The use of extensions on subprime auto ABS more than doubled in April on a monthly basis. The outlook for performance is uncertain with enhanced unemployment benefits set to end in July.

A federal judge in Delaware rejected the CFPB’s $19.1 million proposed consent decree with 15 student loan trusts because the law firm that signed on behalf of the defendants lacked authority.

The issue presents a potential conflict in securitization transactions because lenders typically take a borrower’s word on income reporting, according to two Federal Reserve economists.

The top two bank ABS investors — TD Bank and Charles Schwab — pared back their holdings in 1Q, but sizable increases at Bank of America and oth-ers boosted the industry’s total position in the market. (Includes two data charts.)

Investors in the ABS market are mostly staying on the sidelines waiting for the coronavirus volatility to play itself out. Meanwhile, some investors are focusing solely on AAA-rated assets.

Ratings analysts at Morningstar allegedly engaged in sales and marketing activities in 2015 and 2016, a big no-no.

The performance of ABS from marketplace lenders could take a harder hit from the pandemic than other types of MBS and ABS, said Fitch.

As the Federal Reserve works to get TALF up and running, industry participants hope more types of assets are added to the mix.

Some of the $659 billion of loans originated through the Paycheck Protection Program are eligible for sale in the secondary market, but it remains to be seen whether the loans will make it into ABS.