Securities and insurance trade groups are concerned about a proposed update to standards from the National Association of Insurance Commissioners, which has oversight of MBS and ABS investments.

McGlinchey Stafford attorney Jim Sandy said in an interview with Inside the CFPB that potential defenses against enforcement actions and private litigation have begun to emerge.

The Consumer Financial Services Association of America said courts have “ample means” to protect the mortgage market if the CFPB is found to be unconstitutional.

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.

The Consumer Financial Protection Bureau’s funding structure is unconstitutional, a bevy of new amicus briefs argue. But they part ways on how to remedy the problem.

American Bankers Association Senior Counsel Kathleen Ryan said that the statement's examples of abusive conduct were based on “unproved and untested allegations in enforcement actions,” not on caselaw.

Officials, who were authorized to speak on background only, said the CFPB is working to preserve streamlined modifications and enhance consumer protections against behaviors like dual tracking.

Other priorities for a planned proposed rule include reducing notice requirements and documentation burdens.

Consumer financial services trade groups offered their two cents to the CFPB on its April policy statement on abusive acts and practices, arguing the agency had failed to provide specific standards for abusive conduct. Further, they claimed, the current draft would create massive risks for financial institutions.

Complaints submitted to the CFPB regarding student loans declined in the first half of the year. Most complaints are focused on federal student loans, which were the subject of a recent Supreme Court ruling.