Navient Corporation (NASDAQ:NAVI) Files An 8-K Other Events
ITEM8.01
| Other Events |
On January18, 2017, the Consumer Financial Protection Bureau (the
CFPB), the Offices of the Attorneys General for the State of
Illinois and the State of Washington (collectively the Attorneys
General) filed civil actions naming Navient Corporation (the
Company) and several of its subsidiaries as defendants alleging
violations of Federal and State consumer protection statutes,
including the Consumer Financial Protection Act of 2010, the Fair
Credit Reporting Act, the Fair Debt Collection Practices Act and
various State consumer protection laws. These civil actions are
related to various Civil Investigative Demands (CIDs) that were
previously issued by the CFPB and the Attorneys General beginning
in December 2013 and thereafter which have been disclosed
previously in the Companys filings.
On January18, 2017, the Company issued two news releases
concerning these actions. The Company intends to vigorously
defend itself against the allegations included in these lawsuits.
At this point in time, the Company is unable to anticipate the
timing of a resolution or the ultimate impact that these legal
proceedings may have on the Companys consolidated financial
position, liquidity, results of operation or cash flows. It is
possible that an adverse ruling or rulings may have a material
adverse impact on the Company.
Item9.01 |
Financial Statements and Exhibits |
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Cautionary Note on Forward-Looking Statements
Statements in this report that are not historical facts,
including statements about the Companys beliefs, opinions or
expectations and statements that assume or are dependent upon
future events, are forward-looking statements and often contain
words such as expect, anticipate, intend, plan, believe, seek,
see, will, would, or target. Forward-looking statements are
subject to risks, uncertainties, assumptions and other factors
that may cause actual results to be materially different from
those reflected in such forward-looking statements. For Navient,
these factors include, among others, the risks and uncertainties
associated with increases in financing costs or the availability
of financing; limits on our liquidity resulting from disruptions
in the capital markets or other factors; unanticipated increases
in costs associated with compliance with laws and regulations;
changes in the marketplaces in which we compete (including
changes in demand or changes resulting from new laws and
regulations); changes in accounting standards pertaining to loan
loss reserves and estimates or other accounting standards that
may impact our operations; adverse outcomes in any significant
litigation to which the Company is a party; credit risk
associated with the Companys exposure to third parties, including
counterparties to the Companys hedging transactions. The Company
could also be affected by, among other things: unanticipated
deferrals in our FFELP securitization trusts that would delay
repayment of the bonds beyond their legal final maturity date;
reductions in our credit ratings, the credit ratings of
asset-backed securitizations we sponsor or the credit ratings of
the United States of America; failures of our operating systems
or infrastructure or those of third-party vendors; risks related
to cybersecurity including the potential disruption of our
systems or potential disclosure of confidential customer
information; damage to our reputation resulting from the
politicization of student loan servicing; changes in law and
regulations with respect to the student lending business and
financial institutions generally; delays or errors in converting
portfolio acquisitions to our servicing platform; increased
competition from banks and other consumer lenders who are not
subject to the same level of regulation, the creditworthiness of
our customers; changes in the general interest rate environment,
including the relationship between the relevant money-market
index rate and the rate at which our assets are priced; changes
in general economic conditions and the other factors that are
described in the Risk Factors section of Navients Annual Report
on Form 10-K and
in its future reports filed with the Securities and Exchange
Commission. The preparation of the Companys consolidated
financial statements also requires management to make certain
estimates and assumptions including estimates and assumptions
about future events. These estimates or assumptions may prove to
be incorrect and actual results could differ materially. All
forward-looking statements contained in this release are
qualified by these cautionary statements and are made only as of
the date of this release. The Company does not undertake any
obligation to update or revise these forward-looking statements
except as required by law.
About Navient Corporation (NASDAQ:NAVI)
Navient Corporation is a loan management, servicing and asset recovery company. The Company holds the portfolio of education loans insured or guaranteed under the Federal Family Education Loan Program (FFELP), as well as the portfolio of Private Education Loans. FFELP Loans are insured or guaranteed by state based on guaranty agreements among the United States Department of Education (ED) and these agencies. Private Education Loans are education loans to students or their families that bear the full credit risk of the customer and any cosigner. The Company operates in three segments: FFELP Loans, Private Education Loans and Business Services. The Company services its own portfolio of education loans, as well as those owned by banks, credit unions, non-profit education lenders and ED. It also provides asset recovery services on its own portfolio, guaranty agencies, higher education institutions, ED and other federal clients, as well as states, courts and municipalities. Navient Corporation (NASDAQ:NAVI) Recent Trading Information
Navient Corporation (NASDAQ:NAVI) closed its last trading session up +0.28 at 16.05 with 6,852,830 shares trading hands.