Student Loan Trust to Ask for Third Circuit Opinion in CFPB Suit

A federal appeals court will have the chance to determine whether the CFPB can sue securitization trusts for problems with servicing of their underlying loans in a case involving hundreds of thousands of student loans.

Judge Stephanos Bibas of the U.S. District Court for the District of Delaware on Friday said that he wanted the Third Circuit to weigh in on a pair of questions that will determine whether the Consumer Financial Protection Bureau’s ability to sue the National Collegiate Master Student Loan Trust. Bibas had previously ruled that the CFPB had the power to do so, and the trust ...