Consumer Financial Services Law Monitor

Consumer Financial Services Law Monitor

monitoring the financial services industry to help companies navigate through regulatory compliance, enforcement, and litigation issues

Jason E. Manning

Jason E. Manning

Blog Role:
Editor – Mortgage Lenders and Servicers

CFS Value:
Jason specializes in representing banks and loan servicers in class action and individual cases.

Subscribe to all posts by Jason E. Manning

New WVCCPA Amendments are Enacted by Governor Justice

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Mortgage Lenders & Servicers
Senate Bill No. 563 amends several provisions of the West Virginia Consumer Credit Protection Act (WVCCPA). The Bill passed the West Virginia Senate and the House of Delegates with high approval margins, and was signed into law by Governor Jim Justice on April 21, 2017. These amendments to the WVCCPA will have an impact on… Continue Reading

CFPB Introduces New Protections for Borrowers

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On August 4, 2016, the CFPB issued its final mortgage servicing rule pursuant to Regulation X of the Real Estate Settlement Procedures Act (RESPA) and Regulation Z of the Truth in Lending Act (TILA). The final rule provides greater foreclosure protections to borrowers and requires further transparency between borrowers and mortgage servicers. The final rule… Continue Reading

California’s Yvanova Decision Signals New Wave of Borrower Claims in Mortgage Litigation

Posted in ALL CFS Blog Entries, Featured Posts, Mortgage Lenders & Servicers
On February 18, the California Supreme Court issued a potentially far-reaching decision in Yvanova v. New Century Mortgage Corp., in which it ruled that certain mortgage borrowers have standing to sue for wrongful foreclosure based on a void assignment of the promissory note or deed of trust.  Although the Court limited the scope of its… Continue Reading

Fourth Circuit Affirms Dismissal of Claims that Loan in Excess of Property Value is Unconscionable under the West Virginia Consumer Credit Protection Act

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers
On January 15, 2016, the Fourth Circuit issued a published decision affirming summary judgment to the defendant national bank on plaintiff’s unconscionable contract claim under WVCCPA 46A-2-121. Plaintiff relied on a retroactive appraisal in an attempt to prove the loan was “predatory” because “the loan amount was in excess of the property value.” The ruling… Continue Reading

CFPB Releases TRID Guidance for Construction Loans

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers
The CFPB released a resource intended to help lenders understand and implement the TILA-RESPA integrated disclosures (“TRID”) when extending construction loans.     The CFPB’s factsheet provides that construction loans are subject to TRID requirements as long as they are closed-end consumer credit transactions secured by real property.  The only exception is those construction loans that are… Continue Reading

Mortgages Continue to Rank High in CFPB’s Monthly Complaint Report

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers
On January 28, the Consumer Financial Protection Bureau released its monthly consumer complaint report, highlighting consumer complaints about financial services such as debt settlement, check cashing, money orders, and credit repair.  The CFPB began accepting complaints as soon as it opened its doors in July 2011.   As of January 1, 2016, the CFPB had handled… Continue Reading

Illinois Supreme Court Expands the Definition of “Consumer” Under TILA for Purposes of Right to Rescind

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers
On September 24, the Illinois Supreme Court reversed trial and appellate courts’ decisions and held that land trusts are considered “consumers” for purposes of exercising a right to rescind the loan transaction under the federal Truth in Lending Act (TILA). At issue in this case was a reverse mortgage transaction in which the borrower was… Continue Reading

U.S. Government Sues Five Mortgage Lenders for False FHA Claims

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On September 28, the U.S. government filed a lawsuit alleging that a purported charitable “counseling fund,” five mortgage lenders, and their principals defrauded the United States and various banks insured by the Federal Deposit Insurance Corporation in actions that resulted in millions of dollars of mortgage losses as well as the payment of over $5.6… Continue Reading

Court of Appeals Revives Breach of Contract Claim Based on Alleged Violation of HUD Regulations

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
In Covarrubias v. CitiMortgage, Inc ., the plaintiff brought a lawsuit against CitiMortgage, claiming it improperly foreclosed on her home by failing to comply with U.S. Department of Housing and Urban Development regulations incorporated into her deed of trust.  Specifically, she claimed CitiMortgage failed to conduct, or make a reasonable effort to conduct, a face-to-face… Continue Reading

