Seventh Circuit Explains Attorney’s Fees Do Not Satisfy the Requisite Actual Damage Element for…

In Moore v. Wells Fargo Bank, N.A., No. 18-1564 (7th Cir. Nov. 7, 2018), the mortgagor defaulted on two separate loan modifications. Following the second default the mortgagee filed for judicial foreclosure. After foreclosure judgment was entered and shortly before the foreclosure sale of the property was about to occur,…

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Ninth Circuit Revives Borrower’s Action For Equitable Enforcement of Recession Under TILA By Applying…

In Hoang v. Bank of America, N.A., No. 17-35993 (9th Cir. Dec 6, 2018), in connection with the refinance of the borrower’s mortgage, the originating bank failed to give the borrower a notice of the right to recession as required under Section 1635 of the federal Truth in Lending Act…

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Interagency Statement Clarifies that Supervisory Guidance Has No Force of Law

On September 11, 2018, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau (the “agencies”) issued a joint statement clarifying the role of supervisory guidance. As intended by the…

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CFPB Issues Final Rule Implementing The GLBA’s Annual Privacy Notice Exception

On August 9, 2018, the Bureau of Consumer Financial Protection (“CFPB”) issued a final rule implementing section 503(f) (15 USC § 6803(f)) of the Gramm-Leach-Bliley Act (“GLBA”), which provides an exception from the requirement to deliver annual privacy notice to customers. The final rule also prescribes the timing requirement for…

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Illinois Amends its Mortgage Licensing Act to Exempt Independent Loan Processing Entities From Licensing…

On May 23, 2018, Illinois enacted an amendment, HB4404 (“Amendment”), to the Residential Mortgage License Act of 1987 (“RMLA”) and created a new exemption for independent loan processing entities from the RMLA licensing requirement, as permitted by the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008. The…

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Congress Passes a Mixed Bag of Mortgage Industry Regulatory Relief and Consumer Protection

On May 24, 2018, the Economic Growth, Regulatory Relief, and Consumer Protection Act (“Act”), S. 2155, which was passed by Congress on May 22, 2018, was signed into law. The Act represents the first major rewrite of the financial regulations legislated under the Dodd–Frank Wall Street Reform and Consumer Protection…

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The CFPB Finally Closes the TRID Rule’s Black Hole

On April 26, 2018, the CFPB issued a final rule amending the provisions applicable to providing revised disclosures for the purpose of resetting tolerances applicable for determination of good faith estimation of closing costs under TILA-RESPA Integrated Disclosure rule that came into effect on October 3, 2015, aka Know Before…

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CFPB Issues a Final Rule Replacing the Single-Billing-Cycle Exemption With a Single-Statement Exemption Easing…

On March 8, 2018, the CFPB issued a final rule amending the provisions of Regulation Z mortgage servicing rules, issued August 4, 2016 (“2016 Servicing Rule”), by replacing the single-billing-cycle exemption in the 2016 Servicing Rule with a single-statement exemption that would apply regardless of when in the billing cycle…

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In re PHH Saga: En Banc DC Court of Appeals Restores Favorable RESPA Decision…

On January 31, 2018, the full Court of Appeals for the DC Circuit issued its awaited decision in PHH Corporation, et al v. CFPB. The majority of the court’s ruling focused primarily on the issue of constitutionality of the CFPB structure, finding it to be constitutional. Nevertheless, as explained below,…

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CFPB Will Not Assess Penalties Related to 2018 HMDA Data Errors

On December 21, 2017, the CFPB announced that it does not intend to require Home Mortgage Disclosure Act (“HMDA”) data resubmission unless data errors are material or assess penalties with respect to errors in HMDA data collected as of January 1, 2018 and reported in 2019. According to the statement…

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