Jeff Novel

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 […]

The Consumer Financial Protection Bureau (“CFPB”) has a new complaints database.  In accordance with its Financial Policy Statement issued on March 19, 2015, the CFPB has started publishing consumer complaint narratives.  There are currently over 8,400 narratives in the database which the CFPB started collecting in March of this year and new complaints are added […]

As previously noted in this blog, in PlainsCapital Bank v. Martin, No. 13-0337, 2015 WL 1477904 (Tex. March 27, 2015), the Texas Supreme Court ruled that lenders can use a sales price received subsequent to a foreclosure sale, as well as their carry costs, to determine the fair market value of a property at the […]

Loans are renewed for a number of reasons.  But when a borrower has an outstanding judgment lien, lenders must be sure that any renewal does not constitute an advance under the Texas Business & Commerce Code that will subordinate the lender’s security interest in collateral to the judgment creditor’s lien. The Texas Business & Commerce […]

In Kaymark v. Bank of America, No. 14-1816 (3d Cir. April 7, 2015), the Third Circuit held that a borrower can state a claim for violation of the Fair Debt Collection Practices Act (“FDCPA”) when a foreclosing lender alleges incorrect fees as part of a foreclosure complaint.  The upshot of this ruling is that a […]

Section 51.003 of the Texas Property Code provides that when a foreclosure sale results in a deficiency, any person against whom recovery is sought may request that the court in which a deficiency lawsuit is pending determine the fair market value of the property as of the date of the foreclosure sale.  If the court […]

Beginning in 2010, numerous lawsuits were filed against automated teller machine (“ATM”) operators in Texas asserting violations of the Electronic Funds Transfer Act (“EFTA”).  The EFTA protects consumer accounts established primarily for personal, family or household purposes.  During the time period at issue in these lawsuits, the EFTA required ATM operators to notify consumers when […]

With the 2015 tax filing season upon us, it is important that bankers understand their reporting and filing obligations under the federal income tax laws upon discharge of debt.  Generally, for debt that was forgiven during 2014, a creditor should have filed a Form 1099-C by February 28, 2015 if the form was sent by […]

Practitioners usually state that the limitations period for bringing suit on a promissory note is four years.  This view is based on Texas Civil Practice and Remedies Code § 16.004(a)(3) which provides that a person must bring suit on an action for debt not later than four years after the day the cause of action […]

The Texas Constitution details the required terms and conditions of home equity loans and the rights and obligations of borrowers and lenders on such loans.  Homeowners who have either entirely repaid their home loans or who have accumulated equity in their homestead may apply for a loan against that equity as long as the home […]