CFPB Fines Mortgage Servicer $1.5 Million for Failing to Honor Loan Modifications after Service Transfers

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On July 30, the Consumer Financial Protection Bureau announced that it reached an agreement with Residential Credit Solutions, Inc., a national mortgage servicing company, whereby the mortgage loan servicer agreed to pay $1.5 million in restitution to borrowers and a $100,000 civil penalty.  The CFPB alleged that the Residential Credit Solutions had failed to honor… Continue Reading

CFPB Delays By Two Months the Effective Date of The “Know Before You Owe” Mortgage Disclosure Rule

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
The Consumer Financial Protection Bureau issued a final rule that delays the effective date of the Know Before You Owe mortgage disclosure rule to October 3, 2015.  This news follows on the announcement by the CFPB on June 24 of its proposed amendment to the rule, also known as the TILA-RESPA Integrated Disclosure rule (“TRID”),… Continue Reading

CFPB Releases Results of Study on Reverse Mortgage Advertisements

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
Authored by D. Kyle Deak Today the Consumer Financial Protection Bureau released the results of a study on reverse mortgage advertisements.  The study was based upon personal interviews conducted in November and December 2014 with 59 homeowners aged 62 or older in Chicago, Los Angeles, and Washington, D.C. concerning 97 print, radio, online, and television… Continue Reading

WVCCPA Amendments Signed into Law by Governor Tomblin

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On Tuesday, March 31, 2015, Governor Tomblin signed into law Senate Bill No. 542 amending several sections of the West Virginia Consumer Credit Protection Act (WVCCPA). The bill will be effective on June 12, 2015, however, certain provisions of the bill become applicable only to actions filed after September 1, 2015. The amendments will have… Continue Reading

Freddie Mac Will Require Re-Modifications of Previously Modified Loans

Posted in Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On March 17, 2015, Freddie Mac issued an update to its Single-Family Seller/Servicer Guide (“Guide”) requiring servicers to offer additional modifications on previously modified step-rate mortgages.  This requirement will take effect July 1, 2015. By requiring loan re-modifications, Freddie Mac is seeking to address what has been on everyone’s mind for a while—the expiring HAMP… Continue Reading

West Virginia Legislature Passes Amendments to WVCCPA

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, State Attorneys General, CFPB, & FTC
On Saturday, March 14, 2015, the West Virginia House passed Substitute Bill No. 542 amending several sections of the West Virginia Consumer Credit Protection Act (WVCCPA). The West Virginia Senate had previously passed the Substitute Bill on March 4, 2015. The bill is now awaiting signature from the governor. If signed into law, the amendments… Continue Reading

Maryland Seeks to Adopt Heightened Mortgage Servicing Transfer Regulations

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
Through March 2, 2015, the State of Maryland is accepting comments on its proposed regulations of mortgage servicing transfers that include over 5,000 mortgages, whether as a single transfer or as a total at the end of a calendar year even if no single transfer was for 5,000 or more loans.  Although many of the… Continue Reading

West Virginia Legislature Considering Amendments to its Consumer Credit Protection Act

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Mortgage Lenders & Servicers, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On February 23, legislation was introduced in the West Virginia Senate to amend the state’s Consumer Credit Protection Act.  Senate Bill 542 would revise sections 46A-2-121, -122, -125, -126, and -128, sections 46A-5-101 and -106, and add new section 46A-5-107. Among these proposed changes, the Bill seeks to: Modify section 46A-2-121(1) regarding a claim for… Continue Reading

CFS Bloggers Present on TILA Loan Originator Compensation Rule

Posted in ALL CFS Blog Entries, CFS Events, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
At the invitation of Thompson Reuters Legal Insights and Analytics, attorneys Maryia Jones, Jason Manning, and Paige Fitzgerald delivered a presentation on TILA’s loan originator compensation rule (the “Rule”), which remains one of the CFPB’s enforcement priorities and a focus of plaintiffs’ bar in private lawsuits.  The presentation was delivered to an audience of mortgage… Continue Reading