When getting credit starts becoming easy, then that is often a signal that a top maybe near. I don’t think we are necessarily there yet, but when loans are easy to obtain and rates don’t factor in appropriate risk, that is a dangerous sign.

Today’s WSJ points to a step in that direction, the WSJ writes about new lenders jumping into the subprime market. But subprime borrowers no longer hold that title, one such lender called FreedomPlus calls them “emerging prime.” To Lending Club, they are “near prime.” Lending Club originally required credit scores above 660, but that has now dropped to 640.

Santander Consumer USA Holdings (SC), a leader in the subprime auto loan market, now will expand to personal loans. They have agreed to buy the lesser of $30m or 75% of Lending Club’s near-prime loans through July of next year, and $30m or 50% after that.

In today’s 10K, SC recorded a net-charge off ratio of 5.8% for 2013 compared to 5.5% for 2012.