The recent anti-arbitration announcement from the CFPB would create risks for consumer lenders and related asset-backed securities, according to a report from Moody’s Investors Service. Specifically, the bureau indicated it is contemplating instituting a ban on provisions in financial contracts that prohibit consumers from participating in class-action litigation. The agency is also considering whether to mandate that companies that include such arbitration clauses regularly submit to the CFPB information related to arbitration proceedings, possibly for release to the public. Such changes could end up driving more class-action litigation against lenders and servicers, a number of which play essential roles in the securitization process, analysts at Moody’s said. “The proposals, if adopted, would affect financial products including credit cards, automobile loans, ...