Williams Mullen's Comeback Plan: Part IV - How Banks Think About Loan Defaults: Lessons for Borrowers in Troubled Times
Last year’s enactment of the “One Big Beautiful Bill Act” (OBBBA) included significant changes to the federal student loan system. New borrowers will be impacted starting July 1, 2026, while current borrowers will see shifts...more
When a commercial loan falls into default, borrowers often assume the greatest risk comes from the lender’s enforcement tools, such as foreclosure, receivership, or outright litigation. In practice, however, the party with...more
When a borrower defaults on a commercial loan, the lender's initial steps can make the difference between a successful workout and a drawn-out collection process. It is essential to understand the lender’s options and act...more
On September 22, 2025, California Governor Gavin Newsom signed Assembly Bill 238, which took immediate effect as an urgency statute. The new Mortgage Forbearance Act (the Act) can be found in section 3273.20 et seq. of the...more
On September 22, 2025, California Gov. Gavin Newsom signed the Mortgage Forbearance Act into law, with an immediate effective date. The law, designed to provide emergency relief to California mortgage loan borrowers impacted...more
For all those interested in all things "Interest" related, we provide a summary of recent state and federal court cases involving usury, finance charges, and interest rates, as they relate to the consumer and commercial...more
On September 22, the governor of California signed into law AB 238, the Mortgage Forbearance Act, to provide relief to homeowners affected by several January 2025 wildfires....more
A recent decision by the U.S. Bankruptcy Court for the Southern District of Illinois underscores that creditors must exercise caution in relying on pre-petition waivers of the automatic stay in collection actions. ...more
Our new insightful and informative series, “Protecting Lenders: Strategic Responses to Borrower Default," is designed to provide comprehensive guidance on managing borrower defaults effectively. This four-part series covers...more
In a recent opinion and order, the US Bankruptcy Court for the Southern District of Illinois denied a secured lender’s motion for relief from the automatic stay in order for the lender to record a deed being held in escrow...more
2 On December 5, 2024, the California Air Resources Board--the agency responsible for implementing California's climate disclosure regulations--announced that it would “exercise enforcement discretion for the first reporting...more
On September 12, 2024, the Consumer Financial Protection Bureau (CFPB) filed a stipulated proposed order in its suit against the student loan servicer Navient, formerly known as Sallie Mae. If entered, the order will resolve...more
A strange confluence of geopolitical events, labor unrest, softening consumer demand, and supply-chain logistical issues could leave lumps of coal in the stockings of lenders this holiday season. The story begins in the Red...more
The commercial real estate industry is facing an impending tsunami of $2 trillion in debt maturities, with an estimated $929 billion coming due this year. If you will be caught in this net because the loan secured by your CRE...more
The Consumer Financial Protection Bureau (CFPB) on July 10, 2024, announced a proposed rule that would require servicers to more intently assist borrowers throughout a "loss mitigation review cycle" before being permitted to...more
When commercial real estate loans go into default, workouts are often pursued to resolve the default by agreement. What are the common forms of workout agreements? For commercial real estate borrowers in default, it’s...more
A federal district court in Texas denied a preliminary injunction filed by a franchisee (“EYM”) after Pizza Hut, as franchisor, terminated the franchise agreements....more
In the precedential decision of Intellectual Tech LLC v. Zebra Techs. Corp., the U.S. Court of Appeals for the Federal Circuit reversed a ruling from the U.S. District Court for the Western District of Texas that dismissed a...more
The first three articles in this series took you through the steps for developing a workout strategy. If you have followed those recommendations, you understand where you are and where you want to be. You have also developed...more
After an Event of DefaultContract occurs, it is important to understand the options available to the Lender other than demanding repayment or simply waiving the default. A Forbearance Agreement allows the Lender to preserve,...more
If you are a mortgage lender who followed the recommendations in the first article in this series, then you should have a solid grasp of your mortgage portfolio. You have identified the relevant players and their respective...more
On May 6, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint and two proposed stipulated final judgments to resolve its claims against the National Collegiate Student Loan...more
Key Points - On Thursday, April 25, the FCC voted 3–2 to reinstate the Commission’s net neutrality framework by reclassifying broadband Internet access service as a Telecommunications Service, which is regulated under Title...more
Join us for our newest webinar series, Energy Transition & Infrastructure Private Credit. Over the course of the series, hear from McDermott lawyers and industry-leading guest speakers as they discuss different topics shaping...more
On February 9, the Department of Veterans Affairs (VA) issued a circular to consolidate updates related to VA’s disaster modification and loan deferment options. Effective February 9, the circular reiterates the options for...more