Jonathan D. Jaffe

Firm/Organization: Mayer Brown

Blogs: Consumer Financial Services Review, Funds & Investment Management Law Blog

Latest Articles

California Legislature Declares that Mortgage Debt Is Regulated under the State’s Debt Collection Law

By Jonathan D. Jaffe, Costas “Gus” Avrakotos & Daniel Pearson

October 16, 2019

For many years it was unclear whether mortgage debt was covered under the California Rosenthal Fair Debt Collection Practices Act (the “Rosenthal Act”), which is California’s corollary to the federal Fair Debt Collection Practices Act (“FDCPA”). That issue was resolved on October 7, 2019, when California Governor Gavin Newsom signed into law legislation that expressly includes “mortgage debt” within the Rosenthal Act’s definition of “consumer credit.” Senate Bill 187 (“SB 187”), which is effective January…

Consumer Financial Services Review

Happy New Year! California Legislation Addresses Financial Services Industry in 2019 and Beyond

By Jonathan D. Jaffe, Melissa L. Richards, CMB & Evan Sippel-Feldman

December 29, 2018

The California legislature was active in 2018, enacting several new requirements and provisions applicable to the financial services industry. Those requirements include an important and comprehensive privacy regime (the California Consumer Privacy Act of 2018, or CCPA), which establishes new protections for personal information that covered commercial enterprises collect. The CCPA becomes effective January 1, 2020, with implementing regulations due July 1, 2020. However, many new California provisions become effective on January 1, 2019, including new…

Consumer Financial Services Review

California Enacts TILA-Like Requirements for Business-Purpose Loans

By Kris D. Kully, David L. Beam, Jonathan D. Jaffe, Steven M. Kaplan, Jeffrey P. Taft, Eric T. Mitzenmacher & Evan Sippel-Feldman

October 8, 2018

New California legislation will impose disclosure requirements, similar to those under the federal Truth in Lending Act, on commercial-purpose loans of $500,000 or less, including arrangements such as factoring, merchant cash advances, and certain assignments of accounts and receivables. The disclosures will generally include the total cost of the financing, expressed both as a dollar amount and an annualized rate, with variations applicable to different types of transactions. While the requirements will not apply to…

Funds & Investment Management Law Blog

Proposal to Require New Disclosures by California Finance Lenders

By Kristine M. Koren & Jonathan D. Jaffe

June 27, 2018

The California Legislature is considering amendments to the California Financing Law (the “CFL”), which requires most non-bank commercial lenders active in California to be licensed by the State’s Department of Business Oversight. Senator Steve Glazer proposed new measures earlier this year that would require CFL lenders to provide standardized price disclosures to small-business borrowers (currently defined as loans of $500,000 or less). The bill would apply to both closed-end and open-end commercial loans, as well…

Consumer Financial Services Review

CFPB’s New Regulatory Inquiry Process: Ask and Ye Shall Receive?

By Jonathan D. Jaffe

August 24, 2017

The Consumer Financial Protection Bureau recently announced a change in the way financial institutions, service providers, and others can obtain informal guidance on regulatory issues from the CFPB’s staff. It appears that the only change is the access vehicle to use when posing questions. In the past, the CFPB preferred that questions be posed via email to CFPB_reginquiries@cfpb.gov. Now persons wanting answers to regulatory questions can use a new online form (https://reginquiries.consumerfinance.gov/). The new form…

Consumer Financial Services Review

Carpe Per Diem Redux — California Clarifies How to Document Compliance

By Jonathan D. Jaffe

May 5, 2017

After leaving residential mortgage lenders guessing for many years, the California Department of Business Oversight (“DBO”) finally provided the industry with some guidance on the documentation licensees may use to verify compliance with the state’s per diem statutes. The California per diem statutes (Financial Code § 50204(o) and Civil Code § 2948.5) prohibit a lender from requiring a borrower to pay interest for more than one day prior to the disbursement of loan proceeds, subject to…

Consumer Financial Services Review

Carpe Per Diem Disclosure — California Department of Business Oversight Clarifies its Position

By Jonathan D. Jaffe

April 18, 2017

The California Department of Business Oversight* (“DBO”) appears to have backed off of its pronouncement late last year that lenders may not deliver per diem disclosures to all borrowers. California’s infamous per diem statutes (Fin. Code § 50204(o); Civ. Code § 2948.5) have been the basis of scores of licensing agency examination findings and actions for many years now, resulting in significant refunds and penalties. In fact, just last week the DBO announced that a lender…

Consumer Financial Services Review

CFPB to Publish Servicing Rule; Requirements Effective October 19, 2017

By Melanie H. Brody, Jonathan D. Jaffe, David A. Tallman, Keisha L. Whitehall Wolfe, Jeremy McLaughlin & Christopher E. Shelton

October 18, 2016

The Consumer Financial Protection Bureau (CFPB) has offered its new mortgage servicing rule for public inspection today, meaning it is scheduled to be published in the Federal Register on October 19, 2016. The CFPB informally released the rule on its website in August. The effective date of the rule is tied to its publication date, so the bulk of its requirements (with some exceptions) will take effect in 12 months, on October 19, 2017. To learn…

Consumer Financial Services Review

Treasury Department Issues Marketplace Lending Report, Outlines Possible Regulatory Path

By David L. Beam, Jonathan D. Jaffe & Eric T. Mitzenmacher

May 18, 2016

Some segments of the marketplace lending business model (a subset of the growing FinTech industry sometimes referred to as peer-to-peer lending), might become subject to additional regulation if the federal and state regulatory agencies take to heart the results of a recent Treasury Department report.…

Consumer Financial Services Review

The Fix Is In – The CFPB Says It Will Correct Deficiencies in TRID

By Jonathan D. Jaffe

April 30, 2016

The Consumer Financial Protection Bureau (CFPB or Bureau) has come under criticism recently for its heavy handed approach to regulation, including “regulation by enforcement”. Perhaps partially in response to those criticisms, and certainly in response to a January 2016 industry trade group request to the CFPB to publish unofficial guidance in the Federal Register, the CFPB issued a letter to the residential mortgage lending industry on April 28, 2016. In that letter the Bureau…

Jonathan D. Jaffe

California Legislature Declares that Mortgage Debt Is Regulated under the State’s Debt Collection Law

Happy New Year! California Legislation Addresses Financial Services Industry in 2019 and Beyond

California Enacts TILA-Like Requirements for Business-Purpose Loans

Proposal to Require New Disclosures by California Finance Lenders

CFPB’s New Regulatory Inquiry Process: Ask and Ye Shall Receive?

Carpe Per Diem Redux — California Clarifies How to Document Compliance

Carpe Per Diem Disclosure — California Department of Business Oversight Clarifies its Position

CFPB to Publish Servicing Rule; Requirements Effective October 19, 2017

Treasury Department Issues Marketplace Lending Report, Outlines Possible Regulatory Path

The Fix Is In – The CFPB Says It Will Correct Deficiencies in TRID

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