The CFPB posted a blog article seeking input to build a new auto lending data set.
According to the post, there is currently $1.5 trillion in outstanding auto loan debt. This number represents approximately one-third of non-mortgage consumer debt and has doubled over the last ten years. Even though auto loans are the third-largest consumer credit category, much less data is available from the market. Current auto data is highly aggregated which limits participants’ ability to perform independent review. In addition, credit report data is not complete due to a lack of reporting from some auto lenders. The CFPB believes that the current lack of data prevents participants from identifying emerging risks and opportunities in auto lending. This lack of information could lead to negative consequences in the auto lending market for all participants.
Therefore, the CFPB determined a need to develop a new auto lending data set to evaluate the cause of auto loan trends and to increase general visibility into auto loan trends. To aid in its task, the CFPB is asking for input from stakeholders and the public as well.
For more information on the blog post, please click this link.