Lenders Wary of Feds' Scrutiny

August 11, 2014
Automotive News 
auto financing news
The U.S. Justice Department confirms that it has sent subpoenas to GM Financial and Santander Consumer USA -- the two largest issuers of securities based on subprime auto loans. This has left other subprime lenders to wonder what the agency is looking for and who might get a subpoena next.

Justice Department officials are seeking documents relating to the underwriting and securitization of subprime auto loans "since 2007." The agency seems to be focusing on subprime auto lenders "with regard to representations made in the context of securitizations," reports Ken Rojc, managing partner in charge of the auto finance group for Chicago law firm Nisen & Elliott.

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