Crypto-backed lending is re-emerging as a serious funding channel — but only if lenders can meet institutional standards around collateral control, servicing, and risk management. In this episode, Emily Barron, CEO and co-founder of Zaria, breaks down the operational and capital-markets infrastructure needed to bring crypto margin loans into warehouse lending and securitization.
What we cover:
• How crypto-backed lending works today (LTVs, liquidation mechanics, stablecoins)
• Why collateral segregation and custody infrastructure matter for institutional credit
• How to structure servicing, backup servicing, and key agent functions in digital asset lending
• Lessons from crypto winter, rehypothecation failures, and margin controls
• What it will take for banks, ABS investors, and regulators to support crypto-secured loans
In this episode of Consumer Credit Matters, host William Black talks with David Johnson (CEO) and Derek Gamble (CLO) of Vervent, the firm that stepped in as successor servicer following the Tricolor Auto bankruptcy.
They share what it takes for a backup servicer to become the front line in a lender collapse—managing data integrity, cash flow disruption, and investor communication—while highlighting what the case reveals about risk oversight in subprime auto ABS.
Topics include:
Vervent’s rapid mobilization as successor servicer
Coordination with trustees and warehouse lenders
How double-pledging and weak data controls can cripple a platform
What Tricolor’s failure signals for subprime auto
Listen, subscribe, and read more at https://www.consumercreditmatters.com
Summary:
In this episode of Consumer Credit Matters, William Black sits down with Sid Siddhartha (CEO, Intain) to discuss how AI and blockchain could help prevent issues like the alleged double-pledging at Tricolor Auto. They explore what went wrong, how real-time data could change collateral monitoring, and whether this moment could finally push the securitization industry toward modernization.
Chapters:
Chapters:
Intro
• The Tricolor Shock
• Lagging Data, Late Warnings
• The Double-Pledging Problem
• The Road to Adoption
• Conclusion and Final Thoughts
Takeaways:
The Tricolor bankruptcy reveals major vulnerabilities in consumer credit.
Double-pledging poses serious risk across warehouse and ABS financing.
AI can enable real-time collateral performance monitoring.
Blockchain offers immutable, auditable records to prevent duplication.
Lenders and trustees are beginning to pilot these solutions with FIS.
Regulatory shifts may accelerate technology adoption.
Sound Bites:
“We need early warning signals.”
“Double pledging is a big issue.”
“The technology is here and now.”
About the show:
Consumer Credit Matters is hosted by William Black, a structured-finance analyst and founder of Black Analytics LLC. The podcast features insights and interviews with industry leaders across consumer credit, securitization, and fintech innovation.
#Tricolor #AutoFinance #Blockchain #AI #Securitization #ConsumerCredit #Fintech #StructuredFinance #ABS #WilliamBlack #ConsumerCreditMatters #Intain #SidSiddhartha
In this episode of the Consumer Credit Matters podcast, host William Black and guest Rod Dubitsky (aka The People's Economist) discuss the recent Chapter 7 bankruptcy filing of Tricolor, a subprime auto lender. They explore the unique business model of Tricolor, the implications of fraud allegations, and the role of securitization and warehouse lending in the company's downfall. The conversation also touches on the broader implications for the subprime auto lending market and the economic pressures facing borrowers.
Chapters
00:00 Introduction to TriColor's Collapse
09:28 Straight to Chapter 7 Bankruptcy
12:24 Tricolor's Business Model
18:15 The Role of Securitization
31:40 The ABS ratings
44:29 Economic Headwinds or Immigration Policy?
57:22 The Role of the Backup Servicer
01:03:08 Social Bonds and ESG Considerations
01:08:08 Idiosyncratic vs. Systemic
In this episode of the Consumer Credit Matters podcast, host William Black interviews Peter Jasko, CEO and co-founder of Semeris, a company focused on enhancing the efficiency of reading and analyzing legal documents in the securitization market. They discuss the role of technology, particularly AI, in transforming document analysis, the challenges of accessing legal documents, and the expansion of Semeris into new asset classes. The conversation also touches on the competitive landscape, the evolution of legal documentation, and the future of private credit.
