Almost 12 years after the commencement of the Lehman Brothers bankruptcy case, we now know the answer to one of that case’s most interesting questions—namely, whether so-called “flip clauses” are protected settlement payments or void as ipso facto bankruptcy provisions.
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.
Latest from Retained Interest - Page 6
Ginnie Mae Restricts Long-Time Legitimate Business Activity of Mortgage Servicers
Ginnie Mae’s newly imposed restriction on repooling of reperforming forborne loans yet again penalizes servicers acting as essential service providers in the continuing efforts to protect mortgagors facing financial hardship due to COVID-19. In issuing APM-20-07 on June 29, 2020, Ginnie…
Recommendations for developing the EU securitisation market – Report by the High Level Forum on Capital Markets Union
A recent report, entitled “A New Vision for Europe’s Capital Markets” (the “Report”), sets out some key recommendations for how the EU securitisation market can be scaled up. The Report has been published by the High Level Forum on the…
Volcker Rule Revision Complete: Easing the Compliance Burden for Banks
On June 25, 2020, five federal financial regulatory agencies published the long awaited Final Revisions to the Volcker Rule (the “Final Revisions”) which revise certain aspects of the Volcker Rule (Section 13 of the Bank Holding Company Act) with respect…
Federal Housing Agencies and GSEs Announce Updates to COVID-19 Relief Measures for Mortgage Loan Borrowers
In recent weeks, the US federal housing agencies and government-sponsored enterprises (GSEs) that insure, guarantee, or purchase “federally backed mortgage loans” covered by Section 4022 of the CARES Act (Act) have continued their intense pace of issuing temporary measures, and…
CFPB Hatches a QM Proposal for GSE Patch
As rumored, the Consumer Financial Protection Bureau (“CFPB”) is proposing to revise its general qualified mortgage definition by adopting a loan pricing test. Specifically, under the proposal, a residential mortgage loan would not constitute a qualified mortgage (“QM”) if its…
Self-Employed Borrower’s Income – Is the Past Necessarily Prologue?
In a new era of double-digit unemployment resulting from the COVID-19 pandemic, it may be tough for a mortgage lender to predict the amount and stability of someone’s income in order to determine qualification for a home loan. Neither past
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Mortgage Servicers Are Getting the Short End of the Stick Under the CARES Act
Many of you have read about the power of the president to invoke the Defense Production Act to acquire products or direct the activities of suppliers based on a finding that it is necessary for the federal government to intrude…
CFPB Suffers Embarrassing Court Loss
By Ori Lev
The Consumer Financial Protection Bureau (“CFPB” or “Bureau”) suffered an embarrassing setback in federal district court earlier this week,
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EBA publishes its report on the creation of an STS framework for synthetic securitisations
The European Banking Authority (the “EBA”) has recently published its report on the feasibility of a framework for simple, transparent and standardised (“STS”) synthetic securitisations (the “EBA Report”). The EBA Report follows a discussion paper published by the EBA on…