An article co-authored by Cadwalader partners Mercedes Kelley Tunstall and Andrew Karp, "Third Circuit Finds Statutory Trusts Are Subject to CFPB Jurisdiction," was featured in Today's General Counsel.
In their coverage, "Statutory Trusts Subject To Consumer Financial Protection Bureau Jurisdiction," the publication notes a recent decision by the U.S. Court of Appeals for the Third Circuit involving the Consumer Financial Protection Bureau and the National Collegiate Master Student Loan Trust
that finds that statutory trusts used to handle securitizations are considered "covered persons" for purposes of the Consumer Financial Protection Act, making them subject to CFPB jurisdiction. "According to Cadwalader, the decision will potentially undermine the non-operating nature of the trusts used in consumer asset securitizations," they write. "Trusts could be treated as accountable to the Consumer Financial Protection Bureau, and possibly be liable to private litigants, as well as the states."
Read it here. The original article by Mercedes and Andrew, which appeared in the firm's financial regulation newsletter, Cabinet News and Views, can be found here.