Chapters
00:00 Punching Through the Noise: Welcome to Semeris
04:45 Meet the Founder: Peter Jasko on the Origins of Semeris
10:16 Case Study: CLO Documentation Review Process
13:39 The AI Leap: Beyond NLP Frustrations
16:51 Analyst Augmentation and Operational Efficiency
18:25 How Semeris Stands Apart
23:15 Beyond CLOs: Semeris Goes Multi-Asset
41:17 Build or Buy?: Competing in the Legal AI Race
50:18 Complexity in Legal Documentation and Its Implications
56:53 What's in a Name: The Story Behind "Semeris"
In the structured finance world, there’s a quiet hero most folks overlook: the Backup Servicer. Until... they’re needed.In the latest episode of the Consumer Credit Matters Podcast, I sit down with Louis Geibel and Juliellen DeLuca from Vervent, one of the industry’s leading backup servicers. We go deep on a role that rarely makes headlines but becomes absolutely critical when the primary servicer falters. Think bankruptcies, fraud, or just plain old mismanagement.With cracks forming in several consumer asset classes—subprime auto, unsecured personal loans, even credit cards—this isn’t a theoretical exercise. Backup servicers are being called into action with increasing frequency.What actually happens after the default trigger is pulled? Who’s really prepared to step in and keep the payments flowing to bondholders? And what makes some “BUS” providers better than others?
In this episode of the Consumer Credit Matters podcast, host William Black engages with Sid, CEO of Intain, and Patrick Tadie, an advisory board member, to explore the transformative impact of AI and blockchain technology on structured finance. They discuss the challenges of adoption, the evolving role of trustees, and how Intain is uniquely positioned to enhance data integrity and automate processes within the industry. The conversation highlights the importance of education in embracing new technologies and the potential for significant changes in the regulatory landscape.
Intain is building digital infrastructure for structured finance. AI and blockchain are crucial for data integrity. The adoption of blockchain technology faces regulatory challenges. Trustees will be enhanced, not replaced, by technology. Education is essential for technology acceptance in finance. Intain's approach focuses on efficient intermediation. The future of finance is moving towards automation and digitization. Regulatory changes could accelerate the adoption of digital assets. Intain's technology can automate document verification processes.
00:00 Intro
01:54 Redefining Structured Finance with Technology
24:21 AI in Action: Automating Trust, Diligence, and Data
36:13 From Concept to Reality: How the Platform Works
48:47 The Regulatory Shift: What's Coming Next
Dr. Joseph Breeden thinks the industry is long overdue for a reset. In the latest episode of the Consumer Credit Matters podcast, we dig into what’s broken—and how to fix it.
With decades of experience developing models across mortgages, auto loans, and consumer credit, advising top financial institutions, and authoring books like Redesigning Credit Risk Modeling to Achieve Profit and Volatility Targets Joseph has seen firsthand where traditional models fall short—and what’s needed to bring them into the modern era.
In our conversation, we cover:
🔹 Why traditional credit models are failing in today’s volatile economy
🔹 The biggest blind spots in risk measurement today
🔹 His philosophy on modeling—what works, what doesn’t, and what needs to change
🔹 How AI, alternative data, and new methodologies could reshape risk assessment
If you work in lending, risk management, or structured finance, you won’t want to miss this one. The way we model risk is changing—are you keeping up?
In this episode of the Consumer Credit Matters podcast, I sat down with Steve Macy to dissect the Supreme Court's recent decision to deny certiorari in the CFPB vs. National Collegiate Student Loan Trust (NCSLT) case. For those in the structured finance world, this decision strikes at a cornerstone of securitization: the legal isolation of underlying assets.
The Third Circuit's ruling, now left standing, finds that securitization trusts can be considered "covered persons" under the Consumer Financial Protection Act (CFPA). This redefines the risk landscape for securitization entities, shaking long-held assumptions about the bankruptcy remoteness of trusts. The potential for direct liability introduces new complexities and costs across the securitization lifecycle.
