News & Analysis as of

Guarantor's "Sham Guaranty" Defense Harder To Prove

A recent case has reaffirmed lenders’ ability to require personal guarantees from principals of borrowing entities. In California Bank & Trust v. Lawlor, a California appellate court considered the enforceability of...more

Challenging FIRREA Subpoenas: The RMBS Working Group Faces Subpoena Fight

As the Justice Department has stepped up its pursuit of financial institutions, there has been a surge of civil fraud lawsuits brought by the government under FIRREA — the Financial Institutions Reform, Recovery, and...more

HUD Revises Lender Self-Reporting Requirements

On November 13, HUD issued Mortgagee Letter 2013-41, which, effective immediately, clarifies self-reporting requirements for all single-family FHA-approved lenders. The letter details lenders’ obligations to report all...more

Bill on Bankruptcy: Appeals Court Changes the Law on Fraud [Video]

Aug. 29 (Bloomberg) -- The U.S. Court of Appeals in Chicago may be out on a limb by itself, or an opinion this week may signal change in attitude toward lenders who discover a customer's fraud and do nothing, as Bloomberg...more

Southern District Of New York Endorses Use Of FIRREA In Mortgage Fraud Cases

On August 16, the U.S. District Court for the Southern District of New York issued a written opinion in support of its May 8, 2013 dismissal of claims for damages and civil penalties under the False Claims Act (FCA) brought...more

After One Year, Judgment Can Only Be Set Aside for Extrinsic Fraud

On February 25, 2010, an agreed final judgment of foreclosure was entered pursuant to a settlement agreement between the original lender and the defendants/appellees. ...more

Legal Notebook: Hunt & Hunt Lawyers v Mitchell Morgan Nominees PTY LTD (ACN 108 571 222) And ORS – High Court Appeal (Australia)

Snapshot - Readers of this journal may recall the judgment of Mitchell Morgan Nominees Pty Limited v Vella [2011] NSWCA 390, which we covered in the Legal Notebook section of the March 2012 edition. That judgment...more

Rogers Towers: Debts Non-Dischargeable When Use of Proceeds Intentionally Misrepresented

When an individual obtains a loan with no intention of repaying the lender, it is well established that such a debt is not dischargeable in bankruptcy. If, however, a debtor does not misrepresent its intent to repay the...more

Federal Government Civil Fraud Suit Targets Mortgage Lender And Its President

On April 4, the U.S. Attorney for the Southern District of New York and HUD officials announced a civil fraud suit alleging FCA and FIRREA claims against a mortgage lender and its president for falsely certifying loans and...more

New California Supreme Court Case Opens Door to Attacks on Contracts

For the past 70 years, California courts have held that a party is barred from claiming fraud based on an alleged oral misrepresentation that directly contradicts the express terms of a written agreement. This rule had long...more

Lenders Beware - Oral Statements may Trump Written Agreements

The California Supreme Court recently held that a borrower may rely upon oral promises to support a fraud claim against its lender even when such oral promises contradict the written agreement....more

FTC Releases 2012 Annual Report of Consumer Complaints

Consumer complaints are playing a big role in the federal government’s identification of and investigations into violations of consumer protection laws. The Federal Trade Commission (“FTC”) recently released its 2012 annual...more

FTC Databook Highlights Consumer Fraud

The FTC last week announced the release of the Consumer Sentinel Network Databook for January – December 2012. The “Consumer Sentinel Network” is the FTC’s platform for law enforcement collaboration on issues affecting...more

Don't Panic - The Fall of Pendergrass and Restoring the Full Fraud Exception to the Parol Evidence Rule May Not Be as Bad as You...

In Riverisland Cold Storage, Inc., v. Fresno-Madera Prod. Credit Ass., S190581, the unanimous California Supreme Court recently overturned the widely criticized Pendergrass rule, thus restoring the full breadth of the fraud...more

California Supreme Court Eases Admissibility of Oral Statements in Contract Fraud Disputes

California, like most jurisdictions, prohibits parties to integrated contracts from introducing “parol evidence” — this is, evidence of prior written or verbal agreements made by a party to a contract — if those alleged...more

Promises to Keep—Lender Beware: California Supreme Court Expands Parol Evidence Fraud Exception

In 1935, the California Supreme Court in Bank of America National Trust and Savings Ass’n v. Pendergrass prohibited a borrower from introducing external or parol evidence to demonstrate fraud in connection with an agreement...more

California Supreme Court Eliminates Lender Defense to Borrower Fraud Claims

On January 14, the California Supreme Court issued its opinion in Riverisland Cold Storage v. Fresno-Madera Production Credit Assn., which takes away a lender defense to borrower fraud claims and will therefore have a...more

Wrongful Foreclosure - A Guide to Foreclosure Fraud

This foreclosure e-book is a complimentary publication offered by our law firm to homeowners to explain what has happened in the housing market over the last several years. We have compiled most of the information from our...more

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