Usury has made quite a comeback from the dust heap of old law treatises to become a crucial concept that has shaped modern credit markets. It recently returned to public awareness in marketplace lending, where online lenders have avoided making loans in states comprising the Second Circuit, such as New York, due to an unfavorable usury decision. Now, light has been shed on subprime auto financing...
Joseph Cioffi discusses the heavyweight fight brewing between federal and state authorities over whose rules should govern the servicing of student loans in his 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...
Joseph Cioffi’s article, “Federal Vs. State: The Fight To Regulate Student Loans,” was published in Law360.
Joseph Cioffi was quoted in an Asset-Backed Alert article, “Lawyers Eye Student-Loan Servicers.”
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...
Joseph Cioffi was quoted in a Bloomberg article, “Subprime Auto Bonds Caught in Vise of Rising Costs, Bad Loans.”
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...
