Securitization Groups Stress the Importance of Federal Preemption for Nonbank Participants in MBS and ABS
July 10, 2015
A number of trade groups that represent firms involved in the securitization market are pushing for an appeal to be heard in a case that has significant implications for the MBS and ABS markets. A ruling in May by the Second Circuit Court of Appeals in Madden v. Midland Funding determined that nonbanks shouldn’t receive the federal preemption of state law that has been allotted to banks under the National Bank Act. “The outcome of the case would significantly impair...