A new report by the Federal Reserve Bank of New York shows that subprime auto loans from nonbank lenders have higher delinquency rates than banks; about 4.4 percent of subprime loans from banks are delinquent while 9.7 percent from nonbank lenders are delinquent; “This suggests that bank auto loans may have some additional layers of underwriting — credit score alone does not explain the gap and divergence in the delinquency rates,” the New York Fed report stated as reported by American Banker. Source.