Subprime auto lending and securitization have cruised through the pandemic while events and conditions troubling other markets have only strengthened performance and collateral values. Now the success of originators, servicers, investors and other participants depends on anticipating how long positive trends may continue and what will be necessary to win in the new normal. While record used vehicle prices and a powerful mix of government support and private action have all contributed to the market’s success, the pandemic’s persistence is creating uncertainty and has the potential to upend the market’s trajectory.

To help navigate this unchartered terrain, we’ve assembled a panel of industry professionals engaged in origination, servicing, issuance, investing, and credit ratings. The panel will examine how participants’ expectations polled in Credit Chronometer’s 2021 market study compared to actual year-end results and share their expectations for 2022 and beyond.

Highlights of the webinar include:

  • Subprime auto deal structures have held up well, providing protection to investors in the most challenging moments of the pandemic.  Even though the market is normalizing and credit enhancements have been recalibrating, no one is expecting rating downgrades.

  • Expectations are for sky-high used vehicle values to come back to earth, even with supply issues continuing to effect new vehicle availability.

  • The market is starting to track typical historical trends. Delinquencies are slowly beginning to follow familiar seasonal patterns. Going forward, extensions will likely be granted more for every-day life events, than for pandemic reasons.

  • New CFPB regulations governing debt collection are not to be feared as they provide clear guidelines for servicers and others to follow, potentially reducing unanticipated application of laws and enforcement actions.  These new regulations will help push the industry to embrace technology and help it communicate with consumers on their terms, reducing friction in the market.

Speakers:

  • Joseph Cioffi, Chair, Insolvency + Finance, Davis+Gilbert

  • Ines Beato, Senior Vice President, US ABS - Global Structured Finance, DBRS Morningstar

  • Sean Morgan, Senior Vice President of Finance, Westlake Financial Services

  • Clayton Triick, Senior Portfolio Manager, Angel Oak Capital Advisors