CFPB lawsuit, potential rating downgrades add to NCSLT struggles
National Collegiate Student Loan Trust (NCSLT), a private student loan trust, could see a swathe of downgrades from Fitch across at least 12 ABS transactions, following a proposed consent judgment filed by the Consumer Financial Protection Bureau (CFPB) last week.
Fitch placed 17 tranches across 12 NCSLT transactions issued from 2003 to 2007 on Ratings Watch Negative on Monday, because a CFPB lawsuit could divert cash otherwise paid to ABS note holders. NCSLT trusts have 14 securitizations totaling $6.7bn outstanding, according to data from JP Morgan.
“The proposed consent
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