Anaheim, California-based Gateway One Lending & Finance, the indirect auto finance company subsidiary of Wayzata, Minnesota-based TCF National Bank, has announced that it will be selling loan assets and outsourcing servicing activities. As a result, the company will be closing its Anaheim, California office in April 2020 and laying off 137 employees, representing its entire California staff. The decision was driven by the sale of $1.1 billion of the company’s loan assets to Santander Consumer USA Holdings, including the conversion of an additional $500 million in loan assets that Santander will sub-service for Gateway One. At the time of the 2019 transaction, Santander’s president and CEO Mahesh Aditya noted, “Santander Consumer USA has demonstrated its ability over many years to partner with other large, and well-regarded financial institutions to leverage our best-in-class servicing platform.” According to Santander’s CFO Fahmi Karam, “We are excited to announce this transaction with Gateway One as it aligns with two of our key priorities, to be opportunistic on portfolio acquisitions and to leverage our servicing platform to drive fee income. This transaction is another example of the value we can provide to third parties when partially or completely outsourcing their servicing needs. We are continuously identifying and evaluating strategic ways to deploy capital that are accretive to our business and add shareholder value.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
