The Alabama Supreme Court recently issued a major published decision on circumstances in which a residential borrower can challenge a mortgage foreclosure sale. In Littlefield v. Smith, the court elevated the bona fide purchaser doctrine to central importance, holding that it limits the grounds for borrowers to bring many post-sale challenges if a third
State Law Developments
Insurers and Financial Institutions Face Increasing Scrutiny from States in the ESG Debate
In just a couple of years, “ESG” (environmental, social and governance) has gone from an obscure acronym to a term regularly bandied about in the news, as insurers and financial institutions face legal scrutiny into their investing practices.
A little more than a year ago, we addressed the trend of laws that divest state assets…
The Battle Over Mortgage Escrow Accounts: A New Stage in the Preemption Fight for National Banks?
The Supreme Court has asked the solicitor general to weigh in on an issue that could affect lenders and borrowers alike: whether the National Bank Act (NBA) trumps state laws that require lenders to pay interest on mortgage escrow accounts. The request, which follows the Supreme Court’s previous denial of a request to review a…
New York Finalizes Commercial Lending Disclosure Regulations
As the regulatory scrutiny facing commercial finance providers continues to increase, many have been closely monitoring developments in state-level disclosure requirements. The New York Commercial Finance Disclosure Law (CFDL), which was originally enacted in 2020, stands out as the most comprehensive commercial disclosure law to date. And with the release of the final regulations on…
California Prepares to Add New Student Loan Servicing Regulations
The California Department of Financial Protection and Innovation (DFPI) recently issued a Notice of Modification to Proposed Regulations and published the newly modified proposed regulations to amend its student loan servicing regulations. Among other things, the modified regulations would expand the definition of “income share agreement,” impose additional rules related to responding to a borrower’s…
We Wish You a Happy Thanksgiving as We Count Our Blessings
As we all hit the grocery store for that forgotten cranberry sauce and send a few last urgent work emails, we hope everyone is able to be with friends and family this Thanksgiving. Here at Bradley, we are counting our blessings and looking back at another remarkable year. We are thankful for being able to…
The Countdown Is on for Factors, MCAs, and Other Commercial Financing Providers to Comply with California’s Commercial Disclosure Law, and the Deadline Is Sooner Than You Think
In 2018, California became the first state to pass a commercial finance disclosure law (CDL) requiring certain commercial finance companies to make consumer-style disclosures to financing recipients. The CDL was the catalyst for the passage of similar laws in Utah, Virginia, and New York, and the introduction of commercial disclosure legislation in many other states…
Georgia Passes Historic Mortgage Licensing Law
On May 2, 2022, Georgia Gov. Brian Kemp signed SB 470, which amends provisions of Georgia’s banking laws relating to the denial or revocation of a mortgage license or registration due to certain felony convictions. SB 470 will reduce the impact on mortgage companies as a result of Georgia’s existing prohibition on the employment of…
State Bank Regulations Become New Front in the Fossil Fuel Wars
West Virginia recently became the second state to enact financial regulations designed to ward off efforts to deny fossil fuel companies access to banking services – but it looks like it may not be the last. On March 30, 2022, West Virginia Senate Bill 62 became law, requiring that all branches of state government cease…
New Mexico Governor Signs Bill to Impose 36% Rate Cap and Tough Anti-Evasion Provisions
Beginning next year, New Mexico will join a handful of other states (including, among others, California, Illinois, and Colorado) setting stringent interest rate caps on consumer loans. House Bill 132, which Gov. Michelle Lujan Grisham signed on March 1, 2022, will slash the annual percentage rate (APR) applicable to loans made under New Mexico’s…