As originators and brokers of mortgage loans continue to get served with new lawsuits (or threatened with potential suits) related to loans that they conveyed to aggregators prior to the financial crisis of 2008, questions...more
2/13/2019
/ Appeals ,
Breach of Contract ,
Contract Disputes ,
Financial Crisis ,
Financial Services Industry ,
Indemnification ,
Misrepresentation ,
Mortgage Brokers ,
Mortgage Loan Aggregators ,
Mortgage Loan Originators ,
Mortgages ,
Real Estate Transactions ,
Repurchases ,
Statute of Limitations
Over the last several years, we have posted several times about whether the statute of limitations bars remedies against lenders (and sometimes sponsors and trustees) of residential mortgages. ...more
Last week, Lehman Brothers Holdings Inc. (“LBHI”) filed two new motions in its ongoing Southern District of New York Bankruptcy Court litigation against approximately 130 loan originators and brokers...more
Ten years after the financial crisis, mortgage companies and regional/local banks are still getting hit with new breach of contract and indemnification claims related to loans sold before the crisis....more
4/30/2018
/ Consumer Financial Products ,
Consumer Lenders ,
Demand Letter ,
Financial Services Industry ,
Indemnification ,
Institutional Investors ,
JPMorgan Chase ,
Mortgages ,
RMBS ,
Securities Fraud ,
Settlement
On March 8, the Bankruptcy Court for the Southern District of New York concluded a lengthy “claims estimation” trial to determine the appropriate final settlement price for a resolution of lawsuits filed on behalf of...more
Here is a situation that comes up quite a bit in the world of business contracts containing indemnification provisions, and in the insurance industry as well. First, a party (“Party A”) gets sued, or threatened with a suit,...more
On November 1, President Trump formally did away with a Consumer Financial Protection Bureau (CFPB) arbitration rule that would have given consumers the opportunity to file class actions against banks and other companies in...more
11/3/2017
/ Arbitration ,
Arbitration Agreements ,
Banking Sector ,
Class Action ,
Class Action Arbitration Waivers ,
Congressional Review Act ,
Consumer Contracts ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Dodd-Frank ,
Federal Arbitration Act ,
Financial Services Industry ,
Richard Cordray ,
Trump Administration
Thousands of mortgage lenders across the country either recently received, or will soon be receiving, this document from Lehman Brothers Holdings, Inc. (LBHI). It is a notice of a motion to approve a proposed settlement of...more
5/24/2017
/ Banking Sector ,
Commercial Bankruptcy ,
Fannie Mae ,
Freddie Mac ,
Indemnification ,
Lehman Brothers ,
Mortgage Lenders ,
Mortgages ,
Popular ,
Repurchases ,
RMBS ,
Settlement Offer
For those who have been wondering—as I did in a previous post—what the new presidential administration would mean for the Consumer Financial Protection Bureau (CFPB), an agency that has been in Republicans’ crosshairs...more
3/23/2017
/ Administrative Proceedings ,
Banking Sector ,
Constitutional Challenges ,
Consumer Financial Protection Bureau (CFPB) ,
Department of Justice (DOJ) ,
Dodd-Frank ,
PHH Corp. v CFPB ,
Removal For-Cause ,
RESPA ,
Single Director ,
Statutory Interpretation ,
Trump Administration
Wednesday, February 1 brought a welcome development for the many correspondent lenders currently defending against claims filed by (or threatened with future lawsuits by) Residential Funding Company (“RFC”) and its...more
With 2016 rapidly drawing to a close, here are some thoughts regarding the types of litigation and legal/regulatory issues that will likely be top-of-mind for financial services companies, especially mortgage companies and...more
12/23/2016
/ Banks ,
Civil Investigation Demand ,
Consumer Financial Protection Bureau (CFPB) ,
Data Breach ,
Data Security ,
Department of Justice (DOJ) ,
Department of Labor (DOL) ,
FDIC ,
Federal Trade Commission (FTC) ,
Fiduciary Rule ,
Financial Services Industry ,
Indemnification Clauses ,
Mortgage Lenders ,
PHH Corp. v CFPB ,
RMBS
The Consumer Financial Protection Bureau (CFPB) will likely be weakened by the incoming Trump administration and its Republican allies in Congress. Exactly how, and how much, remains to be seen, however—and, in the meantime,...more
12/5/2016
/ Banking Sector ,
Bonuses ,
Consumer Lenders ,
Cross-Selling ,
Financial Institutions ,
Financial Regulatory Reform ,
Fraud ,
Incentive Compensation ,
Mortgage Lenders ,
Mortgages ,
Online Marketplace Lending ,
