A Chicago-area car lender sold a $100 million subprime auto bond deal five years ago that the U.S. Securities and Exchange Commission now claims was “secretly stuffed” with “bad loans,” disguised to look better than they actually were, according a complaint filed by the regulator on Thursday.
A couple of months later, the bonds were the first subprime auto-loan securitization to be downgraded in the U.S. by credit-rating firms since the 2008 financial crisis. Investors scooped up its riskiest BB-, or “junk,” rated bonds at a coupon of 8.05%, according to Finsight data.
IRS_CI Employees and Contractors Destroyed Records of Tax Evasion for Auto Company TRN-2009-0433
Are you SERIOUSLY telling me no-one knew, when for years the 'nothing down', 'zero interest', 'credit score doesn't matter' US car industry has been called out! And I mean many FOR YEARS!!!! People predicted it would be the next 'sub-prime'. America? Car sales BOOMED.
Isn’t this what $cvna does on all loans?
Alternate Headline: Car lending guy figures out what home lending guys did in 2004-2007 and attempts to replicate it.
50% of car loans are Kinked
thanks