U.S. Appeals Court Blocks Biden-Era Student Debt-Relief Plan​​​

A U.S. appeals court ruled on Tuesday that Democratic former President Joe Biden's administration lacked authority to pursue a student debt-relief program designed to lower monthly payments for millions of borrowers and speed up loan forgiveness for some, Reuters reported. The St. Louis-based U.S. Court of Appeals for the Eighth Circuit sided with seven Republican-led states that sued to block the U.S. Education Department's program, whose future was already in doubt with President Donald Trump back in the White House. The three-judge panel held that the Education Department exceeded its authority by trying to use a Higher Education Act provision that allows for income-based loan repayment plans to adopt debt-forgiveness on the scale provided by Biden's Saving on a Valuable Education (SAVE) Plan. That program was designed to provide more generous terms than past income-based repayment plans, with monthly payments dropping for some borrowers to as low as $0. It also provided debt forgiveness for some smaller loans in as few as 10 years, compared to the 20- or 25-year timeline under earlier rules. Read more.

Slightly More Americans Apply for Unemployment Benefits Last Week, but Layoffs Remain Relatively Low​​​

Slightly more Americans applied for jobless benefits last week, but layoffs remained in the same recent healthy range, the Associated Press reported. The number of Americans filing for jobless benefits rose by 5,000 to 219,000 for the week ending Feb. 15, the Labor Department said Thursday. Analysts projected that 215,000 new applications would be filed. Weekly applications for jobless benefits are considered a proxy for layoffs. The four-week average, which evens out some of the week-to-week volatility, fell by 1,000 to 215,250. The total number of Americans receiving unemployment benefits for the week of Feb. 8 rose to 1.87 million, an increase of 24,000 from the previous week. Read more.

Subchapter V Experiences to Share? ABI Wants to Hear from You!

ABI is continuing its study of Subchapter V, and it needs your help! We are particularly interested in learning more about the real-world impact of Subchapter V. So our question is, do you have a story about a distressed business or creditor who has used or benefited from the subchapter? If so, could that case still happen under the lower debt cap for Subchapter V debtors? Any and all responses are welcome. Submit your story at https://abi.org/subvstories.
 

Fannie Mae Blames Multifamily Fraudsters in Part for Setting Aside $752 Million​​​

Fannie Mae set aside $752 million for credit losses in its apartment complex lending business in part because of fraud or suspected fraud, denting profits amid an industrywide scrutiny of borrowers, Bloomberg News reported. “We have discovered instances of multifamily lending transactions in which one or more of the parties involved engaged in mortgage fraud or possible mortgage fraud,” the firm said in its annual report, released Friday. The $752 million credit loss provision was for the year ended Dec. 31, following $495 million and $1.25 billion in 2023 and 2022, respectively, according to the report. Fannie Mae said it’s continuing to investigate more transactions in which fraud may have occurred and may “discover additional multifamily loans we have purchased that were affected by fraud.” The provision for losses was also driven by declining multifamily values and an increase in delinquencies, the firm said in its fourth-quarter earnings. That left Fannie Mae with $2.5 billion net income in its multifamily business last year, against net revenue of $4.7 billion. Read more.

In-Office Work at Highest Level Since 2020, as Companies Pull Back on Remote​​​

With employer mandates across the country taking effect, the number of people coming into an office is at its highest point since the pandemic, according to data released from property management company Kastle Systems, the Washington Post reported. During the final week of January, office occupancy — or the percentage of office space that is filled — hit a record-high average of 54.2 percent in 10 major cities, with Houston, Austin and Dallas leading the way. At 51.5 percent occupancy, D.C. had its highest week since March 2020. The rise in people working from the office is expected to continue to climb slowly, commercial property experts said, even as some employers continue to offer flexible work arrangements. As of the first week of February, office occupancy remained stable at 54.1 percent, according to Kastle. Houston led at 65.1 percent, while San Francisco brought up the rear at 43.2 percent. Read more.

How Tariffs Could Shock America’s Power System​​​

America’s power grid is due for some big investments. Tariffs could now make that much costlier, the Wall Street Journal reported. As surging power demand from places such as data centers is set to strain the system, transformers, the nuts and bolts of the power system, look particularly vulnerable. These are devices that step up or down voltages as electricity moves from power plants to homes and factories. New ones are also required every time a new source of electricity — whether wind, solar or natural gas — connects to the grid. The lack of these components can therefore hold up more power from being brought online. The power industry has already been experiencing a shortage of transformers, for which demand is expected to jump even more in the coming years. Suppliers have been reluctant to invest large sums of capital to expand production capacity, because such investments have long break-even timelines, according to a report from Wood Mackenzie. The National Renewable Energy Laboratory estimates that about 55% of in-service distribution transformer units are older than 33 years and are approaching their end of life. Distribution transformer capacity might need to increase 160% to 260% by 2050 compared with 2021 levels to meet demand, according to the NREL. (Subscription required.) Read more.

Applications Due on Monday for ABI’s Diversity Mentoring Program​​​

Applications are now being accepted for ABI’s Diversity Mentoring Program, hosted by our Diversity, Equity and Inclusion Committee to connect active or recently graduated business and law students with experienced insolvency professionals and ABI members who are offering professional development guidance. Throughout the program, mentors and mentees will meet bi-monthly to discuss a variety of topics with resources from ABI and members of the reorganization community, including judges, trustees, attorneys and accountants. For more information about the Diversity Mentorship Program and to apply to be a mentee for 2025-26, please visit ABI’s Diversity and Inclusion website at diversity.abi.org; applications are due February 24.

ABI Seeking Nominations for "Asset Sale of the Year"​​​

ABI’s Asset Sales Committee is seeking nominations for its Seventh Annual ABI Asset Sale of the Year award. Any bankruptcy sale that closed between January 1 and December 31, 2024, and involved at least one professional who is a member of ABI’s Asset Sales Committee (free for ABI Members to join) is eligible. Nominations are due February 28; for more information about the award and submitting a nomination, please click here.

INSOL International Looking for Candidates to Fill CEO Vacancy​​​

INSOL International, a cross-border nonprofit organization and catalyst for a wide range of ancillary groups representing the judiciary, regulators, lenders and academics, is looking for candidates to fill its Chief Executive Officer (CEO) vacancy. The position will play a key role in shaping the future of INSOL International by implementing the organization’s strategy, delivering initiatives, and expanding its influence and membership. For more information on the position and to submit an application, please click here.

Access All Current ABI Titles Through ABI’s New Digital Book Subscription!​​​

One of the best collections of bankruptcy books is now available as an annual digital subscription! ABI’s bankruptcy library opens the door to a constantly evolving area of the law, and our books are continually being updated by top industry professionals. Auto-renewing annual subscriptions guarantee immediate access to this invaluable resource, which is comprised of fully searchable content that’s always available on any digital device. Convenient pricing plans for individual and institutional subscribers offer immediate and unlimited access to our entire digital library of books — nearly 100 treatises! Plus, you get advanced access to new and revised books as soon as they are published — all included in your annual subscription. Learn more!

Have an Idea for a Topic for an ABI Conference Session? Submit Your Proposal via ABI’s “Call for Abstracts” Page!​​​

ABI has launched an online portal for professionals to submit proposals for educational sessions at future ABI conferences. Submitters can describe their proposed topic, outline the session’s focus and learning goals, suggest speakers, and provide contact information via the portal’s detailed form. The portal can be accessed here.

All submissions will be reviewed by an internal Education Committee, which will contact the submitter to ask questions as needed and to discuss the status of the proposal. Submissions will be reviewed on a rolling basis.

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