This blog previously addressed the Consumer Financial Protection Bureau’s (“CFPB”) complaints database. Each week the CFPB receives and publishes thousands of consumer complaints about financial products and services. But what if financial services companies included nondisparagement or similar language in their consumer loan documents prohibiting CFPB complaints or negative online reviews? This sort of language […]
The Consumer Review Fairness Act Impacts Form Consumer Contracts Used by Financial Services Companies.
Attempts To Collect Time-Barred Debt Provide Fertile Ground For FDCPA Violations In The Fifth Circuit
In Daugherty v. Convergent Outsourcing, Inc., the Fifth Circuit Court of Appeals held that a collection letter that is silent as to litigation, but which offers to “settle” a time-barred debt without acknowledging that such debt is judicially unenforceable, can be sufficiently deceptive or misleading as to violate the Fair Debt Collection Practices Act (“FDCPA”). […]
CFPB Finalizes Amendments to Mortgage Servicing Regulations
The Consumer Financial Protection Bureau (“CFPB”) issued its final rule setting forth amendments and clarifications to mortgage servicing regulations on August 4, 2016. The final rule will implement new servicing regulations including the following: Additional foreclosure protection for borrowers. If a borrower becomes current on his or her payments after submitting a prior, complete loss […]
What Conduct By a Lender or Servicer Constitutes Waiver of Acceleration?
In Martin v. Federal National Mortgage Association, No. 15-41104 (5th Cir. Feb. 22, 2016), the Fifth Circuit issued its fourth opinion in recent months rejecting a borrower’s assertion that a mortgage servicer waived acceleration of a loan by engaging in conduct inconsistent with acceleration. The Court noted that Wells Fargo accepted payments only after the […]
Payment at Foreclosure Sale Must Be Made Immediately or Within Reasonable Time.
Jeff Heck (“Heck”) sued CitiMortgage, Inc. (“CitiMortgage”) over CitiMortgage’s failure to allow his purchase of real property at a non-judicial foreclosure sale after Heck successfully bid on the foreclosure property, was given 20 minutes to obtain a cashier’s check, did not return in the allotted time and the property was sold to another buyer. In […]
30 Days And Counting: TRID Disclosure Requirements Effective On October 3, 2015
The new TILA-RESPA Integrated Disclosures (“TRID”) go into effect Saturday, October 3, 2015. Consequently, it is important for lenders to review the new forms and understand the timelines which will govern most consumer lending transactions secured by real property. The TRID disclosure requirements will apply to most closed-end consumer credit transactions secured by real property […]
Warnings From The CFPB On Private Mortgage Insurance
On August 4, 2015 the Consumer Financial Protection Bureau (“CFPB”) issued a compliance bulletin containing warnings on the private mortgage insurance (“PMI”) cancellation and termination procedures contained in the Homeowners Protection Act (“HPA”). The warnings relate to borrower-requested cancellation, automatic termination, final termination, refunds and annual disclosures required under the HPA and should be noted […]
Debt Collectors Must Prove FDCPA Exception For Communications With Third Parties
Under the Fair Debt Collection Practices Act (“FDCPA”), a debt collector can be liable to a debtor for contacting third parties in pursuit of debt unless the communication falls under a statutory exception. One exception permits communication with a third party for the purpose of acquiring location information about a debtor but, even then, prohibits […]
Mortgage Servicers Proceed With Caution: Warning About Communications In Close Proximity To Demands
Mortgage servicers should take note of a recent decision issued by an Illinois District Court. In ruling on a motion to dismiss filed by a mortgage servicer, the Northern District of Illinois held that a transfer letter notifying a borrower that his loan payments would be collected by a new entity was a communication in […]
Texas Debt Collection Act Claims Not Limited To Borrowers
The United States Court of Appeals for the Fifth Circuit recently analyzed the Texas Debt Collection Act (“TDCA”) and reached a conclusion relating to claims under the TDCA that is significant for lenders and mortgage servicers. The court ruled that the TDCA extends beyond the parties to a consumer transaction and that persons other than […]