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Car Loans Tougher To Get, More People Getting Rejected By Lenders

shogun32

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But the consumer!! Easy credit, no money down, fraudulent loan origination. These are the key and necessary ingredients to a booming economy and the wealth effect needed to ensure incumbents winning the election.
 

XFactor7889

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Good news for the medium to long-term for sure. But in the short term, this definitely suggests a bumpy road is still ahead (which is to be expected, of course).
 

XFactor7889

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This is great news! We don't need a repeat of 2008.
🤞that's been the hope, right? The severe delinquency rate being the highest since 2006 definitely means we're not out of the woods just yet, though.
 

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Balr14

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The biggest reason for 2008 was the lack of regulations on banks that allowed them to roll poor quality, unsecured loans in with good loans and sell them as an investment package. It supposedly limited the risk and meant huge profits for investment banks. That didn't turn out so good. I lost a couple pretty good bank clients because of that. It can't happen again under current regulations.
 

Inthehighdesert

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I don’t get how any one can think what the fed is doing is good or ok. The article itself is inaccurate. It stated sub prime auto loans are 6.5. That‘s complete .. . Credit union rates are 6.5-6.9 for good credit. I’m not going to bother debunking the other stats quoted. That in itself isn’t a big deal or actually high really. People just got spoiled with 3 percent loans. Basic monetary policy needs about a year to see what the affects are, not literal weeks with how the fed has been jacking rates. There not slowing down on writing auto loans here at all, or loans in general for that matter. Who I deal with for my business on a regular basis is always telling me how there behind on processing. It’s a shell game to a point. And who’s getting the short end is the middle class with this stuff.
 
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Hack

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The biggest reason for 2008 was the lack of regulations on banks that allowed them to roll poor quality, unsecured loans in with good loans and sell them as an investment package. It supposedly limited the risk and meant huge profits for investment banks. That didn't turn out so good. I lost a couple pretty good bank clients because of that. It can't happen again under current regulations.
Maybe I'm confused about this, but I thought there were regulations that actually forced banks to make bad loans during that time. I don't think the banks were to blame.
 
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Bikeman315

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Maybe I'm confused about this, but I thought there were regulations that actually forced banks to make bad loans during that time. I don't think the banks were to blame.
Oh they most certainly were. Along with the politicians that kills the regs that might have prevented it.
 

Balr14

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Maybe I'm confused about this, but I thought there were regulations that actually forced banks to make bad loans during that time. I don't think the banks were to blame.
Regulations were intended to make it easier for low income families to get mortgages. Investment banks found a way to turn this into huge profits while limiting their risks. Bank regulations have to be very tight or Wall Street bankers will find a loophole that enriches them at your expense.
 

Hack

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Oh they most certainly were. Along with the politicians that kills the regs that might have prevented it.
I know there was funny business with the investments that banks were issuing, and I blame poor bank management for that. So I do agree some amount with what you are saying.

Regulations were intended to make it easier for low income families to get mortgages. Investment banks found a way to turn this into huge profits while limiting their risks. Bank regulations have to be very tight or Wall Street bankers will find a loophole that enriches them at your expense.
I think a few large banks actually failed and were bailed out by dubya. Maybe the bailouts are the profits you are talking about? Failing is definitely not the same as huge profits, correct?

Any banks that made money were actually well-managed and their loans must have been lower risk in some way, right?
 

Hack

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Every single one of them would have failed if not for the bailouts.
I thought 2008 was more about sub prime lenders and hedge fund investment firms, not banks.

High interest rates hurt the banks and help the people.
High interest rates hurt most everyone. They hurt people that save and people that want to buy. They hurt businesses for multiple reasons but one is that if people don't buy then businesses don't do very well.
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