On July 9, 2021, President Biden issued an executive order that could spell changes for banking regulation. The Executive Order’s stated purpose is to promote a “fair, open, and competitive marketplace” and the Order asserts that “in the financial-services sector,...
In late 2020, the Office of the Comptroller of the Currency (OCC) issued the “true lender” rule, which was immediately met with criticism. Shortly thereafter, several State Attorneys General, led by New York Attorney General Letitia James, sued the OCC seeking to...
Letters of credit are a common payment mechanism in international trade that normally allow a buyer to substitute the financial integrity of a stable credit source such as a bank for his own. For the seller of goods, a letter of credit functions as a bank’s...
Late last year, we wrote about the issuance of the “true lender” rule by the Office of the Comptroller of the Currency (OCC), which went into effect in December 2020. Prior to the issuance of that rule, federal courts had differed as to whether third-party lenders...
The United States Court of Appeals for the Fifth Circuit recently held that a private settlement on favorable terms for the plaintiff does not qualify as a “successful action” triggering the fee shifting provisions of the Fair Debt Collection Practices Act (“FDCPA”)...
In Pittner v. Castle Peak 2012-1 Loan Trust (Memo & Order April 14, 2021), the United States District Court for the District of Massachusetts awarded summary judgment to Defendants, Castle Peak 2012-1 Loan Trust and Selene Finance LP, on Plaintiff’s claims of...
In AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011), the United States Supreme Court ruled that the Federal Arbitration Act preempts state laws that prohibit consumer contracts from disallowing class-wide arbitration. On May 5, 2016, however, the Federal...
Two recent decisions have clarified the scope and effect Section 131(g)(1) of the Truth-in-Lending Act's ("TILA"), which requires that a borrower be notified within 30-days of the sale, transfer, or assignment of a mortgage loan to a new owner. 15 U.S.C. § 1641(g)(1)....
In a recent Minnesota case, the Eighth Circuit Court of Appeals held that where a bank accepted and paid two checks despite missing endorsements, the jilted payee had no viable claim because it ultimately suffered no loss. Northeast Bank v. The Hanover Ins. Group, 796...
The statute providing borrowers with a right to cure mortgage payment defaults before acceleration and foreclosure can occur imposes no deadline on completion of foreclosure proceedings once commenced, according to two very recent Massachusetts decisions. G.L. c. 244,...
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