The European Supervisory Authorities (the “ESAs”) have published an opinion on 25 March 2021 entitled “ESAs’ Opinion to the European Commission on the Jurisdictional Scope of Application of the Securitisation Regulation” (the “Opinion”). The Opinion, which is addressed to the
Retained Interest
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Illinois Imposes Strict 36% Usury Cap for a Range of Consumer Finance Products and Providers
On March 23, 2021, Illinois Governor JB Pritzker signed into law Senate Bill 1792, enacting the Predatory Loan Prevention Act (PLPA) and capping interest at an “all-in” 36% APR (similar to the Military Lending Act’s MAPR) for a variety of…
Amendments to the EU Securitisation Regulation – the new synthetic STS framework and adjustments in relation to non-performing exposures
Two regulations amending the EU Securitisation Regulation and the Capital Requirements Regulation (the “CRR”) respectively have now come into force. Regulation (EU) 2021/557 of the European Parliament and of the Council (the “SR Amendment Regulation”) and Regulation (EU) 2021/558 of…
Congress Prepares to Invalidate OCC’s True Lender Rule
On Thursday (March 26, 2021), Senator Chris Van Hollen (D-MD) introduced a Congressional Review Act (CRA) resolution of disapproval to invalidate the Office of the Comptroller of the Currency’s (OCC) true lender rule. The resolution is co-sponsored by Senate Banking…
NY Expands Coverage of Recently Enacted Commercial Financing Disclosure Law
As expected, New York has broadened the reach of its new commercial financing disclosure law less than two months after its enactment. S.B. 5470 imposed a range of Truth in Lending-like disclosure requirements on a variety of commercial financing transactions.…
Irrevocable Payment Undertakings and Buyer-Led Supply Chain Finance; Mass Confusion Abounds
Many supply chain finance programs are structured on what is called a “buyer-led” or “buyer-focused” basis. In certain of these types of programs, although the bank or other financier providing the program (the “Finance Provider”) may purchase accounts receivable represented…
Legal Update: NY Enacts TILA-Like Disclosure Law for Business Loans and Purchases of Receivables (Factors, MCA Providers, Fintechs, Commercial Lenders—Take Note)
In late December 2020, New York Governor Andrew Cuomo signed S.B. 5470 into law, which will impose a range of Truth in Lending Act-like disclosure requirements on providers of commercial financing in amounts of $500,000 or less. The law will…
State Prudential Standards for Mortgage Servicers: “Ahead of the Curve” or “Dead Man’s Curve”?
I was only 9 years old when Jan and Dean in 1963 released their hit song “Dead Man’s Curve.” I thought about this song when I read the Conference of State Bank Supervisors’ (“CSBS”) Proposed Regulatory Prudential Standards for Nonbank…
CFPB Issues New QM Definition and Seasoning Provisions
The Consumer Financial Protection Bureau (“CFPB”) issued two relatively welcome surprises yesterday. First, along with ditching a debt-to-income ratio (“DTI”) ceiling, the agency expanded its proposed general Qualified Mortgage (“QM”) to include loans up to 2.25 percentage points over the…
Structured Finance Bulletin
In this Winter 2020 edition of our Structured Finance Bulletin, we provide updates on recent legal and regulatory developments in the consumer loan space as well asthe latest on the transition from LIBOR.
We also analyze the Federal Housing Agencies and…