LexisNexis® Legal Newsroom
Ballard Spahr LLP: Mortgage Foreclosure Is Debt Collection under the FDCPA, Sixth Circuit Holds

By the Consumer Financial Services Group Lawyers whose principal business is mortgage foreclosure or who regularly handle mortgage foreclosures are "debt collectors" subject to the Fair Debt Collection Practices Act, the U.S. Court of Appeals for the Sixth Circuit has ruled. In its decision...

Troutman Sanders LLP: CFPB Releases Rule Aimed at Reforming Force-Placed Homeowners’ Insurance Practices

By David N. Anthony , Alan D. Wingfield , Nicholas R. Klaiber and Virginia Bell Flynn On January 17, 2013, the Consumer Financial Protection Bureau (CFPB) released a rule creating stringent requirements for servicers imposing force-placed insurance on homeowners. A summary of the rule from the CFPB...

Vetstein Law Group: Land Court Paves Way For Clearing Defective Foreclosure Titles

By Richard D. Vetstein, ESQ Court Uses Novel Equitable Assignment of Mortgage Theory In what could be the first test case of a new theory to clear up defective foreclosure titles - and much welcome news for property owners stuck with toxic titles - Massachusetts Land Court Judge Gordon Piper has...

Troutman Sanders LLP: CFPB Announces Plan to Implement New Rules for Mortgage Industry

By John C. Lynch , Ethan G. Ostroff and David M. Gettings The Consumer Financial Protection Bureau (CFPB) announced yesterday that it will be taking steps over the course of 2013 to focus on the mortgage industry's compliance with new consumer protections. The 2010 Dodd-Frank Act required the...

Vetstein Law Group: Backdated Mortgage Assignment Comes Back To Haunt Foreclosure Lender in Juarez v. Select Portfolio

By Richard D. Vetstein, ESQ Federal Appeals Court Reinstates Borrower's Wrongful Foreclosure Claim Noted Massachusetts foreclosure defense attorney Glenn Russell is on a roll of a lifetime, yesterday [February 12] winning a rare victory on behalf of a borrower at the U.S. Court of Appeals for...

Ballard Spahr LLP: Borrower Can Sue after Three Years To Rescind Mortgage Loan, 3rd Circuit Rules

By the Mortgage Banking Group A borrower can bring a lawsuit seeking rescission more than three years after loan consummation as long as the borrower has sent a written notice of rescission within the three-year period, the U.S. Court of Appeals for the Third Circuit has ruled. In its February...

Ballard Spahr LLP: CFPB Issues Guidance on Mortgage Servicing Transfers

by the Mortgage Banking Group The Consumer Financial Protection Bureau has issued guidance warning residential mortgage servicers and subservicers that CFPB examiners will be looking carefully at their compliance with federal law and focusing on specific areas related to servicing transfers. Bulletin...

Troutman Sanders LLP: CFPB Will Supervise Real Estate Mortgage Loan Servicing Transfers

By John C. Lynch, David N. Anthon, Jason E. Manning, and Maryia Y. Jones On February 11, 2013, the Consumer Financial Protection Bureau (CFPB) issued a bulletin (Bulletin) detailing its plans to closely supervise loan servicing transfers and enforce federal and state law compliance in connection with...

State Net Capitol Journal Legislative Updates: Oregon May Expand Foreclosure Mediation Program

BUSINESS: The OREGON House approves SB 558A, a bill that expands the foreclosure mediation program lawmakers created last year to apply to foreclosures pursued by lenders in courts. It moves to Gov. John Kitzhaber (D) for review (PORTLAND OREGONIAN). ENVIRONMENT: The CONNECTICUT Senate approves...

State Net Capitol Journal Legislative Updates: New Foreclosure and Mortgage Relief Laws in Oregon and Florida

GOVERNORS IN BRIEF: FLORIDA Gov. Rick Scott (R) signed SB 1852, legislation that will distribute $200 million to pay for various mortgage relief programs to help Sunshine State residents harmed in the real estate collapse. The money is part of the state's $8.4 billion cut of the $25 billion settlement...

Ballard Spahr Legal Alert: Uncertainty Remains Under CFPB's Proposed Changes to Prohibition on Financing Credit Insurance Premiums

The CFPB has proposed changes to the Regulation Z prohibition on financing credit insurance premiums (Section 1026.36(i)) [ enhanced version available to lexis.com subscribers ], as part of several new proposed amendments to the mortgage rules it adopted in January 2013. The prohibition was one of the...

Troutman Sanders LLP: CFPB Releases Updated Examination Procedures for Mortgage Lenders and Servicers

By David N. Anthony , John C. Lynch , Alan D. Wingfield , Virginia Bell Flynn , Jarrod F. Loadholt On August 15, 2013, the CFPB released updated examination procedures for mortgage lenders and servicers. The updated examination procedures reflect mortgage origination rules issued by the CFPB up...

