Josh Dhyani

Josh Dhyani works with clients to provide litigation services, licensing, and compliance guidance pertaining to complex state and federal regulatory issues. Josh has guided financial services clients through complex litigation and regulatory matters from trial to appeal in a wide range of issues. He also has experience in assessing and processing mortgage-related industry licenses for entities working in the financial services space, including mortgage lenders, servicers, brokers, consumer financial companies, and debt collectors. Josh has also assisted clients in managing regulatory hurdles involving mergers, changes in control persons, and other corporate moves. View articles by Josh.

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OCC, FDIC Issue Long-Awaited Valid-When-Made “Madden Fix”

Recently, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) issued final rules designed to resolve the uncertainty created by the Second Circuit Court of Appeals’ decision in Madden v. Midland Funding, 786 F.3d 246 (2d Cir. 2015). In Madden, the court called into doubt the valid-when-made doctrine, … Continue Reading

CFPB Issues No-Action Letter Template for an Online Loss Mitigation Platform

By Michael Gordon, Jonathan R. Kolodziej, Jason R. Bushby and Josh Dhyani on May 27, 2020 Posted in CFPB, COVID-19 (Coronavirus), Federal Agencies, Loss Mitigation, Mortgage Servicing

On May 22, 2020, the CFPB issued a No-Action Letter (NAL) Template to a software company utilizing an internet-based platform for submission and processing of loss mitigation applications. Mortgage servicers may use the NAL Template to apply for NALs if they wish to implement the web-based loss mitigation platform. The CFPB also issued a statement … Continue Reading

Maryland Court of Appeals Bars Confessed Judgment Clauses in Consumer Contracts

By Josh Dhyani, Andrew J. Narod and Marc A. Nardone on February 18, 2020 Posted in Consumer Protection Act, Debt Collection, Maryland, State Law Developments

A recent decision from the Maryland Court of Appeals provided somewhat surprising new guidance on the permissibility of confessed judgment clauses in consumer contracts. In Goshen Run Homeowners Association, Inc. v. Cisneros, the Court concluded that Maryland’s Consumer Protection Act (the “Maryland CPA”) prohibits all confessed judgment clauses in all consumer contracts. In the underlying … Continue Reading

California’s Proposed “Mini-CFPB” May Increase Scrutiny of Auto Lenders and Other Industry Participants

By Andrew J. Narod and Josh Dhyani on January 30, 2020 Posted in Automobile Finance, CFPB, FinTech, Payment Systems, Small-Dollar Lending, State Law Developments

Earlier this month, California Gov. Gavin Newsom revealed plans to create a state version of the federal Consumer Financial Protection Bureau (CFPB) as part of the state’s proposed 2020-2021 budget. According to the governor’s Budget Summary, “[t]he federal government’s rollback of the CFPB leaves Californians vulnerable to predatory businesses and leaves companies without the clarity … Continue Reading

The CFPB (Yes, the CFPB!) Offers New Compliance Tools for Innovation

By Jennifer L. Galloway, Michael M. Aphibal and Josh Dhyani on September 23, 2019 Posted in CFPB, Compliance, FinTech, Installment Lending, Payday Lending, Short-Term Loans, Small-Dollar Lending, Unsecured Lending

Companies that offer innovative consumer financial products and services have new tools to help them stay in compliance with federal consumer financial laws. In a refreshing twist from prior policy, the Consumer Financial Protection Bureau (CFPB) announced last week that it had revamped its No-Action Letter Policy and released a Compliance Assistance Sandbox and a … Continue Reading

Big Picture Loans Lands Big Win for Tribal Lenders in Sovereign Immunity Case

By Josh Dhyani and Brian R. Epling on August 8, 2019 Posted in Banking, Class Actions, Compliance, Installment Lending, Licensing, Litigation Developments, Short-Term Loans, Small-Dollar Lending, Unsecured Lending

In a recent decision by the Fourth Circuit, Big Picture Loans, LLC, an online lender owned and operated by the Lac Vieux Desert Band of Lake Superior Chippewa Indians, a federally recognized Indian tribe (“Tribe”), and Ascension Technologies, LLC, the Tribe’s management and consultant company successfully established that they are each arms of the Tribe … Continue Reading

FTC Imposes $110 Million Fine Against Payment Facilitator and Its Executives

By Graham W. Gerhardt and Josh Dhyani on July 18, 2019 Posted in Credit Card, FTC, Identity Theft / Privacy, Payday Lending, Short-Term Loans, Small-Dollar Lending, Unsecured Lending

Payment processor/facilitator Allied Wallet, its CEO, and two other corporate officers, recently agreed to settle Federal Trade Commission (FTC) charges that they assisted or knowingly processed fraudulent transactions for merchant-clients. This action indicates that enforcement actions against payment processors are alive and well, despite the FTC’s previously announced end of “Operation Chokepoint,” which, among other … Continue Reading

DOJ’s FCPA Corporate Enforcement Policy Creates Greater Certainty for Companies

By Stephen R. Spivack, Erin K. Sullivan, Brad Robertson and Josh Dhyani on December 6, 2017 Posted in Compliance, FCPA, Federal Agencies

The Foreign Corrupt Practices Act of 1977 (FCPA) makes it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. On November 29, 2017, Deputy Attorney General Rod Rosenstein announced the addition of an FCPA Corporate Enforcement Policy to the U.S. Attorneys’ Manual, … Continue Reading