Ford captive under SEC spotlight

Ford Motor Credit has revealed it is being investigated by the Securities and Exchange Commission (SEC) in connection with securitizing subprime auto loans, along with a number of other auto lenders.

In an SEC filing last week, the Ford captive said that in October 2014 Ford Credit received a “voluntary document request” from the SEC, in connection with the SEC’s investigation into “certain practices in subprime auto loan asset-backed securities (ABS).”

“The SEC informed Ford Credit that the request was made to a number of automotive finance companies as part of an industry-wide investigation, and Ford Credit is cooperating with the request,” Ford Credit said in the filing last week.

Ally Financial, CapitalOne, GM Financial, and Santander Consumer USA have made similar disclosures.

In a statement to investors, Ford Credit said: “It is not clear whether this or other regulatory activity, if applicable to Ford Credit, would not have an adverse impact on Ford Credit’s securitization programs or your notes.”