Record unemployment could drive the market toward litigation, mirroring the battles over loss allocations related to pre-financial crisis subprime mortgage-backed securities (RMBS), which continue to this day.
Above all else, the pandemic has shown us what happens when there’s a failure to plan. This webinar will empower participants with the knowledge of how nearly a decade of subprime RMBS litigation will likely be relied on by courts and litigants in subprime auto ABS disputes.
Highlights of the webinar include:
- Despite relative optimism in the market, there's a dark side to the subprime auto market. Reasons to be wary in this moment include record unemployment, high payments amounts and long loan terms. Preparation is key going forward.
- RMBS courts have created new laws and unique procedures for repurchase actions which would likely be applied in subprime auto repurchase actions. Participants should be prepared for issues relating to the "material adverse effect" standard, limitations on damages and deficient notices.
- Now is the moment for investors to evaluate their holdings, sponsors to review their practices and repurchase provisions and trustees to be receptive to investors' requests for information.
Speakers:
- Joseph Cioffi, Chair, Insolvency, Creditors' Rights and Financial Products
- Seiji Newman, Partner, Insolvency, Creditors' Rights and Financial Products
- Todd Krell, Managing Director, CrossCheck Compliance
