Overview

• The trustee asked the Dallas bankruptcy court to place roughly 100,000 loans under supervision and to authorize Vervent to keep servicing as up to 100,000 borrowers seek payment guidance, with approval still pending Friday.
• An emergency hearing addressed giving Vervent control over loan servicing and vehicle inventory, and creditors disputed who would pay to secure and consolidate the cars.
• Triumph Financial began towing and guarding vehicles tied to its $60.5 million facility before the trustee requested that the bank stop moving inventory.
• The Justice Department is conducting two parallel probes as lenders cite irregularities, including Fifth Third’s claim that the master loan tape was corrupted and concerns about potential double‑pledging of collateral.
• Banks and investors are preparing for sizable losses, with Fifth Third estimating about $200 million, possible larger losses at JPMorgan, and smaller lenders reclassifying exposures even as some loans continue to perform.