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

Mortgage Lenders & Servicers

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11th Circuit Applies Totality-of-the-Circumstance Analysis to Judicial Estoppel

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Mortgage Lenders & Servicers
On September 18, in an en banc review, the Court of Appeals for the Eleventh Circuit overruled, in part, seminal cases Barger v. City of Cartersville, 348 F.3d 1289 (11th Cir. 2003) and Burnes v. Pemco Aeroplex, Inc., 291 F.3d 1282 (11th Cir. 2002), adopting a totality-of-the-circumstances analysis when facing questions of judicial estoppel.  In… Continue Reading

CFPB Proposes Modifications to Home Mortgage Law to Protect Borrowers’ Privacy

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On September 20, the Consumer Financial Protection Bureau issued proposed policy guidance that would modify a mortgage disclosure law in an effort to protect applicants’ and borrowers’ privacy. In 2015, the CFPB finalized changes to the Home Mortgage Disclosure Act (“HMDA”), which requires lenders to report and disclose to the public certain information about their… Continue Reading

FTC Says Its Focus Must Be on Instances of Real Harm to Consumers

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
In a September 19 speech at the Federal Communications Bar Association in Washington, FTC Acting Chairman Maureen K. Ohlhausen stated that the Commission should focus on addressing instances of “substantial consumer injury” in deciding which cases to pursue.  Echoing (intentionally or not) the language of the Supreme Court’s foundational decision in Spokeo, Inc. v. Robins,… Continue Reading

CFPB’s Latest Supervisory Highlights Provides Valuable Statistics and Insight on Enforcement Efforts

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
The Consumer Financial Protection Bureau recently released its Summer 2017 Supervisory Highlights, which summarizes the agency’s supervisory activities during the first half of this year. Looking to the numbers.  From January through June, the CFPB’s nonpublic supervisory activities led to restitution payments that totaled approximately $14 million, and public enforcement actions that netted an additional… Continue Reading

Join Us for a Complimentary Webinar on September 12: A Review of Recent Fair Housing Act Municipality Cases and other Municipality Claims

Posted in ALL CFS Blog Entries, CFS Events, Mortgage Lenders & Servicers
On Tuesday, September 12, from 2-3 p.m. ET, Join Troutman Sanders for a webinar discussing the recent cases brought by cities and counties against mortgage originators and servicers under the Fair Housing Act, the Supreme Court’s decision in Bank of America Corp. v. City of Miami, 581 U.S. –, 137 S.Ct. 1296 (2017), and other theories… Continue Reading

Seventh Circuit Holds That Debt Collector Cannot Avoid Liability Under FDCPA Despite Strict Compliance With Controlling Precedent

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Mortgage Lenders & Servicers
In a surprising decision involving a vigorous and scathing dissent, the Seventh Circuit ruled that a debt collector was liable under the Fair Debt Collection Practices Act even when it followed the law that was in effect at the time the alleged violation took place.  This alarming ruling raises an obvious question:  Is compliance with… Continue Reading

CFPB Warns Older Consumers of Risks of Reverse Mortgage

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers
Financial professionals often recommend a reverse mortgage loan as a way to delay claiming Social Security benefits.  A reverse mortgage, federally insured through the Federal Housing Association’s (“FHA”) Home Equity Conversion Mortgage Program (“HECM”), allows homeowners age 62 and older to borrow against the equity in their homes and defer payment of the loan until they… Continue Reading

Seventh Circuit Holds Rule 67 Tender of Full Relief Does Not Moot TCPA Class Action

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Mortgage Lenders & Servicers
In Campbell-Ewald Co. v. Gomez, 136 S.Ct. 663 (2016), the Supreme Court held that an unaccepted offer of full relief under Rule 68 to a named plaintiff was insufficient to moot class claims.  However, the Supreme Court expressly left open the possibility of a “different result if a defendant deposits the full amount of the… Continue Reading

Texas Man Pleads Guilty to Felony Charge for Role in Foreclosure Rescue Scheme

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
The Department of Justice announced that Bruce Kevin Hawkins, 52, of Desoto, Texas, recently pled guilty in a federal court in Texas regarding his role in a foreclosure rescue scheme that ran from February 2012 to January 2013 and bilked over $240,000 from homeowners facing foreclosures.  Hawkins pled guilty to one count of mail fraud… Continue Reading

Pending Changes to Federal Bankruptcy Rules Could Negatively Impact Residential Mortgage Lenders

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers
The U.S. Supreme Court has approved changes to the Federal Bankruptcy Rules that, if they become effective, will result in important alterations to the filing of proofs of claim by residential mortgage lenders in Chapter 7, 12 and 13 cases. A proposed change to Bankruptcy Rule 3002 will shorten the time within which a creditor… Continue Reading

TCPA Is Not Dead Yet – Court Trebles Eight Figure TCPA Award While World Awaits ACA Decision

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors, Mortgage Lenders & Servicers
While the world eagerly awaits the D.C. Circuit’s forthcoming ruling on the proper interpretation of the Telephone Consumer Protection Act (TCPA), a recent federal court ruling imposing tens of millions of dollars of liability is a reminder of the risks associated with outbound calling activities and of the stakes at play in the ACA International… Continue Reading

