The Federal Trade Commission (FTC) just published a request for public comments on the economic impact of and continuing need for the Trade Regulation Rule Concerning Preservation of Consumers’ Claims and Defenses, commonly known as the “Holder Rule.” In addition, the FTC has requested public comments on any developments in case law that should be
Bankruptcy Proof of Claim Form Gets a Makeover
Several of the Official Bankruptcy Forms will be replaced on December 1, 2015. For creditors, the most notable changes will be to two forms: the Proof of Claim form, Form 410, and the Mortgage Proof of Claim Attachment, Form 410A. These changes reflect an effort by the Bankruptcy Courts to elicit a clear and complete
ALTA Introduces New CPL Form with Major Potential Negative Implications for the Financial Services Industry
In April, we posted about the significant protection afforded mortgage lenders and servicers as part of closing protection letters including recent judicial interpretations providing critical indemnity to lenders for “actual loss” in relation to closing instruction violations and fraud. Recently, we learned that title insurers are issuing a new version of the (Closing Protection
Washington Supreme Court Clarifies Mandatory Mediation Program Exemption – Holders Score a Washington Victory
The servicer community recently scored an important victory in an opinion issued by the en banc Washington Supreme Court. The decision—Brown v. Wash. State Dep’t. of Commerce, —clarifies the scope of the small lender exemption to the Washington Foreclosure Fairness Act (FFA) mandatory mediation program (codified at RCW 61.24.166). Further supplementing the victory,
FHA Withdraws Proposed Rule Establishing Insurance Claim Deadline
Recently, the Federal Housing Administration (FHA) withdrew part of a proposed rule that sought to establish a maximum time period within which an FHA approved mortgagee must file a claim with FHA for insurance benefits. The decision came in response to public comments expressing concern over the proposed rule’s implementation, which many agreed would ultimately
The Four Cornerstones: Regulatory Focus Sharpens on Student Loan Servicing Industry
We have previously written about recent regulatory focus on the student loan servicing industry. In particular, we discussed the issuance of a 151-page report issued by the Consumer Financial Protection Bureau (CFPB) titled “Student Loan Servicing: Analysis of Public Input and Recommendations for Reform,” as well as the “Joint Statement of Principles on
Fifth Circuit Court of Appeals Upholds MERS’ Authority to Assign Mortgages
The Fifth Circuit Court of Appeals recently handed Mortgage Electronic Registration Systems, Inc. (MERS) another victory against challenges to MERS’ authority to assign a mortgage. In Ferguson v. Bank of New York Mellon, the Fifth Circuit ultimately held that MERS was a proper beneficiary of the subject deed of trust and, therefore, had the
CFPB Proposes Rules to Limit Arbitration Agreements in Consumer Financial Products
Last week, the CFPB announced two proposals related to the inclusion clauses that require arbitration to resolve all future disputes (“pre-dispute arbitration agreements”) in consumer financial products. The first proposal would effectively ban pre-dispute arbitration agreements that prohibit disputes brought by a class or other group of individuals. The second proposal would require
CFPB Releases Report on Student Loan Servicing and Recommendations for Reform
Last week, the CFPB released a report summarizing the results of a two-month public inquiry into student loan servicing practices. At the same time, the CFPB, in conjunction with the U.S. Department of Education and the U.S. Department of the Treasury, issued a Joint Statement of Principles on Student Loan Servicing, which “offer[s] a
Marketing Services Agreements Pose Grave Compliance Risk – Mortgage and Real Estate Industry on Notice
The CFPB issued Compliance Bulletin 2015-05 (Bulletin) today, which sets forth its position concerning the use of Marketing Services Agreements (MSAs) by mortgage companies and settlement service providers. Importantly, the CFPB does not make new law in its Bulletin. MSAs are not prohibited by the Bulletin. However, the clear signal from the CFPB is that