Joseph Cioffi and James Serritella discuss the heavyweight fight brewing between federal and state authorities over whose rules should govern the servicing of student loans in their latest article published in Law360. In “Federal Vs. State: The Fight To Regulate Student Loans,” the authors note that the battle appears headed for the courts, where the outcome will likely depend upon judicial interpretation of the preemption doctrine. To read the full article, click here.
College students – prepare to be educated on a new case of Hobson’s choice, a term typically used to describe situations where there appears to be a choice available, but in reality, there is no choice at all. It’s named after a stable owner in England who rented out horses, but would only offer customers the horse nearest the stable door. But this time around, the concept is reflected in a proposed bill that would offer student loan borrowers debt elimination in exchange for delaying their Social Security qualifying age. Whether they take the deal or continue to repay their loans in full,…
New Tech, New Risks
There are always risks to forging a new path. When it comes to electric vehicles (EVs) like the Model S and Model X that back Tesla’s latest deal, there are peculiar risks beyond those that normally accompany auto asset-backed securities (ABS). Given a lack of historical data, there is the risk of uncertain residual or resale values, and moreover, the potential for those values to fall below expectations for any number of reasons. For example, new technology may emerge that leapfrogs the manufacturer’s current offering, or production start-up problems may prevent the manufacturer from fulfilling demand….
Joseph Cioffi recently sat down with William Hoffman, Associate Editor of Auto Finance News, for an episode of “The Roadmap,” a podcast from the Center for Auto Finance Excellence, a site dedicated to providing best practices for auto finance industry executives and investors. Joseph and William discussed trends apparent in recent subprime auto loan securitizations, and the outlook for the market going forward, including a close look at the interrelationships between credit enhancements, credit quality and credit ratings.
The discussion builds on Joseph’s thoughts first shared on a post on Credit Chronometer….
For all the talk about Dreamers in the national immigration debate, a recent research paper positing the positive effect of erasing the nation’s $1.3 trillion student debt burden has given the term new meaning. If someone could wave a magic wand and make student loan debt disappear, we would hear the collective cheers of student borrowers all the way to the moon. But rather than treat such an act like a fairy tale, a group of economists here on earth went about determining the kind of economic impact a massive cancellation of student debt would have. …