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

Troutman Sanders Welcomes Amy Pritchard Williams

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
Troutman Sanders LLP announced today that Amy Pritchard Williams has joined the firm’s Financial Services Litigation practice in the Charlotte office. She previously practiced at K&L Gates LLP. Williams’ practice focuses on financial services litigation and bankruptcy. She represents financial institutions in connection with False Claims Act actions, internal investigations and government investigations. She also… Continue Reading

DOJ Brief Opposing CFPB Brings More Uncertainty

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On March 17, the U.S. Department of Justice submitted a brief to the D.C. Circuit asserting that the Consumer Financial Protection Bureau’s single-director structure violates the Constitution’s separation of powers in the CFPB v. PHH Corporation case. CFPB’s Single Director Structure The Democratic-controlled 111th Congress created the CFPB as part of the Dodd-Frank Act in… Continue Reading

DOJ Issues New Guidance on Corporate Compliance Programs

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Mortgage Lenders & Servicers
On February 8, 2017, the Criminal Division of the U.S. Department of Justice quietly issued new guidance on corporate compliance programs for companies implicated in misconduct. Specifically, the Criminal Division posted a set of “important topics and sample questions that the Fraud Section has frequently found relevant in evaluating a corporate compliance program” to the… Continue Reading

Join Us on February 9 for a Complimentary Webinar on Redlining and Fair Lending

Posted in ALL CFS Blog Entries, Auto Finance, CFS Events, Mortgage Lenders & Servicers
Join Troutman Sanders Partners James W. Stevens and Alan D. Wingfield on Thursday, February 9 at 12 p.m. ET for a complimentary webinar to discuss current trends and outlook for the key fair lending issues of redlining and disparate impact. Specific topics of discussion include the basics of federal regulators’ theories and methodologies in assessing redlining… Continue Reading

Attorney and Mortgage Relief Scam Operator Banned from Debt Relief Business

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
An operator of a mortgage relief scam and an attorney agreed to court orders banning them from the debt relief business in order to resolve allegations brought by the FTC that they swindled millions of dollars from financially distressed homeowners. According to the FTC’s Complaint, in the scheme, Damian Kutzner and four attorneys operating as… Continue Reading

California Supreme Court Finds Two Payday Lenders Not Immune From State Lending Laws

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On December 22, the California Supreme Court in Owen v. Miami Nation Enterprises, held that payday lending companies failed to prove by a preponderance of the evidence that they were “arms of” Indian tribes. Therefore, the lenders were not immune from complying with a California state lending law.  In its decision, the Court reaffirmed well-settled law… Continue Reading

Join Us for the ACI Consumer Finance Class Actions & Litigation Conference in Miami

Posted in ALL CFS Blog Entries, Auto Finance, CFS Events, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders partners John Lynch and Chad Fuller will be featured moderators and speakers, respectively, at the American Conference Institute’s 27th National Conference on Consumer Finance Class Actions and Litigation on January 24, 2017 at the W Miami Hotel. John will moderate the  second portion of the panel discussion,… Continue Reading

CFPB Files Four Lawsuits Against Lenders for Violation of Truth In Lending Act

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On December 19, the Consumer Financial Protection Bureau filed four nearly identical lawsuits against lenders based in the Commonwealth of Virginia.  Copies of the complaints can be found here, here, here, and here.  The complaints allege that the defendants violated the Truth in Lending Act and Consumer Financial Protection Act by charging borrowers for interest,… Continue Reading

Troutman Sanders Partner John Lynch Awarded Law 360 MVP Award

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers
Troutman Sanders is pleased to announce that partner John Lynch has been recognized as an MVP in Consumer Protection by Law 360. The series recognizes MVPs in a variety of categories, including Consumer Protection. According to Law360, MVPs have distinguished themselves from their peers by securing hard-earned successes in high-stakes litigation, complex global matters and record-breaking… Continue Reading

Ninth Circuit Holds Trustees Performing Non-Judicial Foreclosures Are Not Debt Collectors Pursuant to FDCPA

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Mortgage Lenders & Servicers
The Ninth Circuit recently broke from other circuit courts across the country and held that a trustee to a security agreement is not a debt collector pursuant to the Fair Debt Collection Practices Act.  The case is Vien-Phuong Thi Ho v. Recontrust Co., N.A., No. 10-56884, 2016 U.S. App. LEXIS 18836 (9th Cir. Oct. 19,… Continue Reading

California Court Grants Final Approval of $1.5 Million TCPA Robocall Settlement

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Mortgage Lenders & Servicers
On November 7, the United States District Court for the Southern District of California granted final approval of the class settlement in Stemple v. QC Holdings, Inc., No. 3:12-cv-01997 (S.D. Cal.).  The plaintiff in the case alleged that QC Holdings, a check-cashing and short-term loan company, negligently and willfully violated the Telephone Consumer Protection Act… Continue Reading

Blue Shield and SQM Defeat TCPA Putative Class Action Following Spokeo

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers
U.S. District Judge Cathy A. Bencivengo recently dismissed a plaintiff’s TCPA putative class claim due to lack of standing required under Article III.  In Anton Ewing v. SQM US, Inc. et al., No. 3:16-cv-1609-CAB-JLB (S.D. Cal., Sept. 29, 2016), the plaintiff alleged that he received a single survey call made by SQM on Blue Shield’s… Continue Reading