State Net Capitol Journal – September 16, 2013; Budget & Taxes: Fracking Fizzles In Pennsylvania

Budget & Taxes FRACKING FIZZLES IN PA: A little over two years ago Pennsylvania Gov. Tom Corbett (R) famously pledged to make his state "the Texas of the natural-gas boom." But that boom, fueled by the extraction of natural gas from shale, or fracking, has gone bust. In 2010, the...

HOLA Does Not Preempt Fraud Claims against Mortgage Loan Servicer, California District Court Rules

The Southern District of California recently held that claims against a mortgage loan servicer are not preempted by the Home Owners Loan Act (HOLA) when they rely on "general allegations of misrepresentation" and are only "incidental" to the servicer's lending practices. The...

Federal Agencies Propose New Federal Flood Insurance Regulations

The Federal Deposit Insurance Corporation recently approved for release joint proposed regulations to implement provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 (the Act). The proposal would amend the Flood Disaster Protection Act of 1973 (FDPA) requirements relating to the escrow...

One Bank’s $4 Billion Litigation Loss Cuts All Banks’ Third Quarter Earnings. Can You Say JPMorgan Chase?

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $36.0 billion in the third quarter of 2013. That’s a lot of money, but it also is a $1.5 billion (3.9 percent) decline from the $37.5 billion in profits that the...

Bank of America Settles Remaining Mortgage Repurchase Claims with Freddie Mac for $404 Million

Bank of America has reached an agreement with the Federal Home Loan Mortgage Corporation (Freddie Mac) to resolve all remaining representations and warranties claims for residential mortgage loans sold to Freddie Mac through the end of 2009. Under terms of the agreement, Bank of America will pay Freddie...

Credit Suisse Sued Over Sale of More than $10 Billion in Mortgage Backed Securities

The State of New Jersey has filed a lawsuit against Credit Suisse Securities (USA) LLC and two of its affiliates alleging that they offered more than $10 billion in residential mortgage backed securities trusts for sale while misrepresenting the risks involved in the investments and failing to disclose...

If You Thought that JPMorgan Chase Was Finished Settling, Think Again. Now, It Pays $614 Million to Resolve More Mortgage Loan Charges

JPMorgan Chase has reached yet another settlement with federal prosecutors. Now, it will pay $614 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans submitted for insurance coverage and guarantees by the Department...

Short Sale Sellers May Face Huge Tax Bill In 2014

Congress Fails To Extend Mortgage Forgiveness Debt Relief Act for 2014 The ringing of the New Year may not have been a welcome sound to distressed homeowners who were not able to complete short sales by the close of 2013. Unfortunately, Congress failed to extend the December 31, 2013 expiration...

Nevada Reaches Its Own Settlement Over Alleged “Robosigning" Mortgage Charges

Nevada has reached a settlement with Lender Processing Services, Inc. (“LPS”), now known as Black Knight Financial Services, over allegations of the alleged “robosigning” of mortgage documents. The settlement resolves the state’s civil action alleging that LPS violated the...

Court of Appeals Rejects Attempted Restriction of “Mortgage Banker” Priority Provision

On February 20, 2014, the Wisconsin Court of Appeals issued an opinion interpreting the meaning of “mortgage banker” under Wis. Stat. § 224.71(3) [ version available to lexis.com subscribers ] and finding that a mortgage holder was entitled to the priority afforded under Wis. Stat. §...

Enfeoff This

Judge (J): We’re here on a motion by BailMeOutBanc for summary judgment in its foreclosure action against Lender Liability Equities LLC. It’s hard to imagine a more straightforward motion. Counsel: what’s the defense? Borrower’s Counsel (BC): Your Honor, there is a fatal defect...

Maine Supreme Court Decision Limits Scope of MERS' Ability to Assign Mortgages

On July 3, 2014, the Maine Supreme Judicial Court issued a ruling in Bank of America, N.A. v. Greenleaf , 2014 ME 89 (Me. July 3, 2014), [ enhanced version available to lexis.com subscribers ], significantly affecting the ability of Mortgage Electronic Registration System, Inc. (MERS) to assign mortgage...

Pennsylvania Amends Mechanics’ Lien Law to Protect Home Owners from Double Jeopardy and Clarify Priority Given to Open Ended Mortgages

By Marc J. Felezzola On July 9, 2014, Governor Tom Corbett signed into law legislation amending Pennsylvania’s Mechanics’ Lien Law of 1963 (the current Mechanics’ Lien Law in Pennsylvania). The stated primary purpose of the amendments is to protect homeowners who pay the prime contractor...