The U.S. economy seems to be humming along. Unemployment is at just 3.9 percent after hitting an 18-year low in May 2018, and real GDP is forecast to grow at 3.1 percent for 2018. While news about the economy and the stock market, which is just off record highs, seems to be getting all the headlines, there is another area that’s in record territory but getting almost no news. What’s seeing tremendous growth under the radar are auto asset-backed securities (ABS).
The sale of non-performing loan (NPL) assets – mortgages, student loans, car payments or otherwise – can be a sizable undertaking for any financial institution. These transactions can be in the hundreds of billions of dollars if not more. With that comes documents and more documents. In fact, these types of asset backed securities sales can require the analysis and management of millions of files. This is no small task and certainly it’s something that requires extensive planning and infrastructure that’s up to the task.