(MENAFN) As legislators are sending warning signals, losses from auto loans are growing and rivals are rising more cautious after years of solid comebacks, the Bank of America is making a huge and bold push into auto lending.
Additionally, the institute is preparing to sell auto loans alongside other products such as checking accounts and home equity loans, amid its solid assertion that there's still room for growth from borrowers who have good credit.
According to the Federal Deposit Insurance Corp, industry-wide, banks classified USD1.1 billion worth of auto loans as uncollectible over the Apr-June period, which is up 15 percent from last year's corresponding timeframe.
However, many top experts see that the 2nd-largest US bank by assets is late to the auto loans party, as its board team was too busy trying to resolve mortgage-related issues when the auto lending business seemed like a smarter bet.
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