SFIG and SIFMA Submit Amicus in Support of Midland’s Cert Petition to U.S. Supreme Court

Last Thursday, December 10th, SFIG and the Securities Industry and Financial Markets Association (“SIFMA”) submitted an amicus curiae brief, kindly drafted by Sidley Austin LLP, to the U.S. Supreme Court in support of Midland Funding requesting judicial review of Second Circuit Court of Appeals’ decision in Madden v. Midland Funding.

Madden chose to waive the right to file a brief in opposition to Midland’s cert petition. However, on December 14th, the U.S. Supreme Court ordered Madden to file a response, which is now due by January 13th. A vote on whether to grant review is expected in late February, though the U.S. Supreme Court could decide to move this back after all the briefs have been filed.

Midland’s original request for a rehearing by the Second Circuit that SFIG and SIFMA supported in June was denied.

The outcome of Madden v. Midland has far-reaching implications for the securitization of consumer loans, including those funded through marketplace lending channels. If the Second Circuit’s decision is upheld, then industry participants would need to evaluate the applicability of state usury laws for loans included in a securitization.

To learn more about SFIG’s amicus curiae review process, please contact Alyssa.Acevedo@sfindustry.org.

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