The United States District Court for the Eastern District of Virginia recently affirmed a basic principle of deposit banking, which is that in the absence of an express agreement, a depository bank owes no duty to...more
In Brasko v. Howard Bank, 2022 WL 951771 (D. Md. Mar. 29, 2022), a district court recently certified a subclass of residential mortgage borrowers who alleged that First Mariner Bank, a predecessor of Howard Bank, violated...more
In a consumer class action pending in California, the Ninth Circuit recently vacated a discovery order that would have forced Williams-Sonoma - prior to class certification - to identify all of its California customers who...more
In Futuri Real Estate, Inc. v. Atlantic Trustee Servs., LLC, borrowers Milton and Armida Cortez (the “Borrowers”) obtained three loans secured by separate deeds of trust on their residence: (A) a $415,000 deed of trust in...more
In the wake of the Supreme Court of Virginia’s decision in Parrish v. Fed. Nat’l Mortg. Ass’n, 292 Va. 44, 787 S.E.2d 116 (2016), foreclosure purchasers have faced increasing difficulty evicting borrowers who remain in the...more
The U. S. Court of Appeals for the Fourth Circuit has held that a class representative who failed to allege a concrete injury from incomplete or incorrect information on his credit report did not satisfy the standing...more
The crux of the CFPB’s “abusive act or practice” claim[1] against Nationwide Biweekly Administration, Inc. (“Nationwide”) is that its customers do not understand how long they must remain in the company’s Interest Minimizer...more
At the risk of kicking the CFPB while it’s down, a question worth asking is: how does it actually litigate once a “covered person”[1] decides to resist? Setting aside the noteworthy PHH case, the vast majority of enforcement...more
Despite months of anticipation, the majority opinion in Spokeo, Inc. v. Robins reads more like a teacher (the Supreme Court) telling a student (the Ninth Circuit) to go back and show the work behind a long division answer...more
The Consumer Financial Protection Bureau (CFPB)’s mortgage servicing rules, which took effect on January 10, 2014, contain a number of detailed loss mitigation procedures that servicers must follow after a payment default. ...more
The CFPB’s ability-to-repay (ATR) rule became effective in January 2014. It requires mortgage lenders to determine during underwriting that a borrower has a reasonable ability to repay a loan according to its terms. ...more
10/14/2015
/ Ability-to-Repay ,
Banking Sector ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Foreclosure ,
Good Faith ,
Loan Servicer ,
Mortgage Lenders ,
Mortgage Loan Originators ,
Truth in Lending Act (TILA) ,
Underwriting
“If there is anyone to blame, it is the perpetrators,” said Katherine Archuleta, Director of the federal Office of Personnel Management (“OPM”), to a Senate panel investigating the causes of the recent OPM cyberattack. ...more
The Supreme Court has held that disparate impact claims are valid under the federal Fair Housing Act (the “FHA”). In essence, this means that liability under the FHA can be proven by showing discriminatory effects of...more
Section 1042(a) of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act (CFPA) empowers state Attorneys General (AGs) to bring civil actions to enforce federal consumer law against any person offering...more
Section 1031 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd Frank”) authorizes the Consumer Financial Protection Bureau (“CFPB”) to issue rules to prevent unfair, deceptive, or abusive acts or...more
On-line or electronic banking (“e-banking”) offers many well-known advantages to financial institutions engaged in banking and to their business customers. A significant risk of on-line bank accounts for both financial...more
On March 9, 2015, the United States Supreme Court issued an opinion upholding a 2010 Department of Labor (DOL) interpretative rule finding that mortgage loan officers are generally not administratively exempt from Fair Labor...more
Dodd-Frank created the Consumer Financial Protection Bureau (“CFPB”) and granted that federal agency significant powers to regulate financial institutions. But Dodd-Frank also empowers state regulators to enforce the new...more
2/25/2015
/ Attorney General ,
Consumer Financial Protection Bureau (CFPB) ,
Debt Collection ,
Debtor-Creditor ,
Dodd-Frank ,
ECOA ,
Enforcement ,
Enforcement Actions ,
Equal Access to Credit ,
Financial Institutions ,
UDAAP ,
Unfair or Deceptive Trade Practices
On February 5, 2015, the Federal Trade Commission sent a letter to the Consumer Financial Protection Bureau (“CFPB”) describing its consumer protection efforts in 2014 in the area of debt collection. As reflected in the...more