CUs, Auto Dealers Must Work Together Closely To Get A Handle On New Lending Regulations
LAKE SUCCESS, N.Y.-It may be 2013 before real clarity comes to the compliance space, according to one observer, particularly for auto loans.
That's according to Robert Granados, vice president and general manager of finance solutions at DealerTrack, who said he believes it's going to take until some time in 2013 for all of the confusion surrounding the new lending regulations to abate.
"There is a lot of confusion, given the multitude of regulatory bodies and the ever-evolving rules coming out, as to what is the responsibility of the credit union [as a lender] versus what's really and truly the responsibility of the dealer. And, as you can imagine, the interpretation by the lawyers representing credit unions and other lenders is slightly different than that of the dealers' attorneys."
Granados pointed out that consumers, lenders and dealers will find a way to navigate the new compliance requirements, "but during that period while we're adjusting, it's painful."
He added that "what's difficult about this period today versus what we've faced in other times is that not only is there the belief right now that there's a tremendous amount of regulation, but it's still coming at us. It's happening much faster than a lot of us were used to, it's coming at us left and right, and we still don't know what the light at the end of the tunnel is."
One way he suggested easing the burden was for both lenders and dealers to work doubly hard to clarify the new regs and understand each party's responsibility. He added that it is critical for lenders to be sure they align themselves with dealers who "get it" and have their own compliance covered.