Securitized Student Loans: The Next Crisis?

Law360 (March 8, 2018, 4:45 PM EST) -- When the housing bubble burst during the 2007-08 economic meltdown, the ripple effect on residential mortgage-backed securities was profound. Hundreds of billions of dollars of residential mortgages had been bundled into securities and sold to investors at a premium on the assumption that “housing prices will always go up.” When the opposite occurred, and millions of Americans defaulted on their mortgages, the security holders were left with significantly impaired collateral. Myriad litigation ensued involving the banks that had extended the credit (in many cases, to borrowers...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.