Payday Loans ,
Popular ,
Regulatory Oversight ,
Trump Administration ,
Wells Fargo
The United States Court of Appeals for the Second Circuit, a highly influential appellate court sitting in New York, on September 26 issued a unanimous ruling with major implications for antitrust and unfair competition laws,...more
9/28/2016
/ American Express ,
Anti-Steering Rules ,
Antitrust Investigations ,
Antitrust Violations ,
Appeals ,
Corporate Counsel ,
Credit Cards ,
Department of Justice (DOJ) ,
Fees ,
Financial Institutions ,
Merchants ,
Retailers ,
Reversal ,
Unfair Competition
After the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 authorized its creation, the Consumer Financial Protection Bureau (CFPB) began operating on July 21, 2011. In the more than five years since it...more
8/23/2016
/ Arbitration ,
Arbitration Agreements ,
Class Action ,
Class Action Arbitration Waivers ,
Consumer Contracts ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Financial Institutions ,
Financial Services Industry ,
Mandatory Arbitration Clauses
In the aftermath of major data breaches at deep-pocketed retailers and other businesses, there is typically no shortage of litigants who move quickly to seek compensation from the business at which the breach occurred. But...more
7/12/2016
/ Article III ,
Corporate Counsel ,
Credit Cards ,
Credit Unions ,
Cyber Attacks ,
Cyber Crimes ,
Cybersecurity ,
Data Breach ,
Federal Trade Commission (FTC) ,
Financial Institutions ,
FTC Act ,
Hackers ,
Home Depot ,
Interlocutory Appeals ,
Negligence ,
Personally Identifiable Information ,
Popular ,
Section 5 ,
Standing ,
Unfair or Deceptive Trade Practices
The U.S. Supreme Court held Monday that the Ninth Circuit erred when it ruled consumers can sue companies without alleging actual injury. The Supreme Court ruled that a consumer could not sue Spokeo Inc. for mere technical...more
President Obama is poised to sign the Defend Trade Secrets Act 2016 (“DTSA” or the “Act”), legislation that would fundamentally overhaul the decades-long tradition of state control of trade secrets lawsuits. DTSA, which...more
Virtually ever since its inception on July 21, 2011, the Consumer Financial Protection Bureau (CFPB) has inspired wariness and skepticism in the financial institutions and financial services providers, subject to this new...more
5/6/2016
/ Administrative Law Judge (ALJ) ,
Banking Sector ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Financial Institutions ,
Financial Services Industry ,
Insurance Industry ,
Jurisdiction ,
Kickbacks ,
Mortgage Insurance ,
Mortgage Servicers ,
Mortgages ,
Popular ,
Recess Appointments ,
Reinsurance ,
RESPA
Calling the settlement a reproach for “years of reckless underwriting” at Wells Fargo, U.S. Attorney Preet Bharara in Manhattan announced on April 8th that Wells Fargo & Co. formally reached a record $1.2 billion settlement...more
After years of litigation costing tens of millions of dollars, the Federal Housing Finance Agency has hit upon a way to expedite resolution of breach of representation and warranty claims that, if successful, could minimize...more
Six victories that clients of ours had won over Lehman and Aurora in the U.S. District Court for the District of Colorado got affirmed on January 27 by the Tenth Circuit Court of Appeals in Denver after hotly-contested rounds...more
As data breaches and their related obligations and liability risks continue to pile up with every passing year, we asked attorneys writing on JD Supra to answer the question: What will be among the defining issues for...more
Cybersecurity has been a focus as part of bank exams for years. Now the Federal Deposit Insurance Corp. (FDIC) is increasing its scrutiny of banks’ cybersecurity practices to ensure that the issue is getting appropriate...more
In recent years, there has been no shortage of news about large-scale data privacy breaches; incidents that have affected tens of millions of consumers nationwide. Those incidents have spurred a growing market for so-called...more
For too long, “swiping” a credit card has had at least one meaning too many. There was “swiping” as it pertains to running the magnetic strip of your credit card inside the groove of a small payment terminal to make an...more
10/19/2015
/ Counterfeiting ,
Credit Cards ,
Debit and Credit Card Transactions ,
Electronic Payment Transactions ,
EMV ,
Financial Institutions ,
Financial Transactions ,
Fraud ,
Hackers ,
Point of Sale Terminals ,
Professional Liability ,
Retail Market ,
Retailers ,
Technology Sector