Subprime Auto Lender Checked Income on Just 3% of Loans in Bond

The video discusses the practices of Santander, a major US subprime auto finance company, highlighting a Moody's study that found only 3% of borrower incomes were verified in a $1 billion bond deal. This raises concerns about creditworthiness and potential delinquencies. The video also examines the growth of auto debt, which has nearly doubled since 2011, and the rise in delinquencies despite a strong job market. The lack of income verification by Santander could lead to increased delinquencies in the future.

How has the job market affected delinquencies in auto loans?

What does the data suggest about the quality of auto loans underwritten by Santander?