Skip to main content

Sub-Prime Auto Finance Santander: Predatory Lending Here In Here In Mesa

The City of Mesa went into hyper-drive last year HYPING all the economic development benefits and [low-paying] jobs with headlines like this back in November 2015
Nearly 1,000 jobs coming to Mesa's Fiesta District
Source: AZ Family 
Listen and watch Mesa City Manager Chris Brady make the overblown introductions for the "Grand Opening" at Centrica 


A report published today May 23, 2017 12:06 PM by Phoenix Capital Research 
Subprime 2.0: Lending a $1 Trillion to People
With No Proof of Job or Income
SubPrime 2.0 is proving far worse than even we suspected.
Source: Zero Hedge
If you’ve not been following this story, our view is that the auto-loan industry - and it's VERY BIG HERE IN MESA - is
Subprime 2.0: the riskiest, worst area in a massive debt bubble, much as subprime mortgage lending was the riskiest worst part of the housing bubble.


In both instances, these lending industries were rife with fraud, terrible due diligence, and the like. So when the debt bomb blew up, they were the first to implode.
However, it would appear now that the Subprime 2.0 was even worse than Subprime 1.0 in terms of verifying income.
Santander Consumer USA Holdings Inc., one of the biggest subprime auto finance companies, verified income on just 8 percent of borrowers whose loans it recently bundled into $1 billion of bonds, according to Moody’s Investors Service.
The low level of due diligence on applicants compares with 64 percent for loans in a recent securitization sold by General Motors Financial Co.’s AmeriCredit unit.
The lack of checks may be one factor in explaining higher loan losses experienced by Santander Consumer in bond deals that it has sold in recent years…
 Source: Bloomberg
Santander only verified income on just 8% of autoloans.
Put another way, on more than 9 out of every 10 autoloans, Santander didn't even check if the person had a job.
Pretty horrific.
However, the story also notes that even the more diligent lender AmeriCredit verified income on only 64% of loans.
So… two of the largest autoloan lenders basically were signing off on loans without proving the person even had a JOB either roughly half the time or roughly ALL the time.
And this is on a $1.0 TRILLION debt bubble.
Meanwhile, stocks are flirting with all time highs
Sounds a bit like late 2007 doesn't it?
We offer a FREE investment report outlining when the bubble will burst as well as what investments will pay out massive returns to investors when this happens.
It's called The Biggest Bubble of All Time (and three investment strategies to profit from it).


We made 1,000 copies to the general public.
As I write this there are just 19 are left.
To pick up your FREE copy...
CLICK HERE!
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
 

Comments

Post a Comment

Popular posts from this blog

World Defense News

Flash News: Ukraine Intercepts Russian Kh-59 Cruise Missile Using US VAMPIRE Air Defense System Mounted on Boat. Ukrainian forces have made a major breakthrough in their air defense strategy, successfully intercepting and destroying a Russian Kh-59 cruise missile over the Black Sea with the newly deployed U.S. L3Harris VAMPIRE Surface-to-Air Missile (SAM) system mounted on a high-speed boat.  This marks the first operational use of the VAMPIRE SAM system to intercept a cruise missile, representing a significant leap forward in Ukraine's capability to counter advanced airborne threats.  The achievement was reported on January 25, 2025, via the X account of Clash Report.  Read News Russia - Ukraine War at this link ... Ukrainian forces fire with the US-supplied VAMPIRE SAM system from a high-speed boat, successfully intercepting a Russian Kh-59 cruise missile over the Black Sea in response to an airstrike threat. Screenshot from the video published on the Clash Report X acc...
Post a Comment
Click here to Read more »

Trump Inauguration Acts Have Been Announced!

The committee planning Trump’s inaugural ceremonies released a schedule Monday of four days of events centered around the Jan. 20th swearing-in ceremony, which Biden is planning to attend. “President Trump is dedicated to uniting the country through the strength, security, and opportunity of his America First agenda,” Steve Witkoff and Kelly Loeffler, the co-chairs of the inaugural committee, said in a statement. . . The Republican's Inauguration Day plans include tea at the White House, the swearing-in ceremony at the Capitol, a congressional luncheon, a parade on Pennsylvania Avenue and a trio of balls. Village People and Carrie Underwood to perform at Trump's inauguration events. . . Other inauguration ceremony performers will include two of the president-elect’s musical favorites, country singer Lee Greenwood and opera singer Christopher Macchio. Euronews.com 49 minutes ago Search inside image Village People and Carrie Underwood to perform at Trump's inauguration events...
Post a Comment
Click here to Read more »

Zelenskyy ‘a beggar and blackmailer’ – EU state’s PM

11 Jan, 2025 19:21 Home World News The Ukrainian leader needs to stop asking other people for money, Slovakia’s Robert Fico has said Vladimir Zelensky looks on during a joint press conference with European Council President Antonio Costa in Kiev, Ukraine, December 1, 2024  ©   Getty Images / Nikoletta Stoyanova ISNA News Agency 6 days ago Search inside image Slovakia's PM: Zelensky a beggar and blackmailer - ISNA Slovak Prime Minister Robert Fico has lashed out at Vladimir Zelensky, declaring that the Ukrainian leader’s  “begging and blackmailing”  needs  “to stop.”  Relations between Bratislava and Kiev soured when Ukraine cut off the flow of Russian gas earlier this month. “I’m not here to hold hands with Zelensky, and I’ll admit, I’m sick of him sometimes,”  Fico said at a meeting of the Slovak parliament’s foreign affairs committee on Friday. “He roams Europe begging and blackmailing, asking others for money,”  Fico continued, adding:...
Post a Comment
Click here to Read more »