The U.S. Supreme Court will likely consider whether to grant or deny certiorari in the Madden v. Midland Funding case at its June 23 conference. In addition, Midland filed a supplemental brief with the Supreme Court on June 7...more
While far from certain, this development shows that the Supreme Court is interested in the case and will likely give weight to the Solicitor General’s recommendation as to whether the Second Circuit’s ruling should be...more
Whether this new approach is accepted by other marketplace lenders who collaborate with banks to originate loans will be something to keep an eye on going forward.
Lending Club filed its revised Loan Receivables and Sale...more
The CFPB’s actions are likely the first steps in identifying consumer issues with marketplace lenders.
The Consumer Financial Protection Bureau (CFPB or Bureau) is flexing its muscles once again, and this time the target...more
The new partnership structure will ensure WebBank is financially invested in the loans it originates, continues to have an ongoing contractual relationship with the borrower, and that the economics of the bank are tied to the...more
The FDIC continues to be the one regulator with the most cautious outlook regarding marketplace lending.
The Federal Deposit Insurance Corporation’s (FDIC’s) February 1 issue of Supervisory Insights continues the...more
The certiorari petition asks the court to address whether the National Bank Act continues to have preemptive effect after the national bank has sold or otherwise assigned a loan to another entity.
In a petition for a...more
In a recent clash between contract principles and the mootness doctrine, contract principles won. Relying on traditional contract principles, the U.S. Supreme Court issued a 6–3 decision on January 20, holding that an...more
The TCPA has been a source of significant class action activity in recent years as businesses seek to navigate the law and plaintiffs’ lawyers seek to exploit its many ambiguities....more
The FDIC’s new requirements will substantially increase the costs imposed on banks that wish to purchase marketplace loans.
On November 6, the Federal Deposit Insurance Corporation (FDIC) issued Financial Institution...more
On October 30, 2015, the Securities and Exchange Commission (SEC) adopted final crowdfunding rules. More than two years after the publication of the proposed crowdfunding rules, the SEC approved regulations that permit...more
11/4/2015
/ Blue Sky Laws ,
Broker-Dealer ,
Capital Raising ,
Compliance ,
Crowdfunding ,
Disclosure Requirements ,
EDGAR ,
Federal Register ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Institutions ,
Initial Public Offering (IPO) ,
Investment ,
Investors ,
JOBS Act ,
Regulation D ,
Reporting Requirements ,
Rule 506 Offerings ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC)
The Treasury Department’s notice and request poses 14 detailed questions to gather public information concerning the role of marketplace lending in the financial services industry.
On July 16, 2015, the U.S. Department...more
7/27/2015
/ Consumer Lenders ,
Financial Institutions ,
HMDA ,
Lenders ,
Mortgage Lenders ,
Mortgages ,
Peer-to-Peer ,
Real Estate Market ,
Risk Retention ,
Small Business ,
Student Loans ,
U.S. Treasury
Marketplace lenders and investors that purchase interests in loans originated by banks should pay close attention as it could spawn a host of class action lawsuits if left standing.
In a controversial opinion decided on...more
6/25/2015
/ Bank of America ,
Class Action ,
Credit Cards ,
Debt Buyers ,
FDCPA ,
FDIC ,
Financial Institutions ,
Financial Markets ,
Interest Rates ,
Investors ,
Lenders ,
Loans ,
Midland Funding ,
National Bank Act ,
Non-Bank Lenders ,
Preemption ,
Usury
Not worried about cybersecurity at your financial institution? Then you are in the minority. Cyber-risk was identified as the number one worry of bank risk managers at a panel of bank chief risk officers at the American...more
In This Presentation:
- Regulatory expectations for financial institutions
- Risks for financial institutions
- Planning to reduce risks
- The Breach
- Duties and responsibilities
-...more
6/23/2015
/ Banking Sector ,
Cyber Attacks ,
Cybersecurity ,
Data Breach ,
Enforcement ,
FFIEC ,
Financial Institutions ,
Regulatory Agencies ,
Regulatory Oversight ,
Risk Assessment ,
Security and Privacy Controls ,
Strategic Planning
Even after the PayPal settlement, the definition of “abusive” remains as subjective and fact specific as ever.
On May 19, PayPal agreed to a $25 million settlement with the Consumer Financial Protection Bureau (CFPB or...more
6/18/2015
/ Abusive Acts ,
Civil Penalty Fund ,
Consumer Financial Protection Bureau (CFPB) ,
Deceptive Intent ,
Dodd-Frank ,
Failure To Disclose ,
PayPal ,
Redress Payments ,
Sprint ,
Telecommunications ,
UDAAP
On March 26, the Consumer Financial Protection Bureau (CFPB or Bureau) announced several proposals to regulate short-term and longer-term consumer loans. According to the Bureau, the proposals will likely have the effect of...more
On March 19, the Consumer Financial Protection Bureau (CFPB or Bureau) adopted a proposal to publicly disclose consumer complaint narratives in its Consumer Complaint Database. The Bureau also published its final policy...more
The Consumer Financial Protection Bureau (CFPB or Bureau) announced on March 17 that it is seeking public comment, via a Request for Information, ahead of a second study on the credit card market. With this request, the...more
The relationship between certain peer-to-peer or marketplace lending platforms and the banks who actually make the loans to consumers leads to the often-debated question of “Who is the true lender?” Recent court decisions...more
On July 30, 2014, the Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking (the Proposed Rule) to clarify and strengthen customer due diligence (CDD) requirements as a fifth pillar under the...more
On July 28, 2014, in response to growing pressure from Congress and the banking industry, the Federal Deposit Insurance Corporation (FDIC) issued Financial Institution Letter 41-2014 to clarify its supervisory approach to...more
On March 7, 2014, the United States District Court for the District of Nevada in Federal Trade Commission (the FTC) v. AMG Services, Inc., et al. granted a partial victory to Indian tribal payday lenders in their ongoing...more
Traditionally, the Office of the Comptroller of the Currency (OCC) did not require a national bank seeking to engage in non-depository, trust-only activities (a “trust-only bank”) to obtain Federal Deposit Insurance...more
Native American tribes increasingly are engaging in consumer lending over the Internet. These “tribal loans” present unique legal questions and issues, including whether tribal sovereign immunity shields tribes and their...more