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.

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

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.

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

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. 

 

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.