Security National Auto Acceptance Corp. (SNAAC), an auto lender that specialized in lending to individuals who are in the military and armed services, announced it will exit the auto finance business.
The company plans to stop originating loans next week and will plan to liquidate its portfolio as it completely exits the industry.
“While SNAAC’s portfolio continues to outperform the industry with declining delinquency and losses, due to diminished profitable growth opportunities within SNAAC’s key market segment, SNAAC’s board of directors has elected to wind down SNAAC’s operations and cease purchasing contracts,” the company said in a press release announcing the decision. “The risk-adjusted returns in today’s market do not meet the thresholds SNAAC had set to ensure profitable and sustained growth which led us to this decision.”
SNAAC will service loans through mid-September, at which time it will hire a third party to service the loans while the portfolio is liquidated. SNAAC did business in 30 states and had been in the auto finance business for more than three decades.
The lender had began an “aggressive” expansion plan back in 2016, expanding into a number of new markets. In 2015, the company was the subject of a consent order and $3.3 million fine from the Consumer Financial Protection Bureau, accused of engaging in illegal collection activities. Two years later, the company was fined an additional $1 million for being found to have violated that consent order.