NEW YORK - With rising unemployment and fluctuating gas prices resulting in higher U.S. auto loan delinquencies and losses, seller/servicers need to act quickly and adapt to the changing market trends in order to help minimize auto ABS losses, according to Fitch Ratings in a new report.

The broader market developments are an area that auto servicers are clearly monitoring and already taking steps to address, as observed through numerous on-site reviews by Fitch. Some companies are tightening origination and underwriting standards, hiring additional personnel, and testing and implementing enhanced collection strategies to improve recoveries and limit losses, according to Fitch director Howard Miller.

"The use of varying methods to enhance resale value of vehicle inventory is important to minimize losses," said Miller.

"The ability of auto seller/servicers to proactively manage their risk exposure within their portfolios is a critical component to the health and performance of auto trusts," said Fitch managing director Stephanie Petosa.