On January 30, 2020, five federal financial regulatory agencies published the long awaited notice of proposed rulemaking (the “NPR”) to revise certain aspects of the Volcker Rule (Section 13 of the Bank Holding Company Act) with respect to the treatment
Retained Interest
An Analysis of Structured Finance, Financial Assets and Related Topics
The Mayer Brown blog covers a broad spectrum of legal topics with a focus on financial services, banking and finance, lending, and private credit. It provides analysis and updates on regulatory developments, litigation, and transactional issues affecting sectors such as capital markets, corporate and securities law, cybersecurity and data privacy, and international trade. The blog also addresses industry-specific matters including fintech, insurance, private equity, and infrastructure projects. Mayer Brown's insights include discussions on legislative changes, compliance requirements, and risk management strategies relevant to financial institutions, corporations, and investors globally.
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FDIC Adopts Changes to Securitization Safe Harbor Rule
Since its adoption in 2010, the Federal Deposit Insurance Corporation’s (the “FDIC”) securitization safe harbor rule, 12 C.F.R. § 360.6 (the “Rule”), which relates to the treatment of financial assets transferred in connection with a securitization or participation transaction, has…
Going Through Changes: Transitioning to a LIBOR-less World for Consumer Loans
It is widely anticipated that the London Interbank Offered Rate (“LIBOR”) will be discontinued in 2021. As LIBOR commonly is used as an index rate for both residential mortgage and consumer loans, its discontinuance has the potential to have a…
Bankruptcy trustee appeals Seventh Circuit’s ruling on sufficiency of UCC collateral description to US Supreme Court
Last October we highlighted an important ruling issued in September 2019 by the Seventh Circuit in the bankruptcy proceeding of In re I80 Equipment, LLC. The Circuit Court in that case reversed a decision from the lower bankruptcy court and…
Magistrate Judge Recommends Dismissal in Chase Issuance Trust Usury Lawsuit
A United States Magistrate Judge for the United States District Court, Western District of New York, today issued his report and recommendation on the defendants’ motion to dismiss in Petersen et al. v. Chase Card Funding, LLC et al., No.…
Executing a “co-sponsored” Securitization
A recent trend in the fintech space is what is being coined by market participants as a “co-sponsored” securitization. The transaction is usually structured such that the company will sell its assets in a whole loan sale flow arrangement between…
CFPB on QM — No DTI? Short-Lived Patch Extension?
According to the Mortgage Bankers Association, the Consumer Financial Protection Bureau intends to revise its Qualified Mortgage definition by moving away from a debt-to-income ratio threshold, and instead adopting a different test, such as one based on the loan’s pricing.…
Securitization: What to Expect in 2020
Happy New Year!
Like many of you, we have been tuning into the various predictions for ABS issuance in 2020 from the rating agencies, analysts and other market participants. Will this year bring “more of the same” for US ABS,…
Legal Update: regulatory technical standards on homogeneity for STS transactions published in official journal
The EU has, on 6 November 2019, published in the Official Journal a delegated regulation (the “Delegated Regulation”) supplementing the EU Securitisation Regulation (the “Securitisation Regulation”) with regard to regulatory technical standards (“RTS”) on the homogeneity of the underlying exposures…
US Interagency statement on the use of alternative data in credit underwriting
Today, the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Office of the Comptroller of the Currency (collectively, the Agencies) issued an Interagency…