Another subprime lender goes under - this is starting to remind me of something:
Auto dealers who lend money to buyers with spotty credit histories pushed subprime lender PrimaLend Capital Partners into bankruptcy, the company said in court papers.
Doesn’t seem to be the business to be in at the moment:
LendingTree reports 5.1% of Americans are now delinquent on auto loans, with 2% at least 30 days late and nearly 1% over 90 days late.
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Divitas,
This bankruptcy is entirely related to fraud involving counting the same collateral for multiple different securities. This is systemic and involves the creditors and the financing arm of the entities.
There is no abnormal stress in delinquency among car loans prime or other.
Read this. All of it.
AI-Powered Tricolor and its Mushroom Cloud of Fraud Allegations Are a Sign Greedy Lenders Closed their Eyes for Years, Not a Sign Consumers Are “Cracking” or Whatever | Wolf Street
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