OneMain Holdings
24 named things its latest annual report says its results depend on, each in the company's own words. 9 of them are also named by other companies we've read.
Customers
Nonprime consumers
earns from · $24.8 billion of finance receivablesnamed as a riskMoreover, our customers are primarily nonprime borrowers, who have historically been more likely to be affected, or more severely affected, by adverse macroeconomic conditions than prime borrowers.Risk factors (Item 1A)
Suppliers
Third-party vendors
depends onnamed as a riskWe rely on third-party vendors to provide products and services necessary to maintain day-to-day operations, including a portion of our information systems, communication, data management and transaction processing.Risk factors (Item 1A)
Partners and platforms
BrightWay credit card third-party bank partner
depends onIn addition, we offer BrightWay credit cards through a third-party bank partner from which we purchase the receivable balances.Business (Item 1)
Franchise and independent auto dealerships
depends onAuto finance includes automobile retail installment contracts originated at the point of purchase through a growing network of franchise and independent dealerships.Business (Item 1)
Other companies
Variable-rate funding
exposed to its price · $(35)named as a riskThis analysis focuses on our interest-rate-sensitive liabilities, which include variable-rate funding and fixed-rate liabilities maturing and are assumed to be replaced with a market-based rate in the next 12 months.Market risk (Item 7A)
Securitization markets
depends onnamed as a riskIf we are unable to complete additional securitization transactions or unsecured debt offerings on a timely basis or upon terms acceptable to us or otherwise access adequate sources of liquidity, our ability to fund our own operational requirements and satisfy financial obligations may be adversely affected.Risk factors (Item 1A)
Also named by ALLY
S&P, Moody's, and KBRA
named as a riskIf OMFC’s current ratings are downgraded, it will likely increase the interest rate that we would have to pay to raise money in the capital markets, making it more expensive for us to borrow money and adversely impacting our access to capital.Risk factors (Item 1A)
Foursight
Our national branch network has consistently proven to be a reliable distribution channel, and our addition of Foursight has expanded our network of auto dealerships.Business (Item 1)
Places
Geographic concentration of finance receivables
concentrated innamed as a riskAn economic downturn or catastrophic event that disproportionately affects certain geographic regions could materially and adversely affect our business, financial condition, and results of operations, including the performance of our finance receivables portfolio.Risk factors (Item 1A)
Hazards
Natural disasters
named as a riskAdditionally, events such as natural disasters, pandemic disease, cybersecurity breaches and other types of catastrophes, and prolonged economic downturns, could adversely affect our financial condition and results of operations.Risk factors (Item 1A)
Also named by ALLY
Commodities and inputs
Automobiles (loan collateral)
exposed to its pricenamed as a riskIf a borrower defaults on a finance receivable held directly by us, we will bear a risk of loss of principal to the extent of any deficiency between the value of the collateral, if any, and the outstanding principal and accrued but unpaid interest on the finance receivable, which could adversely affect our cash flows from operations.Risk factors (Item 1A)
Regulators
Texas Department of Insurance
subject to · 10%named as a riskTherefore, any person acquiring 10% or more of OMH's common stock may need the prior approval of the Texas insurance and/or licensing regulators, or a determination from such regulators that “control” has not been acquired, which could significantly delay or otherwise impede their ability to complete such purchase.Risk factors (Item 1A)
Consumer Financial Protection Bureau (CFPB)
subject tonamed as a riskThe CFPB currently exercises supervisory authority over the Company’s entire consumer lending business as a result of the Company’s status as a “larger participant” in the auto financing market.Risk factors (Item 1A)
Also named by ABNB, AFRM, ALLY, AN, AUB, AXP, BAC, CASH and 61 more
State attorneys general
subject tonamed as a riskState attorneys general have a variety of tools at their disposal to enforce state and federal consumer financial laws, including the ability to enforce the Dodd-Frank Act and regulations promulgated under the Dodd-Frank Act’s authority.Risk factors (Item 1A)
Canadian federal and provincial insurance regulators
subject toThe Canadian federal and provincial insurance regulators regulate and supervise the insurance made available to borrowers through a third-party Canadian lender.Business (Item 1)
Laws and programs
Dodd-Frank Act securitization risk retention rule
subject to · at least a 5% economic interestnamed as a riskThe Dodd-Frank Act requires, among other things, that a securitizer retain at least a 5% economic interest in the credit risk of the securitized assets; this requirement has reduced and will continue to reduce the amount of financing obtained from such transactions.Risk factors (Item 1A)
Dodd-Frank Act
subject tonamed as a riskThe Dodd-Frank Act and the related regulations increased oversight of financial services and products by the CFPB, and imposed restrictions on the allowable terms for certain consumer credit transactions.Risk factors (Item 1A)
Also named by AFL, AN, BGC, CNX, CPAY, EPD, EQT, FITB and 14 more
Gramm-Leach-Bliley Act (GLBA)
subject tonamed as a riskFor example, we are subject to the federal GLBA and the NYDFS Cybersecurity Regulation, which govern the collection, processing, sharing, storage, use, and protection of PII and other confidential information by financial institutions and require certain safeguards, controls, policies, and processes for protecting PII and other confidential information.Risk factors (Item 1A)
Also named by BR, CINF, EFX, FICO, FIS, FITB, ORI, PAYC and 4 more
Investment Company Act
subject tonamed as a riskIf we are deemed to be an investment company, we may attempt to seek exemptive relief from the SEC, which could impose significant costs on us.Risk factors (Item 1A)
Also named by AB
CFPB consent order (May 31, 2023)
subject tonamed as a riskIn this regard, on May 31, 2023, we entered into a consent order with the CFPB to resolve a previously disclosed investigation focused on certain refunding practices for optional insurance and membership plan products that were subsequently canceled by the consumer after purchase.Risk factors (Item 1A)
State interest rate caps on consumer loans
subject tonamed as a riskWe are subject to potential changes in federal and state law, which could lower the interest-rate limit that non-depository financial institutions may charge for consumer loans or on credit card balances, or could expand the definition of interest under federal and state law to include the cost of optional products, such as insurance.Risk factors (Item 1A)
Collateral protection insurance regulation
subject tonamed as a riskBecause our customers do not directly agree to the amount charged for collateral protection at the time it is purchased, regulators may in the future prohibit our insurance companies from providing this insurance to our lending operations.Risk factors (Item 1A)
Military Lending Act
subject tothe Military Lending Act (which, among other things, governs certain consumer lending to active-duty military servicemembers and their spouses and covered dependents, and limits the interest rate and certain fees, charges and premium they may be charged on certain loans);Business (Item 1)
Federal Trade Commission Safeguards Rule
subject toIn December 2021 and October 2023, the Federal Trade Commission published amendments to its Safeguards Rule that prescribe more specific administrative and technical requirements for a financial institution’s cybersecurity program.Business (Item 1)