Borrowers

Loan Modification and the Failure to Mitigate Damages

by Anthony Narula, Philip R. Stein | Bilzin Sumberg Mortgage Repurchase Group on 5/20/2013

Freddie Mac has announced the immediate implementation of its Streamlined Modification program, a no-document modification program offered to severely delinquent borrowers. The implementation of the program, originally set to...more

Assignees Not Liable for Lender Violations of Maryland Secondary Mortgage Loan Law, Appeals Court Holds

by Steven D. Burt, Sarah Reise, Robert Scott | Ballard Spahr LLP on 5/20/2013

In a decision that narrows the scope of potential liability for assignees of second mortgage loans secured by Maryland properties, the state’s intermediate appellate court recently rejected an attempt by borrowers to hold an...more

Summary Of HUD’s LEAN 232 Program E-Mail Blast: Office Of Residential Care Facilities (ORCF), April 29, 2013

by Christine Waldmann Carmody, Blair L. Schiff | Pepper Hamilton LLP on 5/10/2013

In an effort to summarize the highlights of the U.S. Department of Housing and Urban Development (HUD) LEAN E-mail Blasts that we receive, and rarely have time to review in a timely fashion, we at Pepper are providing this...more

Successor Banks of FDIC assets Not so Jolly after Jolley - A New Duty to Investigate?

by Allan Ickowitz, John Kim, Jennifer Meeker | Nossaman LLP on 5/7/2013

A recent California case appears to contradict the general rule holding that a successor bank that has acquired a commercial loan through an FDIC receivership may owe a duty to a commercial borrower to reasonably investigate...more

On Appeal: The Michigan Court of Appeals Overturns It's Prior Ruling and Affirms the State's 2012 Legislation, Nonrecourse...

by Matthew Ginsburg | Dechert LLP on 4/30/2013

As we have discussed numerous times in this blog, the downturn in the commercial real estate market resulted in much litigation as to guarantor liability for non-recourse debt. As a brief refresher, many of the non-recourse...more

Freddie Mac Announces Numerous Servicing Policy Updates

by BuckleySandler LLP on 4/26/2013

On April 15, Freddie Mac issued Bulletin Number 2013-6, which announces numerous revisions to servicing requirements. The bulletin updates the allowable amounts for attorney fees for default-related legal services and details...more

Closing Protection Letters: Overlooked Indemnity Coverage For Common Foreclosure Defense Claims

by Joanne Davies, Randall Manvitz | Buchalter Nemer on 4/25/2013

Mortgage lenders are all too familiar with borrowers’ assertions that they did not receive two properly dated copies of the Truth-In-Lending Act (“TILA”) mandated Notice of Right to Cancel form (“NORTC”) at closing. Under...more

CFPB Solidifies Loan Originator Compensation Restrictions, Dumps Zero-Zero Requirement

by Melanie Brody, Jonathan Jaffe, Kristie Kully, Eric Mitzenmacher | K&L Gates LLP on 4/24/2013

Even though the loan originator compensation rule (the “Final Rule” or “Rule”) finalized by the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) in January passed without as much fanfare as the Bureau’s Qualified...more

CFPB to hold student loan field hearing on May 8

by John L. Culhane, Jr. | Ballard Spahr LLP on 4/22/2013

UniversityThe CFPB has announced that on May 8, 2013, it will hold a field hearing in Miami-Dade County, Florida on student loan borrowers. CFPB Director Richard Cordray will be giving remarks at the event....more

CMBS Special Servicer Team Leads Training on Strategies to Effectively Address Defaulting Tenant in Common Borrowers

by Baker, Donelson, Bearman, Caldwell &... on 4/19/2013

Baker Donelson's CMBS Special Servicer team recently lead a training session for one of our clients on unique issues and strategies involved with defaulted loans involving tenant in common (TIC) borrowers. We have seen...more

New Swap Business Conduct and Record-Keeping Regulations Kick in for Municipal Bond Issuers and Borrowers

by Nicholas Bentley, Meghan Burke, Charles Carey, Steve Ganis, Gregory Sandomirsky, Len Weiser-Varon | Mintz Levin - Public Finance on 4/18/2013

Beginning May 1, 2013, many new business conduct regulations adopted by the Commodity Futures Trading Commission (“CFTC”) pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) will begin to...more

TBTF Servicing: Another Issue for Originators to Consider

by Russell Koonin, Robert Siegel | Bilzin Sumberg Mortgage Repurchase Group on 4/18/2013

As widely reported recently, close to 1.2 million borrowers (about 30% of the more than 3.9 million households that faced foreclosure proceedings by the 11 leading financial institutions in 2009 and 2010), had to battle...more

