© Can Stock Photo / AndreyPopov
Wells Fargo Auto continues to downsize its portfolio and, as a result, is seeing fewer delinquencies and losses, the company reported during its second-quarter earnings call today.
The banks automotive net-charge offs are 10.3% lower compared with the same period the year before while delinquencies are slightly down by 2.3% over the same period.
However, the overall decline in loans past due masks an uptick in late-term delinquencies. Loans 90 days or more past due increased 15.3% to $105 million.
Still, the delinquency rate is just a drop in the bucket for Wells Fargo’s $47.6 billion portfolio, which is down 18% year over year. The bank originated $4.4 billion auto loans during the quarter — down 3.3% year over year.
The more significant loss on the quarter was the banks $1 billion consent order with the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency. The bank was fined in part for allegations that it force-charged consumers for insurance they didn’t need and were already paying for from a third party.
As part of the order, Wells Fargo was assigned to submit a plan to the CFPB in June regarding how it would pay back consumers it had harmed. Wells Fargo declined to comment on the plan.