CFPB Issues Final Rule Governing Non-Bank Auto Lenders

This week, the CFPB issued a long-anticipated final rule under which it will, for the first time, allow the Bureau to supervise non-bank auto finance companies.  Although the Bureau currently supervises the auto financing activities of banks and credit unions, the new rule will define as "larger participants" in the "automobile financing" market any non-bank company that has at least 10,000 "annual originations" of consumer auto finance products, including auto loans, refinancings, and leases.  According to the CFPB, this definition includes 34 of the nation's largest non-bank auto finance companies, which together originates approximately 90% of non-bank auto loans and leases in the United States.