Legal Actions

Hooters Whole-Business Deal Cancelled in Bankruptcy

bivey@imfpubs.com — Thu, 22 Jan 2026 15:41:56 -0500

In a first-of-its kind ruling, a bankruptcy court ordered a 2021 whole-business securitization from Hooters Restaurant Group to be cancelled and essentially re-issued.

Tricolor Leaders Charged With Fraud; ABS Falter

bivey@imfpubs.com — Thu, 18 Dec 2025 16:03:17 -0500

The DOJ has filed charges against four former Tricolor executives for defrauding finance providers and ABS investors by double-pledging collateral and manipulating collateral characteristics.

CFPB Drops Lawsuit Against Student Loan ABS

sclark@imfpubs.com — Thu, 08 May 2025 16:45:31 -0400

While the bureau seems to be stepping away from an enforcement focus within the ABS market, industry attorneys note that a Third Circuit decision is still binding.

ABS Market Sees Regulatory Reform Opportunities

bivey@imfpubs.com — Thu, 06 Mar 2025 16:08:57 -0500

The Trump administration is likely to take actions that will reduce regulation for the MBS and ABS markets. Industry participants are working to shape the actions while also staying nimble.

After SCOTUS Setback, NCSLT Settles With CFPB

sclark@imfpubs.com — Thu, 23 Jan 2025 16:04:04 -0500

The settlement comes after the Supreme Court refused to hear a case in which the Third Circuit found that NCSLT were a “covered person” under the Dodd-Frank Act and subject to the CFPB’s oversight.

Faulty Ratings Case Against Moody’s and S&P Dismissed

smanas@imfpubs.com — Thu, 19 Oct 2023 16:48:04 -0400

A lawsuit accusing Moody’s and S&P of fraud and negligent misrepresentation in rating auction rate securities in the runup to the 2008 crisis was dismissed by a New York court last week.

SEC Spares CLOs in Private Fund Adviser Rule

smanas@imfpubs.com — Thu, 07 Sep 2023 16:29:58 -0400

The final rule for private fund advisers addressed many concerns of CLO market watchers around compliance burdens. Separately, a federal appeals court held that syndicated term loans aren’t securities.

Supreme Court Decision to Have Limited Impact on Student Loan ABS

smanas@imfpubs.com — Thu, 13 Jul 2023 17:07:00 -0400

The federal government’s new income-driven repayment plan, introduced after the Supreme Court decision, should drive prepayments higher to the benefit of seasoned deals, rating services said.

Marketplace Lending ABS Unscathed by FDIC Consent Order

smanas@imfpubs.com — Thu, 11 May 2023 16:38:19 -0400

A Federal Deposit Insurance Corp. consent order against Cross River Bank, a partner in marketplace lending securitizations, won’t impact outstanding ratings on ABS, according to Kroll Bond Rating Agency.

Court Affirms ‘Valid-When-Made’ Rules of FDIC, OCC

smanas@imfpubs.com — Thu, 17 Feb 2022 16:37:10 -0500

Acting Comptroller of the Currency Michael Hsu said the OCC will continue to ensure banks are not used as a vehicle for "rent-a-charter" arrangements.

Ruling in Student Loan ABS Case Has Broad Legal Implications

smanas@imfpubs.com — Thu, 10 Feb 2022 16:02:50 -0500

The decision, in a case pitting the CFPB against a student loan securitization trust, opens up the defendants to enforcement actions brought under federal law.

Court Says CFPB Lawsuit Involving Student Loan ABS Can Proceed

smanas@imfpubs.com — Thu, 23 Dec 2021 13:03:00 -0500

The defendants said the case was not timely and the bureau’s allegations didn’t apply to them because of statutory wording. The judge, using dictionary definitions and SCOTUS precedent, rejected those claims.

New York Court Dismisses Usury Claims Against Chase

news@imfpubs.com — Thu, 08 Oct 2020 13:28:00 -0400

The ruling partially lifts the cloud surrounding a 2015 ruling over the valid-when-made doctrine, providing banks with legal arguments to defend their securitization trusts against state usury laws.

California Allows Electric Utilities to Securitize Undercollections

bivey@imfpubs.com — Thu, 24 Sep 2020 13:12:00 -0400

With revenue lower than expected due to the coronavirus pandemic, California is allowing electric utilities to use securitization to avoid sharp rate increases for customers.

Colorado Court Says Banks Cannot Pass Interest to Nonbanks

news@imfpubs.com — Thu, 18 Jun 2020 14:00:00 -0400

The court declined to consider updates on the so-called valid-when-made doctrine. But the ruling is still subject to reconsideration.

Court Rejects CFPB’s Settlement with Student Trusts

news@imfpubs.com — Thu, 11 Jun 2020 14:10:00 -0400

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.

Morningstar Settles Conflict-of-Interest Charges

bivey@imfpubs.com — Thu, 21 May 2020 15:20:00 -0400

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

Auto ABS Market Could See Wave of Putback Litigation

bivey@imfpubs.com — Thu, 02 Apr 2020 12:30:00 -0400

During the 2008 financial crisis, investors in non-agency MBS sought repurchases from issuers, citing faulty underwriting and disclosures. A similar surge in putbacks could be on the way for the auto ABS market.

Reforms Suggested to Attract Investors to Non-Agency MBS

bivey@imfpubs.com — Thu, 12 Mar 2020 13:00:00 -0400

A longer statute of limitation and increased disclosure requirements could help attract long-term investors in the MBS and ABS market, industry experts recommend.

Court Rules MBS Could be Subject to ERISA Standards

bivey@imfpubs.com — Tue, 09 Apr 2019 16:48:00 -0400

A recent court ruling in the case of Powell v. Ocwen Financial could significantly expand liability for non-agency MBS participants by subjecting MBS transactions to the Employee Retirement Income Security Act.

Legal Snag for LendingClub Consumer Loan ABS

news@imfpubs.com — Fri, 22 Mar 2019 00:00:00 -0400

LendingClub, which operates an online marketplace, recently issued its first consumer loan-backed ABS of the year. The loans were originated under a model that has been successfully challenged in certain courts, raising concerns from rating agencies.