In SEC v. Citigroup Global Markets Inc.,___ F.3d __, no. 11-5227-cv (June 4, 2014) (“Citigroup II”), a three-judge panel of the Second Circuit affirmed the SEC’s ability to negotiate settlements without obtaining specific factual admissions from the settling defendants. The Court reasoned that there is a distinction between trials and…
On May 22, the CFPB released its fourth “Supervisory Highlights” publication, giving financial services providers a preview of the CFPB’s future enforcement priorities. This edition drew attention to regulatory compliance in nonbank financial entities like debt collectors, payday lenders, and consumer credit reporting firms. While those industries have been subject…
On January 22, New York Governor Andrew Cuomo announced that in its first action, the newly created Student Protection Unit issued thirteen subpoenas to student debt relief companies as part of an investigation into allegations of improper fees and misleading advertising. The Student Protection Unit is a division within the…
On January 22, 2014, a federal judge in California denied J.C. Penney Corporation’s motion to dismiss for lack of subject matter jurisdiction following the plaintiff’s rejection of an offer of judgment. Maier v. J.C. Penney Corp., Inc., No. 3:13-cv-00163, slip op. (S.D. Cal. Jan. 22, 2014). The plaintiff has filed a…
On January 10, 2014, new CFPB amendments to Regulation X (implementing the Real Estate Settlement Procedures Act) and Regulation Z (implementing the Truth in Lending Act) became effective, imposing new requirements on loan servicers to respond to inquiries from residential mortgage loan borrowers within statutorily-specified time periods. An understanding of…
The future of the Government Sponsored Enterprises might be uncertain, but one aspect of their existence is becoming more clear: courts have repeatedly ruled that Fannie Mae and Freddie Mac are exempt from real property transfer taxes. And those decisions likely benefit servicers too. The cases deal with the exemptions…
On January 28, 2014, a federal judge indicated that home loan borrowers in California may bring breach of contract claims against their loan servicer if the servicer offers a permanent loan modification agreement that differs from what was advertised in communications before the borrowers entered into the prerequisite Trial Period…