Cadwalader Reviews Securitization Litigation and Regulation for 2019

There were significant developments in 2019 as courts continued to issue important decisions in this space and significant legislation impacting the residential mortgage-backed securities (“RMBS”) market came into effect.  A number of cases have called into question firmly rooted practices in the securitization market.  In two actions commenced over the summer in New York federal courts, Petersen v. Chase Card Funding, LLC[1] and Cohen v. Capital One Funding, LLC,[2] credit card holders claimed that their loans became usurious in violation of state usury laws once they were securitized.  While federal law permits the originating national banks to … Read more