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The name on its exterior and the dominance of Broad loans could discourage other major collectors from giving.
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The attorney general of Nevada is accusing Bank of America of repeatedly violating a broad loan modification agreement it struck with state officials in October 2008 and is seeking to rip up the deal so that the state can proceed with a suit against the bank over allegations of deceptive lending, marketing and loan servicing practices.
Under the terms of the proposed deal under discussion, the government would apply the fines toward an expanded relief program for troubled homeowners, while focusing on broad loan forgiveness.
A group known as the "Corinthian 100" was scheduled to meet Monday with the Department of Education, but they canceled the meeting because of concerns that the department would pursue student debt relief on a case-by-base basis instead of offering more broad loan discharges.
The e-mails, though, do provide new evidence of a concern by lawmakers that the broader loan guarantee program might be troubled.
But the focus on student loans should shelter Fynanz in comparison to other P2P startups with a broader loan portfolio (Student loans tend to have lower default rates than most consumer loans).
Over time, the term evolved (especially in the housing industry) to refer to a loan that was made and would be repaid as it was securitized and bundled into a broader loan portfolio that is sold in the secondary market.
Done properly, a broad brush loan modification could freeze the introductory rates on an estimated 500,000 loans.
The Wall Street Journal today published an op-ed arguing against providing broad student loan debt relief for people who were deceived by their colleges.
The new center-right government also has placed conditions on its role in a broader emergency loan facility for the entire euro area.
If investors balk at broad-based loan modifications, Mr. Paulson, who has opposed bankruptcy reform in the past, should support it for defaulting homeowners.
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CEO of Professional Science Editing for Scientists @ prosciediting.com