by Edward (Ted) W. Somers
Orwellian telescreens have not achieved ubiquity, but the
CFPB's massive data collection efforts in recent months feel little less
intrusive to industry participants. Thanks to an ongoing fishing
The fallout from the ongoing banking crisis continues to
emerge, with the arrival in recent days of still more bank failures and of even
more FDIC lawsuits involving failed banks. Unfortunately, the hopes that that
all of the bank failures might be...
Last month, U.S. District Judge Naomi Reice Buchwald in
Manhattan threw out a "substantial portion" of the proposed lawsuits
alleging wrongdoing by banks in connection with the London interbank offered
rate, known as the LIBOR. Among the...
On April 3, the Federal Reserve Board ("Board") published
a final rule ("Rule") specifying when a financial company that may be made
subject to systemic regulation under Title I of the Dodd-Frank Wall Street
Accountability and Consumer...
The Consumer Financial Protection Bureau has expanded its
public Consumer Complaint Database to include complaints about mortgages, bank
deposit products and services, student loans, and other consumer loans (which
category includes complaints about...
March continued the trend of way too many breaking news
stories in Ponzi scheme cases. Here is the summary of the stories that were
reported this month. Please feel free to post comments about these or other
Ponzi schemes that I may have missed. And...
Readers will remember that, before December 2012, the
Electronic Fund Transfer Act required
ATM's to include fee notices on the machines themselves. Congress
eliminated that requirement after banks faced repeated nuisance litigation
A federal jury needed just six
minutes to return with a guilty verdict against a Texas man on trial for a $11
million Ponzi scheme. Gary Lynn McDuff, 58, was convicted of one count of
conspiracy to commit wire fraud and one count of money laundering...
by John D. Socknat and Matthew Saunig
Uniform State Test Implementation Nearing
As we previously noted, on April 1, 2013, 20 state
agencies will begin to accept the Uniform State Test (UST) in connection with
the licensing of mortgage loan originators...
The hedge fund world has always walked a fine line when
it comes to attracting new investors. And nowhere has this line been
thinner than the one between "finders" and "solicitors" - the parties who
act as the middlemen in the investor...
Possibly as a result of a barrage of recent press
criticism for its nonpublic settlements, the FDIC has launched a page on its
website to publish details regarding the settlements it has reached in failed
bank claims. The page, which can be found here...
The Consumer Financial Protection Bureau has issued a proposal
to supervise nonbank servicers of private and federal student loans who qualify
as "larger participants" in the student loan servicing market. Comments on the
proposal will be...
MIAMI - (Mealey's) A federal judge in Florida on March 18 approved TD Bank NA's $62 million settlement that will allow the bank to exit a multidistrict litigation in which class members allege that several banks manipulated the order of debit...
by Richard E. Gottlieb
If Republicans hate the current makeup of the CFPB, they
don't appear to share a hatred for Director Rich Cordray. Press reports suggest that there is little or no
personal animus against the current Director, but those...
A nationwide settlement of three class actions involving
claims that a creditor's practice of using "robo-signed" affidavits in debt
collection actions violated the Fair Debt Collection Practices Act (FDCPA) has
been overturned by the...
A 26-year old south Florida man is expected
to plead guilty to criminal charges that he masterminded a $10 million Ponzi
scheme that financed a his worldwide jet-setting lifestyle. Donald R.
French Jr., 26, is scheduled to appear before a Florida...
by Edmund D. Harllee
On Friday, February 15, the Consumer Financial Protection
Bureau (the "Bureau") published final rules (with official interpretations) in
the Federal Register to amend its Regulation Z (Truth in Lending) to
WASHINGTON, D.C. - (Mealey's) Section 1692k(a)(3) of the
Fair Debt Collection Practices Act (FDCPA) "is not contrary to, and, thus, does
not displace a district court's discretion to award costs under" Federal Rule
of Civil Procedure...
by Richard E. Gottlieb
and Jeffrey E.
For the second time in eight months, the U.S. Chamber of
Commerce has called for the CFPB to take action to "eliminate the uncertainty
and lack of clarity that continues to cloud the Bureau's...
In the wake of the financial crisis, mortgage-related
reforms enacted as part of the Dodd-Frank Act or established under the Basel
capital process have created four different classes of residential mortgage
loans that are entitled to some kind of favorable...
The pace of bank closures has slowed to a trickle. There
have only been three bank failures so far in 2013 (including one this past
Friday evening, involving the Covenant
Bank of Chicago, Illinois ). But while bank failures have dwindled, the
Bruce Karpati, the Chief of the SEC Enforcement
Division's Asset Management Unit, held a Q&A session entitled " Private
Equity Enforcement Concerns " at the Private Equity International Conference
held in New York on January 23, 2013...
by Michael B. Raines
and Jeffrey E.
Although the CFPB's new mortgage rules ("Mortgage Rules")
are less than a month old and do not go into effective until January 10, 2014,
the CFPB is not wasting any time putting the mortgage...
Standard & Poor's raised California's general obligation
bond rating from A-minus to A this month. The upgrade comes just a week after
S&P downgraded Illinois' rating to A-minus, meaning The Prairie State now
has the lowest bond...
by Amanda M. Raines and A.J. Dhaliwal
Amanda M. Raines and A.J.
Dhaliwal, of BuckleySandler LLP, discuss how the power of civil investigative
demands (CIDs) has been brought into focus by two Consumer Financial Protection
Bureau (CFPB) decisions...