Consumer Credit Matters

William Black
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Consumer Credit Matters

Welcome to the Consumer Credit Matters podcast, where we discuss and analyze the world of consumer credit, credit risk and finance!

  1. E14: Redesigning Credit Risk Modeling

    FEB 18

    E14: Redesigning Credit Risk Modeling

    Dr. Joseph Breeden thinks the industry is long overdue for a reset. In the latest episode of the Consumer Credit Matters podcast, we dig into what’s broken—and how to fix it. With decades of experience developing models across mortgages, auto loans, and consumer credit, advising top financial institutions, and authoring books like Redesigning Credit Risk Modeling to Achieve Profit and Volatility Targets Joseph has seen firsthand where traditional models fall short—and what’s needed to bring them into the modern era. In our conversation, we cover:🔹 Why traditional credit models are failing in today’s volatile economy🔹 The biggest blind spots in risk measurement today🔹 His philosophy on modeling—what works, what doesn’t, and what needs to change🔹 How AI, alternative data, and new methodologies could reshape risk assessment If you work in lending, risk management, or structured finance, you won’t want to miss this one. The way we model risk is changing—are you keeping up?

    1h 15m
  2. E13 Chipping Away at Securitization: Implications of the CFPB vs. NCSLT Decision

    JAN 24

    E13 Chipping Away at Securitization: Implications of the CFPB vs. NCSLT Decision

    In this episode of the Consumer Credit Matters podcast, I sat down with Steve Macy to dissect the Supreme Court's recent decision to deny certiorari in the CFPB vs. National Collegiate Student Loan Trust (NCSLT) case. For those in the structured finance world, this decision strikes at a cornerstone of securitization: the legal isolation of underlying assets. The Third Circuit's ruling, now left standing, finds that securitization trusts can be considered "covered persons" under the Consumer Financial Protection Act (CFPA). This redefines the risk landscape for securitization entities, shaking long-held assumptions about the bankruptcy remoteness of trusts. The potential for direct liability introduces new complexities and costs across the securitization lifecycle. In the episode, we explore the broad implications of this precedent. Here are some highlights: Redefining Risk: Legal isolation, a bedrock principle, now faces erosion. Trusts could become entangled in lawsuits previously aimed only at servicers or other operating entities. Practical Impacts: Increased risks may translate into higher costs for securitizations, affecting trustees, servicers, and ultimately, the cost of consumer credit. Industry Response: Legal and structural adjustments, including tighter indemnification clauses and nuanced boilerplate language, will be critical. However, as Steve points out, these solutions may not fully insulate stakeholders from the decision’s ripple effects. This case underscores a paradox: while aimed at protecting consumers, these changes might inadvertently increase financing costs, affecting affordability.

    32 min
  3. E11: Carvana's Comeback - Navigating Debt, Growth and the Future of Auto Retail

    11/01/2024

    E11: Carvana's Comeback - Navigating Debt, Growth and the Future of Auto Retail

    🚘 On this latest episode of the Consumer Credit Matters podcast, I'm joined once again by the ever-insightful Charlie O'Shea, an expert on the automotive market. Together, we dive deep into Carvana's recent Q3 earnings and discuss their remarkable comeback from the brink of bankruptcy just a couple of years ago. Charlie brings his unique perspective as we explore Carvana's operational efficiencies, their game-changing ADESA acquisition, and what this means for the broader automotive credit landscape. We also tackle key topics like the impact of falling used car prices, the debt restructuring challenges, and the evolving distribution and reconditioning strategy that could reshape the future of car buying. If you're a finance professional or have an interest in automotive credit markets, you won't want to miss this conversation. Tune in to hear why Carvana might just be the Amazon of auto retail and what challenges still lie ahead! 🚗💡 Charlie O'Shea is the founding leader of O'Shea Advisors and brings over three decades of expertise in consumer industries. With a proven track record of evaluating and opining on mergers/acquisitions, corporate strategy, and corporate governance, O'Shea Advisors have worked with some of the world’s largest corporations. They offer tailored, insightful strategies that help clients make informed decisions for long-term success. For more on O'Shea Advisors, please go to https://osheaadvisors.com.

    44 min
  4. E10: Cardo AI's US Push: Fintech Meets Credit

    10/23/2024

    E10: Cardo AI's US Push: Fintech Meets Credit

    In this conversation, Altin Kadareja, founder of Cardo AI, shares his journey from Albania to establishing a fintech company focused on asset-based credit. He discusses the challenges and opportunities in the private credit market, the integration of AI and technology in financial services, and the company's ambitions to enter the US market. The conversation highlights the importance of data management, the role of technology in enhancing decision-making, and the future trends in asset-based lending.

