Written by Kristi Leo, the Structured Finance Association’s Head of Investor Policy

This past Friday, the newly assigned judge in the CFPB v NCSLT case issued a favorable decision that granted all eight additional parties’ motions to intervene, according to a U.S. District Court opinion filed on October 19th. The eight parties include virtually every major party to the fifteen National Collegiate Student Loan Trusts (NCSLT): the administrator, indenture trustee, owner trustee, primary servicer, special servicer, a sub-servicer, a bond insurer and a group of noteholders, all of whom filed their applications for intervention over twelve months ago.

In addition to granting the parties’ motions, many litigators view various statements made in the decision as sympathetic to positions of the intervenors, which were also argued by SFIG in the amicus brief filed on behalf of the industry.

SFIG staff and members continue to actively meet with lawmakers and BCFP to express our concern that the CFPB’s treatment of the Trusts in the proposed consent order will upend the intent of the transaction documents and reasonable expectations of market participants. For questions, please contact Kristi Leo, the Structured Finance Association’s Head of Investor Policy.