Auto lending

As Truist Financial implements the strategy of Chief Executive Michael Lyons, the bank is dropping near-prime auto lending, a business that it says doesn't play to its strengths.

The Japanese automaker pulled its bid for an industrial lending arm following "an evaluation of the initiative's scope, timing and requirements" and a difficult fiscal year.

The agency says the subprime auto lender pledged the same car loans to several lenders and bond deals at once, leaving investors owed about $945 million.

New York Fed data shows a record $211 billion in car-loan originations during the second quarter. But median credit scores are falling, and delinquencies are rising, as lower-income consumers struggle to meet their obligations.

Until this quarter, car-loan delinquencies for the Detroit-based bank had been steadily dropping. But in the spring of 2026, that momentum showed signs of slowing.

Since Michael Rhodes became its CEO, Ally Financial has gotten bigger by thinking more narrowly. Instead of growing the company's web of businesses, the company has exited some sectors while doubling down on what Ally does best: auto lending.

The 90-day-plus delinquency rate on student loans hit 10.3% in the first quarter, and New York Fed researchers warn that a second wave of defaults could be coming. Evidence is mixed regarding the likely impact on other consumer-lending segments.

Nationwide, Americans are falling behind on their car loans. But among Ally Financial's customers, delinquencies fell during the first quarter.

The auto lender's earnings mostly surpassed expectations in the fourth quarter, but its financial outlook was dampened by its projection of a weaker labor market in 2026.

Credit unions hit new highs in membership, deposits and loans in 2025. But it was also a chaotic year for the industry's governing body, and the sector faced renewed attacks by banks.

The fintech IPO drought ended this year with several large public exits by firms such as Chime, Klarna and Circle.

Nine banks and lenders were impacted by the yearslong, $923 million fraud enterprise, according to an indictment of top Tricolor executives. The banks were not publicly named, but JPMorganChase, Fifth Third, Barclays, Louisiana-based Origin Bancorp and Texas-based Triumph Financial have said they would take write-downs.

The Wisconsin-based regional bank plans to acquire American National Corp. in an all-stock transaction valued at $604 million. It is Associated's first acquisition announcement since Andy Harmening became CEO in 2021.

The Consumer Financial Protection Bureau is considering a proposal to reduce its oversight of auto finance lenders, saying the benefits of supervision may not justify the "increased compliance burdens."

In a tough quarter for the auto industry, the Detroit-based lender posted earnings that sped past Wall Street's expectations.

The credit infrastructure and analytics company secured $35 million in a Series D funding round, led by Socium Ventures, the venture capital division at Cox Enterprises, to expand cash-flow underwriting into auto lending and personal loans.

JPMorganChase CEO Jamie Dimon said that his bank can improve its procedures to guard against fraud.

The Consumer Financial Protection Bureau received pointed pushback from banks in their public comments on a proposed rule that would slash the number of nonbanks being supervised in four key markets.

Triumph Financial took steps to guard and move scores of cars backing its $23 million loan to Tricolor Holdings after the subprime auto lender filed for bankruptcy last week.

Creditors of the subprime auto lender Tricolor, which filed to liquidate in bankruptcy this month, are staking their claims on the company's remaining assets.