In the episode, we explore the broad implications of this precedent. Here are some highlights:
Redefining Risk: Legal isolation, a bedrock principle, now faces erosion. Trusts could become entangled in lawsuits previously aimed only at servicers or other operating entities.
Practical Impacts: Increased risks may translate into higher costs for securitizations, affecting trustees, servicers, and ultimately, the cost of consumer credit.
Industry Response: Legal and structural adjustments, including tighter indemnification clauses and nuanced boilerplate language, will be critical. However, as Steve points out, these solutions may not fully insulate stakeholders from the decision’s ripple effects.
This case underscores a paradox: while aimed at protecting consumers, these changes might inadvertently increase financing costs, affecting affordability.
🚘 On this latest episode of the Consumer Credit Matters podcast, I'm joined once again by the ever-insightful Charlie O'Shea, an expert on the automotive market. Together, we dive deep into Carvana's recent Q3 earnings and discuss their remarkable comeback from the brink of bankruptcy just a couple of years ago. Charlie brings his unique perspective as we explore Carvana's operational efficiencies, their game-changing ADESA acquisition, and what this means for the broader automotive credit landscape. We also tackle key topics like the impact of falling used car prices, the debt restructuring challenges, and the evolving distribution and reconditioning strategy that could reshape the future of car buying. If you're a finance professional or have an interest in automotive credit markets, you won't want to miss this conversation. Tune in to hear why Carvana might just be the Amazon of auto retail and what challenges still lie ahead! 🚗💡 Charlie O'Shea is the founding leader of O'Shea Advisors and brings over three decades of expertise in consumer industries. With a proven track record of evaluating and opining on mergers/acquisitions, corporate strategy, and corporate governance, O'Shea Advisors have worked with some of the world’s largest corporations. They offer tailored, insightful strategies that help clients make informed decisions for long-term success. For more on O'Shea Advisors, please go to https://osheaadvisors.com.
In this conversation, Altin Kadareja, founder of Cardo AI, shares his journey from Albania to establishing a fintech company focused on asset-based credit. He discusses the challenges and opportunities in the private credit market, the integration of AI and technology in financial services, and the company's ambitions to enter the US market. The conversation highlights the importance of data management, the role of technology in enhancing decision-making, and the future trends in asset-based lending.
In this episode of the Consumer Credit Matters podcast, I'm sharing some key takeaways from the recent (August 7, 2024) Structured Finance Association's (SFA) Research Symposium, where I had the privilege of moderating a panel on the timely topic of AI in lending. During the panel, we delved into how AI is currently being used in credit decision-making, examining the ways regulatory frameworks influence its adoption. We also explored the roles of different regulators, the complexities of AI models, and what the future might hold for AI in lending. I want to extend a special thank you to Elen Callahan and the SFA for hosting this event and for inviting me to be part of such an insightful discussion. I’d also like to thank my fellow panelists - Dorothy Giobbe, Shafquat Rabbee, Peter McNally and Tom Pappalardo - for their valuable contributions. If you're interested in the intersection of AI and consumer credit, this episode provides a concise overview of our discussion.
Aaron Travis, CEO and co-founder of Karus, delves into his background and the inception of Karus, a pioneering tech solutions company for the auto sector. He details how Karus leverages data and predictive technologies to enhance auto lending for a diverse range of clients, including banks, credit unions, auto dealer groups, and specialty finance companies.
Karus adds significant value by refining underwriting decisions and optimizing lending programs. A notable achievement is their recent partnership with Intex, where they provide an advanced auto ABS forecasting tool on the Intex platform. Aaron also hints at the exciting potential for Karus to evolve into a balance sheet lender in the future.
The discussion navigates the complexities and challenges of integrating AI into underwriting, emphasizing the critical need for transparency and explainability in AI models to satisfy regulatory and compliance standards. Aaron touches on bias mitigation and the role of third-party AI companies in model validation.
Amidst the current economic landscape, the conversation addresses the funding hurdles faced by startups, stressing the importance of efficiency and alignment among employees, investors, and partners. The state of the credit environment, especially within the subprime sector, is scrutinized, underscoring the value of predictive technologies and the necessity for tailored credit scores for each transaction.
