What 3rd Circ. Trust Ruling Means for Securitization Market

Reprinted from: Law360 | April 23, 2024

Cadwalader partners Mercedes Kelley Tunstall and Michael Gambro co-authored an article, “What 3rd Circ. Trust Ruling Means for Securitization Market,” which appeared in Law360.

On March 19, the U.S. Court of Appeals for the Third Circuit handed down a decision that statutory trusts used as issuing entities for securitizations are considered "covered persons" for purposes of the Consumer Financial Protection Act, in the long-running case of Consumer Financial Protection Bureau v. National Collegiate Master Student Loan Trusts. This article provides background on the underlying litigation, describes the court's analysis and identifies possible next steps in the litigation.

Cadwalader partners Cheryl Barnes, Sophie Cuthbertson, David Gingold, Stuart Goldstein and Andrew Karp contributed to this article.

Read it here