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Lender’s “Boilerplate” Disavowal Dooms Rescission of a Common Loan Modification Agreement

August 23, 2018

Authors

Jim Goldberg

Lender’s “Boilerplate” Disavowal Dooms Rescission of a Common Loan Modification Agreement

August 23, 2018

by: Jim Goldberg

In a case with potentially broad implications, the Sixth Circuit becomes the first federal circuit court to hold that the Truth in Lending Act provides no right to rescind a loan modification agreement entered into with a successor creditor. TILA exempts from rescission “refinancing” transactions with “the same creditor secured by an interest in the same property” but not “refinancing” with a different creditor.

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New Mortgage Servicing Rules for “Successors in Interest”

April 25, 2018

Authors

Chris Dueringer and Alfred Shaumyan

New Mortgage Servicing Rules for “Successors in Interest”

April 25, 2018

by: Chris Dueringer and Alfred Shaumyan

Effective as of April 19, 2018, successors in interest to property secured by mortgage loans that are covered by the Real Estate Settlement Procedures Act (“RESPA”) and Truth In Lending Act (“TILA”) now have certain rights under those acts.

These amendments are part of the Consumer Financial Protection Bureau’s 2016 Mortgage Servicing Rule amendments to RESPA and TILA.  The CFPB issued the new rules

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Legal Risks Associated with Mortgage Loan Officer Compensation

June 9, 2014

Authors

Bryan Cave Leighton Paisner

Legal Risks Associated with Mortgage Loan Officer Compensation

June 9, 2014

by: Bryan Cave Leighton Paisner

How a bank compensates mortgage loan officers can present legal risk for the bank.  Banks need to make sure their compensation practices comply with the federal Fair Labor Standards Act and related state laws, as well as Regulation Z.

Threshold Question: Are Loan Officers Exempt or Non-Exempt?

The exempt / non-exempt status of mortgage loan officers has been heavily-litigated in recent years and has been the subject of several Department of Labor opinion letters.  The inquiry remains very fact-specific and depends on what the loan officers actually do not just on their job descriptions. Relevant questions include:

CFPB Proposes New Amendments to Mortgage Servicing Rules

May 9, 2014

Authors

Amy Thompson

CFPB Proposes New Amendments to Mortgage Servicing Rules

May 9, 2014

by: Amy Thompson

On May 6, 2014, the CFPB issued proposed amendments to the mortgage rules under the Truth in Lending Act (TILA) affecting Regulations Z and X.  The proposed amendments affect the small servicer/small creditor exceptions to the mortgage rules and the “Qualified Mortgage” determination.  The CFPB proposes to partially re-define who may qualify as a “small servicer” under § 1026.41 of Regulation Z (incorporated by cross reference in Regulation X), revise the scope of the nonprofit small creditor exemption from the ability-to-repay rule in § 1026.43(a)(3)(v)(D) of Regulation Z, and establish a limited cure procedure where a creditor inadvertently exceeds

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Sooner or Later, You Might Go Pew

April 24, 2014

Authors

Bryan Cave Leighton Paisner

Sooner or Later, You Might Go Pew

April 24, 2014

by: Bryan Cave Leighton Paisner

For the last few years, the Pew Charitable Trust has been conducting studies of consumer financial services disclosures and urging banks and other financial institutions to adopt simplified disclosure forms. For example, in April 2012, Pew developed a model disclosure form for consumer checking accounts, and Pew reports that 26 major banks have already adopted the form (we are aware of additional banks to have adopted the form). In February 2014, Pew published a similar model disclosure form for prepaid card accounts.

Both of these Pew disclosures are similar to the “Schumer Box” disclosures used for credit cards, though of

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11th Circuit Clarifies the TILA Servicer “Administrative Convenience” Exception

May 24, 2013

Authors

Bryan Cave Leighton Paisner

11th Circuit Clarifies the TILA Servicer “Administrative Convenience” Exception

May 24, 2013

by: Bryan Cave Leighton Paisner

On May 23, 2013, the Eleventh Circuit upheld an Alabama federal court’s dismissal of a proposed class action brought by a mortgage holder who claimed the servicer violated the Truth in Lending Act (“TILA”) by failing to notify her of a transfer in ownership of her mortgage loan, as required by Section 1641(g).  In an unpublished per curium opinion, a three-judge panel in Giles v. Wells Fargo Bank, N.A. (No. 12-15567)  agreed with the lower court that, under TILA’s “administrative convenience” exception,  the servicer, who was assigned an ownership interest in the mortgage loan prior to foreclosing on the

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