Wells Fargo is worried about the auto loan market
The move could help to cool down what's currently a red hot market.
One of the largest auto lenders in the country, Wells Fargo is also known for its good risk management - especially after avoiding most of the damage other banks faced from risky mortgage loans during the financial crisis.
Now, executives have decided to cap subprime auto loans - made to borrowers with poor credit ratings, often at unfavorable interest rates - at 10 percent of total car loans.
Though the subprime car loan market is tiny compared to the size of the subprime mortgage market before the financial crisis, the number of those loans has more than doubled in the years since the crisis, the Times reported. Repayment periods have ballooned to 84 months, and the loans have grown larger than the actual values of the cars.
Now let's see who follows Wells Fargo's lead.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market