The podcast wraps up with Aaron offering invaluable advice for entrepreneurs, highlighting the importance of delivering monetizable value and maintaining a steadfast focus on customer needs.
Join me for an insightful discussion with consumer credit and capital markets veteran, Steve Linehan. Steve delivers a master class in leadership and career management, sharing his experiences from his time at the Federal Deposit Insurance Corporation (FDIC) , serving as treasurer of Capital One , and as CFO of Fair Square, a start-up credit card company that was later sold to Ally. Don't miss this opportunity to learn from Steve's extensive and candid journey.
Please join me for Ep. 6 of Consumer Credit Matters podcast featuring an engaging, reprise discussion with Bob Jankowitz. Jankowitz shares his expertise on the intersection of corporate and consumer credit, offering valuable insights into the current economic landscape, including “meta” topics such as AI, inflation and auto industry trends. His insights offer valuable perspective for anyone interested in understanding the current state and future trends of consumer credit. The Consumer Credit Matters podcast continues to deliver thought-provoking content with this latest episode. By bringing back expert guests like Jankowitz, the podcast offers listeners deep, nuanced discussions on the complex factors shaping the consumer credit landscape. As economic uncertainties persist and technological advancements reshape financial practices, such informed dialogues become increasingly valuable for professionals and consumers alike.
I'm excited to share the latest episode of my podcast "Consumer Credit Matters," where I delve into the complexities of the automotive market with none other than Charlie O'Shea. With over three decades of experience in the auto industry, Charlie offers an insightful discussion on the cultural and operational dynamics shaping automotive sales and finance today.
Hello and welcome to the fifth episode of the "Consumer Credit Matters" podcast. In this Guest Series, Stephen Macy, a distinguished legal expert in structured finance joins me to shed light on a recent landmark decision from the Third Circuit Court of Appeals, CFPB vs. National Collegiate Student Loan Trusts. This ruling may reshape how we think about the legal protections surrounding securitizations and could have far-reaching implications for consumer finance as a whole. We explore the specifics of the case, the surprising legal reasoning that has emerged, and what this could mean for the future of securitization. Steve walks us through the potential risks and repercussions of this decision, including how it might disrupt the fundamental aspects of the securitization market, increase borrowing costs for consumers, and challenge the legal framework that has long supported this critical sector of the economy. Whether you're a financial professional, a legal expert, or someone interested in the broader impacts of finance on everyday life, this episode is packed with valuable insights that you won’t want to miss. So, grab a seat, get comfortable, and let's dive into this essential conversation.
In the latest installment of my Guest Series on the Credit Card Matters podcast, I had the pleasure of diving deep into a topic that, while often overlooked, forms the backbone of our digital and financial infrastructures: data centers. My guest, Gerry Granovsky, a seasoned expert with over thirty years of experience in credit risk assessment within the technology, media, and telecom sectors, shared invaluable insights into the evolution, current state, and future of data centers.
In this keynote speech recap, William Black discusses the consumer credit paradox, where macroeconomic statistics show positive trends while consumer credit performance is poor. He highlights the record levels of consumer debt and the acceleration of debt levels due to increased spending and inflation. Black also examines the impact of the jobs market on credit performance, the tightening of underwriting standards, and the intersections of risk, including younger borrowers and subprime cohorts. He concludes by mentioning various topics covered in his Consumer Credit Matters newsletter.
In this episode, William Black and Bob Jankowitz discuss consumer credit and its impact on the economy. They explore the definition of consumer credit and its various categories, such as mortgages, credit cards, auto loans, and student loans. They also examine the current health of consumer credit, highlighting the paradoxical nature of the macroeconomic environment and consumer performance. They discuss the potential risks and vulnerabilities in the consumer credit market, including the impact of rising interest rates. They touch on the background and experiences of William Black, the sentiment of consumers in the current economic environment, and the issue of swipe fees. They also discuss the potential effects of new legislation on swipe fees and the role of rewards programs in the credit card industry.