The OCC wants banks to be aware of risks arising from auto lending, home equity lines of credit and sales of bad debt, Deputy Comptroller Darrin Benhart said at an industry conference in Las Vegas.
Competitive pressure is driving higher risk in car loans, Benhart said, adding that rising risk is quantified in the higher loan-to-value ratio of car loans and an average charge-off that is 12% higher than the year before. Benhart also warned about the risks associated with the end-of-draw periods on HELOCs taken out during the housing boom.
Benhart mentioned the OCC's guidance on sales of consumer debt: "In their work, OCC examiners will determine whether bank management has established controls and implemented a rigorous analytical process to identify, measure, monitor, and manage the risks associated with debt sales."
Read the speech.