July 13, 2015


  • Rapid auto loan growth in a competitive market is almost always a sign of higher credit risk. When loans grow 30% plus in a competitive market it means that something is radically different in either how loans are priced or underwritten. Auto lending is very competitive with many banks and credit unions competing for the same loan. A slow and steady growth is a better sign that the growth is due to something other than high risk pricing and underwriting.
    Henry Wirz