As the government revives its Paycheck Protection Program (PPP) with hundreds of billions of dollars in additional loans available to small businesses, there are fresh signs that government fraud investigations and whistleblower litigation related to the loan program are ramping up. DOJ’s first-ever settlement of violations of the civil False Claims Act related to the PPP highlight the scrutiny facing the PPP and risks for borrowers just as the PPP enters a new phase following…

Consumer Finance Legal Report

Portal Opens for New PPP Loans With New SBA Guidance and Application Forms

By Cassy Hoover

January 12, 2021

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The Small Business Administration (SBA) announced that they will begin accepting loan applications from community financial institutions for new “first draw” Paycheck Protection Program (PPP) loans beginning on January 11 and for “second draw” PPP loans beginning on January 13. Other lenders will be allowed to submit loan applications shortly thereafter. New guidance and loan application forms issued by the SBA and U.S. Department of Treasury provide clarifications and some changes as to who may be eligible for this…

Consumer Finance Legal Report

Portal Opens for New PPP Loans With New SBA Guidance and Application Forms

By Cassy Hoover

January 12, 2021

Consumer Finance Legal Report

Consumer Financial Protection Bureau Issues Two Final Rules Changing General QM Standard and Creating Seasoned QM Standard

By Robert T. Yusko

January 11, 2021

The Consumer Financial Protection Bureau (CFPB) released two final rules amending the General Qualified Mortgage loan definition in Regulation Z and creating a new “Seasoned QM” loan category in Regulation Z. The General QM Final Rule replaces the current requirement for the General QM loans that the consumer’s debt-to-income ratio (DTI) not exceed 43 percent with a limit based on the loan’s pricing. The Seasoned QM Final Rule creates a new category of Seasoned QMs…

Consumer Finance Legal Report

New COVID-19 Relief Law Includes Limited Bankruptcy Protections Regarding PPP Loans

By Cassy Hoover

January 5, 2021

The latest COVID-19 relief legislation provided some additional aid and clarity for a select group of debtors and left many other questions unanswered. While most of the attention was directed to restarting the PPP payments and other benefits to individuals, the law makes changes to the Bankruptcy Code as well. Small business debtors (plus family farmers and Chapter 13 debtors) can now obtain PPP loans while in bankruptcy while other Chapter 11 debtors cannot. Landlords…

Consumer Finance Legal Report

Another Round of PPP Loans Approved by Congress, With Yet Additional Changes to the Program

By Cassy Hoover

January 5, 2021

Long-awaited action by Congress provides a refresh on the Paycheck Protection Program, allowing for new loans. Changes to the terms of PPP loans could benefit borrowers and additional lending ability includes the option for existing PPP borrowers to obtain a second loan. Click here to read the full update.…

Consumer Finance Legal Report

Consumer Financial Protection Bureau And Multiple States Enter Into Settlement With Nationstar Mortgage, LLC For Alleged Unlawful Servicing Practices

By Kristine E. Kruger

December 7, 2020

The Consumer Financial Protection Bureau (CFPB) announced today that it has entered into a settlement with Nationstar Mortgage, LLC, d/b/a “Mr. Cooper,” one of the nation’s largest mortgage servicers and the largest non-bank mortgage servicer in the United States. The bureau’s complaint claims that Nationstar engaged in unfair and deceptive acts and practices in violation of the Consumer Financial Protection Act of 2010, violated the Real Estate Settlement Procedures Act (RESPA), and violated the Homeowners…

Consumer Finance Legal Report

The CFPB Proposes to Create a New Category of Seasoned Qualified Mortgages

By Robert T. Yusko

October 30, 2020

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The Consumer Financial Protection Bureau (CFPB) recently issued a proposed rule to create a new category of Seasoned Qualified Mortgages (QMs). The proposal seeks to “encourage safe and responsible innovation in the mortgage origination market” by allowing an alternative pathway to the qualified mortgage safe harbor. By way of background, the Dodd-Frank Act amended the Truth in Lending Act (TILA) to establish ability-to-repay (ATR) requirements for most residential mortgage loans. TILA specifies the factors a…

Consumer Finance Legal Report

The CFPB Proposes Amendments to the Qualified Mortgage Definition in Regulation Z and Extends the GSE Patch

By Robert T. Yusko

October 27, 2020

The Consumer Financial Protection Bureau (CFPB) recently proposed certain amendments to the General Qualified Mortgage (QM) definition in Regulation Z and issued a filing rule extending the expiration of the Government-Sponsored Enterprise (GSE) Patch as a “temporary qualified mortgage” until the mandatory compliance date of the final amendments to the General QM loan definition. By way of background, the Dodd-Frank Act amended the Truth in Lending Act (TILA) to establish ability-to-repay (ATR) requirements for most…

Consumer Finance Legal Report

The Conference of State Bank Supervisors Proposes Regulatory Prudential Standards for Nonbank Mortgage Servicers

By Kristine E. Kruger

October 12, 2020

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The Conference of State Bank Supervisors (CSBS) recently requested public comment on proposed regulatory prudential standards for nonbank mortgage servicers. The proposal seeks to address concerns about rapid market share growth, nonbank institution size, and nonbank mortgage servicers’ financial stability and governance. The goals of the proposal are to: Provide better protection for borrowers, investors, and other stakeholders in the occurrence of a stress event, in which adverse circumstances affecting one or a series of companies—or…

Consumer Finance Legal Report

A Critical Resource On Consumer Finance Legal Developments

Blog Authors

DOJ’s First False Claims Act Settlement Against PPP Borrower Signals Robust Fraud Enforcement Ahead

Portal Opens for New PPP Loans With New SBA Guidance and Application Forms

Portal Opens for New PPP Loans With New SBA Guidance and Application Forms

Consumer Financial Protection Bureau Issues Two Final Rules Changing General QM Standard and Creating Seasoned QM Standard

New COVID-19 Relief Law Includes Limited Bankruptcy Protections Regarding PPP Loans

Another Round of PPP Loans Approved by Congress, With Yet Additional Changes to the Program

Consumer Financial Protection Bureau And Multiple States Enter Into Settlement With Nationstar Mortgage, LLC For Alleged Unlawful Servicing Practices

The CFPB Proposes to Create a New Category of Seasoned Qualified Mortgages

The CFPB Proposes Amendments to the Qualified Mortgage Definition in Regulation Z and Extends the GSE Patch

The Conference of State Bank Supervisors Proposes Regulatory Prudential Standards for Nonbank Mortgage Servicers

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