consumers.

The Bureau has focused on auto finance regulatory compliance for months. Earlier in the year, the agency issued a compliance bulletin featuring CFPB reviews and enforcement actions, including illegal seizure of cars, sloppy record keeping, unreliable pay statements and a ransom for personal property.

Recent research from the CFPB indicates that military members have more car loan debt at a younger age than their civilian counterparts. Furthermore, the CFPB has found that the military is often the target of unfair or predatory lending practices. In response, the DOJ and CFPB have highlighted certain obligations auto finance companies have under the SCRA. The joint letter focuses on SCRA’s three key enforcement priorities:

  • Limits on Vehicle Repossessions – The SCRA prohibits an auto finance company from repossessing a vehicle during the borrower’s military service without a court order, if the borrower financed or leased the vehicle before entering in military service.
  • Early Lease Termination – The SCRA allows service members to terminate motor vehicle leases early and without penalty after entering military service or receiving eligible military orders for a permanent change of station or deployment.
  • Capped Interest Rates on Auto Loans – The SCRA also limits interest rates on loans taken out before military service to a maximum of 6% per annum, including most fees. If the military makes an appropriate request, a creditor must forgive and not defer any interest over 6%.

The CFPB is responsible for reviews and enforcement under the Military Loans Act, a federal law that limits interest and fees on certain types of loans made while a borrower is on active duty. Consumer complaints are investigated and investigated by the CFPB, which is also authorized “to combat unfair, deceptive or abusive practices relating to automobile financing for all members of the public, including the military, under the consumer financial protection,” as stated in the joint letter. In contrast, SCRA is enforced by the DOJ and covers debts incurred prior to active duty. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said, “The Civil Rights Division is responsible for ensuring that the rights of those who serve in our country’s armed forces are protected from discrimination and unfair treatment”.

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Assets under management of housing finance companies will increase by 10-12% in FY23: CRISIL https://savewesternoh.org/assets-under-management-of-housing-finance-companies-will-increase-by-10-12-in-fy23-crisil/ Wed, 14 Sep 2022 10:57:01 +0000 https://savewesternoh.org/assets-under-management-of-housing-finance-companies-will-increase-by-10-12-in-fy23-crisil/ Mumbai: Assets under management (AUM) of housing finance companies are expected to grow 10-12% in this fiscal year 2022-23, compared to 8% in the last fiscal year, mainly due to home loans, which could grow by 15 %. cent over a year, said CRISIL. In the last fiscal year, HFC growth has been a two-part […]]]>

Mumbai: Assets under management (AUM) of housing finance companies are expected to grow 10-12% in this fiscal year 2022-23, compared to 8% in the last fiscal year, mainly due to home loans, which could grow by 15 %. cent over a year, said CRISIL.

In the last fiscal year, HFC growth has been a two-part story: a stunting of about 2% (annualized) in the first half due to the second wave of the pandemic, and a V-shaped growth of 14 % (annualized) to the second. half.

“Structural factors driving end-user housing demand remain intact this fiscal year despite the impact of rising house prices and interest rates. And despite recent increases, interest rates remain below previous cycles and have not had a significant impact on client interest,” said Krishnan Sitaraman, Senior Director and Deputy Director of Ratings, CRISIL Ratings.

Despite the growth, housing finance companies are expected to continue losing home loan market share to banks amid stiff competition.

Although access to finance is not a big challenge for most housing financiers, a competitive cost of borrowing is crucial compared to banks, which benefit from low-cost deposit financing.

HFCs have already conceded 400 basis points of market share to banks over the past four fiscal years, bringing banks’ share to 62% in March 2022.

It is unlikely that this trend will reverse in the short term. Banks are expected to further gain market share with HDFC Ltd, the largest HFC, which is expected to merge with HDFC Bank in the next fiscal year.

The ability of HFCs to compete with banks in the traditional salaried home loan segment remains a challenge given their relatively higher funding costs.

HFCs are expected to increasingly partner with banks and leverage each other’s strengths to grow their books. Some HFCs are already moving in this direction. Therefore, growth in assets/books is likely to be less than growth in assets under management.

Meanwhile, one segment where HFCs have grown relatively faster is in affordable home loans, where competition from banks is limited.

Affordable Housing Financiers (AHFC) has therefore seen relatively better growth of 12-15% in the recent past, despite moderating from earlier levels. Given their relatively small footprint and strong underlying demand, AHFCs are expected to continue to grow faster than traditional HFCs.

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Housing finance companies will concede market share to banks: Crisil https://savewesternoh.org/housing-finance-companies-will-concede-market-share-to-banks-crisil/ Wed, 14 Sep 2022 07:00:00 +0000 https://savewesternoh.org/housing-finance-companies-will-concede-market-share-to-banks-crisil/ MUMBAI: Housing finance companies (HFCs) are expected to continue losing market share of home loans to banks amid stiff competition. According to a Crisil report on Wednesday, HFCs have already conceded 400 basis points of market share to banks over the past four fiscal years, pushing banks’ share up to 62% in March 2022. This […]]]>

MUMBAI: Housing finance companies (HFCs) are expected to continue losing market share of home loans to banks amid stiff competition. According to a Crisil report on Wednesday, HFCs have already conceded 400 basis points of market share to banks over the past four fiscal years, pushing banks’ share up to 62% in March 2022.

This is despite the fact that assets under management (AUM) of housing finance companies are expected to grow 10-12% this fiscal year, compared to 8% growth in the prior fiscal year, driven by home loans, which could increase by 15% year on year.

“The ability of HFCs to compete with banks in the traditional salaried home loan segment remains a challenge given their relatively higher funding costs. And in the non-real estate lending segments (developer finance and LAP), which have been yield accelerators, exposure to HFCs has declined over the past few years, putting pressure on overall spreads,” he said. the rating agency said in its report.

Growth in developer financing and loans on property (LAP) will remain subdued. However, affordable housing financiers are expected to grow relatively faster at 18-20%.

The real estate lending segment (72% of assets under management) grew by 11% over the last fiscal year due to better accessibility, better revenue visibility following the resumption of economic activity, higher demand in urban areas and an increased preference for home ownership. In other segments, growth was flat, with only large, well-capitalized HFCs active in wholesale funding, according to the report.

“Structural factors driving end-user housing demand remain intact this fiscal year despite the impact of rising house prices and interest rates. And despite recent increases, interest rates remain below previous cycles and have not had a significant impact on client interest,” said Krishnan Sitaraman, Senior Manager and Deputy Head of Ratings, CRISIL Ratings.

According to the rating agency, HFCs should increasingly partner with banks and leverage each other’s strengths to grow their books. Some HFCs are already moving in this direction. Therefore, growth in assets/books is likely to be less than growth in assets under management.

One segment where HFCs have grown relatively faster is in affordable home loans, where competition from banks is limited. Affordable Housing Financiers (AHFC) has therefore seen relatively better growth of 12-15% in the recent past, despite moderating from earlier levels. Given their relatively small footprint and strong underlying demand, AHFCs are expected to continue to grow faster than traditional HFCs, the report adds.

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