Bank Regulators Announce First Foreclosure Review Payments

by BuckleySandler LLP on 4/18/2013

On April 9, the Federal Reserve Board and the OCC announced that payments to borrowers impacted by allegedly improper foreclosure practices would begin on April 12, 2013. ...more

New California Court of Appeal Decision May Affect Administration of Foreclosure-Avoidance Actions

by Joshua Castillo, Tim Hsu | Allen Matkins Leck Gamble Mallory & Natsis... on 4/17/2013

California's Legislature responded to the residential foreclosure crisis by, among other things, enacting new statutes aimed at clarifying the rights of borrowers facing foreclosure and imposing new restrictions on...more

A nuisance called FATCA – Does the UK/US IGA make it bearable?

by Peita Menon, Prabhu Narasimhan | White & Case LLP on 4/15/2013

The introduction by the US of the Foreign Account Tax Compliance Act 2010 (FATCA) set the proverbial cat amongst the pigeons in the international loan financing markets by requiring foreign and domestic borrowers, lenders and...more

Proposed Regulations May Affect Default Risk for Borrowers with Pension Plans

by Mark Jones, Matthew Ryan | Pillsbury Winthrop Shaw Pittman LLP on 4/12/2013

The Pension Benefit Guaranty Corporation (PBGC) has proposed regulatory safe harbors waiving the obligation of financially sound defined benefit pension plans and the companies that maintain them from the duty to report...more

Housing Counselor Survey Alleges Banks Fail To Comply With National Mortgage Settlement.

by BuckleySandler LLP on 4/8/2013

On April 3, a California borrower advocacy organization published the results of its survey of housing counselors, which the organization claims reveals that problems persist with the implementation of the national servicing...more

Mortgage Foreclosure Mediation Program Terminated By Florida Supreme Court

by Messer & Caparello, P.A. on 4/4/2013

Florida has the highest foreclosure rate in the country, with some sources showing a 3.11% foreclosure rate in 2012 – more than double the national average. At the end of 2009, with nearly 500,000 pending foreclosures and a...more

Usury in Florida; Generally

by Scott J. Kennelly, Susan Novak | Rogers Towers on 4/2/2013

Under Florida law, usury is defined as the willful and knowing charge or receipt of interest in excess of 18% per year for credit transactions involving less than $500,000 or between 25% and 45% per year in a credit...more

Middle Market Loan Update

by Mark Oveson, Jay Spader | Brownstein Hyatt Farber Schreck on 3/29/2013

The Effect of the Financial Crisis on Middle Market Loan Terms Part 1. Loan Buybacks - In addition to providing an object lesson in the dangers of lax lending standards, the global financial crisis of 2008 gave...more

Agencies Issue Updated Leveraged Lending Guidance

by Schecter Law on 3/25/2013

Federal bank regulatory agencies released updated supervisory guidance on leveraged lending. The guidance covers transactions characterized by a borrower with financial leverage that significantly exceeds industry norms. The...more

Fifth Circuit Decisions Concerning Confirmation Of Plans Of Reorganization

by Richard London | Perkins Coie on 3/22/2013

The U.S. Court of Appeals for the Fifth Circuit recently issued two decisions that affect a borrower’s ability to confirm a bankruptcy plan, Western Real Estate Equities, L.L.C. v. Village at Camp Bowie I, L.P. (In re Village...more

Burr Alert: CFTC Issues New Guidelines Concerning Eligibility Of Swap Guarantors

by Adam Sonenshine | Burr & Forman on 3/21/2013

In secured lending transactions, lenders frequently allow, and even require, borrowers to enter into swap agreements and other financial derivatives to hedge against different business risks, including fluctuations in...more

You Need to Pay Attention to the Consumer Financial Protection Bureau

by Rich Benenson, Eric Berg, Jeffrey Rugg, Jonathan Sandler | Brownstein Hyatt Farber Schreck on 3/21/2013

For those companies who pay attention to the always evolving regulatory environment as we do at Brownstein Hyatt Farber Schreck, you have likely heard the debate regarding the validity of rules promulgated by organizations...more

Drafting Errors - Routinely Cost Lenders’ Post-Bankruptcy Attorney’s Fees and Interest

by Charles Ekberg, Bruce Leaverton, Kay Lennon | Lane Powell PC - Bankruptcy & Creditors'... on 3/20/2013

Originally published in Community Banker - Spring 2013. When a bankruptcy intervenes to prevent the continuation of a restructuring or loan enforcement effort, it is too late to supplement or strengthen loan...more

Home

Legal News

Find a Lawyer

Browse Subjects

Subscribe

Pro Services

For Reporters