    1h 2m

  5. 08/15/2024

    E9: AI in Lending - An SFR Symposium Recap

    In this episode of the Consumer Credit Matters podcast, I'm sharing some key takeaways from the recent (August 7, 2024) Structured Finance Association's (SFA) Research Symposium, where I had the privilege of moderating a panel on the timely topic of AI in lending. During the panel, we delved into how AI is currently being used in credit decision-making, examining the ways regulatory frameworks influence its adoption. We also explored the roles of different regulators, the complexities of AI models, and what the future might hold for AI in lending. I want to extend a special thank you to Elen Callahan and the SFA for hosting this event and for inviting me to be part of such an insightful discussion. I’d also like to thank my fellow panelists - Dorothy Giobbe, Shafquat Rabbee, Peter McNally and Tom Pappalardo - for their valuable contributions. If you're interested in the intersection of AI and consumer credit, this episode provides a concise overview of our discussion.

    11 min
  6. E8: Behind the Wheel of Karus: Aaron Travis on Optimizing Auto Loans

    08/02/2024

    E8: Behind the Wheel of Karus: Aaron Travis on Optimizing Auto Loans

    Aaron Travis, CEO and co-founder of Karus, delves into his background and the inception of Karus, a pioneering tech solutions company for the auto sector. He details how Karus leverages data and predictive technologies to enhance auto lending for a diverse range of clients, including banks, credit unions, auto dealer groups, and specialty finance companies. Karus adds significant value by refining underwriting decisions and optimizing lending programs. A notable achievement is their recent partnership with Intex, where they provide an advanced auto ABS forecasting tool on the Intex platform. Aaron also hints at the exciting potential for Karus to evolve into a balance sheet lender in the future. The discussion navigates the complexities and challenges of integrating AI into underwriting, emphasizing the critical need for transparency and explainability in AI models to satisfy regulatory and compliance standards. Aaron touches on bias mitigation and the role of third-party AI companies in model validation. Amidst the current economic landscape, the conversation addresses the funding hurdles faced by startups, stressing the importance of efficiency and alignment among employees, investors, and partners. The state of the credit environment, especially within the subprime sector, is scrutinized, underscoring the value of predictive technologies and the necessity for tailored credit scores for each transaction. The podcast wraps up with Aaron offering invaluable advice for entrepreneurs, highlighting the importance of delivering monetizable value and maintaining a steadfast focus on customer needs.

    59 min
  7. E7: From Regulator to Innovator: Insights from Industry Veteran Steve Linehan

    07/19/2024

    E7: From Regulator to Innovator: Insights from Industry Veteran Steve Linehan

    Join me for an insightful discussion with consumer credit and capital markets veteran, Steve Linehan. Steve delivers a master class in leadership and career management, sharing his experiences from his time at the Federal Deposit Insurance Corporation (FDIC) , serving as treasurer of Capital One , and as CFO of Fair Square, a start-up credit card company that was later sold to Ally. Don't miss this opportunity to learn from Steve's extensive and candid journey.

    2h 46m
  8. E6: Corporate Credit Insights for the Consumer Sector with Bob Jankowitz

    07/11/2024

    E6: Corporate Credit Insights for the Consumer Sector with Bob Jankowitz

    Please join me for Ep. 6 of Consumer Credit Matters podcast featuring an engaging, reprise discussion with Bob Jankowitz. Jankowitz shares his expertise on the intersection of corporate and consumer credit, offering valuable insights into the current economic landscape, including “meta” topics such as AI, inflation and auto industry trends. His insights offer valuable perspective for anyone interested in understanding the current state and future trends of consumer credit. The Consumer Credit Matters podcast continues to deliver thought-provoking content with this latest episode. By bringing back expert guests like Jankowitz, the podcast offers listeners deep, nuanced discussions on the complex factors shaping the consumer credit landscape. As economic uncertainties persist and technological advancements reshape financial practices, such informed dialogues become increasingly valuable for professionals and consumers alike.

    1h 10m
See All (13)

About

Welcome to the Consumer Credit Matters podcast, where we discuss and analyze the world of consumer credit, credit risk and finance!

Information

  • Creator
    William Black
  • Years Active
    2024 - 2025
  • Episodes
    13
  • Rating
    Clean
  • Copyright
    © William Black
  • Show Website
    Consumer Credit Matters

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