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”). […]
Attempts To Collect Time-Barred Debt Provide Fertile Ground For FDCPA Violations In The Fifth Circuit
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 […]
FDIC Encourages Banks to Step up Cyber Security
The Federal Deposit Insurance Corporation (FDIC) is the newest entity in a long line of governmental and corporate interests to voice concern over cybersecurity measures taken by banks and other financial institutions. The FDIC recently published its Supervisory Insights Vol. 12, Issue 2, Winter 2015 Article laying out a framework for enhancing cybersecurity for banks […]
Wyndham, Hyatt, and the FTC’s Top Ten List for Cybersecurity
In light of the recent data breach at Hyatt Hotels, which affected 250 hotels in 50 countries, we thought it timely to discuss the fallout from another hotel data breach: namely, the recent consent order entered in the FTC’s action against the Wyndham hotel chain.[1] This post discusses the Wyndham consent order and FTC guidance […]
GAO Reports Increasing Compliance Burdens on Community Banks
Last week, the Government Accountability Office released a report indicating that the Dodd-Frank Wall Street Reform has imposed increasing compliance burdens on community banks, credit unions, and industry associations. These typically smaller institutions have had to increase staff and dedicate more time and money to training in order to comply with the new rules. Some […]
Texas State-Chartered Banks Face Increased Scrutiny On Cybersecurity Practices In 2016 Bank Exams; Here Are Some Suggestions To Help You Prepare
Texas and federal bank examiners intend to focus more closely on banks’ cybersecurity practices in 2016. The Texas Department of Banking’s September 15, 2015 Industry Notice 2015-8 announced it was “requiring that all banks measure their inherent cyber risks and cybersecurity maturity (preparedness) by December 31, 2015” and “[o]ur examination staff will begin reviewing completed […]
Ninth Circuit holds TILA’s notice of mortgage transfer requirement is not retroactive
Has your bank or other business been sued for violating the Truth In Lending Act’s (“TILA”) requirement for a notice of mortgage transfer based on a mortgage you acquired before May 20, 2009? If so, then a recent Ninth Circuit decision may be helpful. 15 U.S.C § 1641(g), an amendment to the Truth In Lending […]
Fifth Circuit addresses implicit waiver of acceleration and related new Texas statute
A recent Fifth Circuit decision is helpful for lenders seeking to foreclose against a borrower asserting a Texas statute of limitations defense. In Boren et al. v. U.S. National Bank Association, the Borens failed to pay on a home equity note in 2008. 2015 WL 6445721, at *1 (5th Cir. Oct. 26, 2015). In 2009, […]