A predatory lending practice in the mortgage industry outlawed by the financial reform bill escaped regulation in the auto lending industry. “Dealer reserve” is a legal practice similar to yield spread premiums; the practice of steering borrowers toward more expensive loans in exchange for a kickback. Although yield spread premiums are now illegal, dealer reserve Read on! →


The Hill blog reports that 62 House Democrats are urging lawmakers to pursue an auto dealer exemption in light of upcoming financial reforms being considered by the Consumer Financial Protection Agency (CFPA). The movement, organized by New York Reps. Bill Owens and Mike McMahon, goes against the wishes of the White House, Defense Department and Read on! →