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SFA News

SFA Submits Amicus Brief in Valid-When-Made Litigation

SFA filed an amicus brief supporting the OCC‘s valid-when-made rule, providing the court with the perspective of our members and industry participants on the importance of the doctrine for liquidity in lending markets, availability of credit to consumers and businesses, and bank safety and soundness.

SFA News

SFA Responds to FIMSAC Recommendations to Mitigate Conflicts of Interest in Credit Ratings

SFA’s response to the Fixed Income Market Structure Advisory Committee (FIMSAC) recommendation regarding ways to mitigate conflicts on interest in credit ratings focused on 1) enhanced issuer disclosure, 2) increased NRSRO disclosure, 3) bondholder ratification of issuer-selected NRSROs, and 4) our members’ general comments around potential conflicts of interest.

SFA News

Shareholders and PSPAs: Summary of Collins v. Mnuchin Oral Arguments

On December 9, 2020, the Supreme Court heard oral arguments in Collins v. Mnuchin, which arose out of litigation initiated by GSE equity arguing that the Third Amendment to the Preferred Stock Purchase Agreements—which govern the terms of the 2008 bailout of the GSEs—should be vacated due to the unconstitutional structure of the FHFA.

Industry News

OCC Finalizes True Lender Rule

On Tuesday, October 27, the Office of the Comptroller of the Currency (OCC) issued its final rule that determines when a national bank or federal savings association makes a loan and is the ‘true lender,’ including in the context of a partnership between a bank and a third party.

SFA News

Court Grants Motion to Dismiss Cohen V. Capital One Case Structured

On Monday, September 28, the U.S. District Court for the Eastern District of New York granted the defendants’ motion to dismiss in the Cohen v. Capital One case.

SFA News

Court Grants Motion To Dismiss Petersen V. Chase Case

On Monday, September 21, the U.S. District Court for the Western District of New York granted the defendants' motion to dismiss in the Petersen v. Chase case following a magistrate’s recommendation to dismiss the case in January.

Industry News

Delaware Chancery Court Ruling Limits National Collegiate Founder Clout

Last Thursday, August 27, Vice Chancellor Joseph R. Slights III of the Court of Chancery for the State of Delaware ruled that a private equity founder has little control and no benefit in control of over $15 billion in student loan securitizations in the consolidated litigation related to the case of CFPB v. National Collegiate Student Loan Master Trusts

Industry News

Colorado ‘True Lender’ Litigation Settled

On Tuesday, August 18, the parties to the litigation by the Attorney General of Colorado, as Administrator of the Colorado Uniform Consumer Credit Code, against Avant and Marlette have agreed to settle the litigation

Industry News

Colorado Court Upholds OCC’s Rule on Valid-When-Made Loans

On Thursday, August 13, a federal court in Colorado ruled that the OCC’s new rule on interest rates on bank-sold loans is valid, but remanded a bankrupt company’s dispute over the “true lender” of the loan.

Industry News

Court Rules in Favor of Investors in Lehman “Flip Clause” Case

On August 11, the U.S. Court of Appeals for the Second Circuit decided that investors should keep roughly $1 billion received from various Lehman Brothers affiliates after the 2008 bankruptcy filing of Lehman Brothers Holdings, Inc. triggered the liquidation of dozens of collateralized debt obligations. The case centers on the treatment of so-called “flip clauses” in a securitization waterfall which redirect and reprioritize cash flows upon bankruptcy, and often are included in securitizations that include swaps. Citing SFA’s amicus brief to support its decision, the Second Circuit’s ruling affirmed the district court order dismissing Lehman’s complaint in its entirety.