FINRA’s 2023 Priorities and Examination Findings was the topic of discussion at SIFMA’s first monthly luncheon of 2023. Reed Smith sponsored this luncheon and provided a full report from the panel presentation by Robert Cook (President and CEO of FINRA)
Consumer Finance Spotlight
Salient insights on key enforcement and legal trends pertaining to the consumer financial services sector
A few additional thoughts… on the regulatory response in the wake of the FTX bankruptcy
We recently had a chance to speak to The Independent and Forbes for articles on the impending regulatory response to the FTX bankruptcy, which will undoubtedly affect the entire crypto sector. A couple of additional thoughts worth mentioning are as follows:…
No junk data: CFPB Advisory Opinion fleshes out “maximum possible accuracy” for purposes of deciding FCRA violations
By Jenny Lee & Austin Skelton
A new CFPB advisory opinion drills down on what consumer reporting agencies must do to address discrepancies in consumers’ credit reports, in order to protect consumers and remove obstacles to them getting credit. And while the Bureau gives specific examples…
Lender and Servicer Defenses to FDCPA Claims
Where plaintiffs assert civil claims alleging violations of the Fair Debt Collection Practices Act (the “FDCPA”), 15 U.S.C. §§ 1692-1692p, against mortgage lenders and their servicers, the defendants should assess the claims to determine whether they are subject to immediate…
Second Circuit Withdraws Decision In Wake of TransUnion v. Ramirez and Holds That Plaintiffs Seeking To Form Class For Unrecorded Mortgage Discharges Lack Article III Standing
On November 17, 2021, on its review en banc of its prior decision, the United States Court of Appeals for the Second Circuit changed its course in Maddox v. The Bank Of New York Trust Company, N.A., docket number 19-1774,…
De-Acceleration Notices, Post-Engel
In the wake of the Court of Appeals’ landmark decision in Freedom Mortgage v. Engel, 2021 NY Slip Op 01090 (2021), the Second Department has subsequently followed the guidance in Engel in modifying a lender’s burden in rebutting statute of…
Supreme Court Declares CDC Eviction Moratorium Unconstitutional
Late Thursday evening, the Supreme Court of the United States issued an opinion to reinstate a court order blocking the Centers for Disease Control and Prevention’s (“CDC”) nationwide moratorium on residential evictions.
In March 2020, Congress passed the Coronavirus Aid,…
Agency Director Ousted Immediately Following the Supreme Court’s Ruling that the FHFA’s Structure to be Unconstitutional
In a 7-2 decision, the Supreme Court of the United States ruled that the Federal Housing Finance Agency’s (“FHFA”) statutory structure, which protected its director from being removed from position “only for cause”, violated the Constitution’s separation of powers. Writing…
New Settlement Exhibits CFPB’s Continued Focus on Transparency for Short-Term Loans
The Consumer Financial Protection Bureau (“CFPB”) recently took aim at Driver Loan LLC (the “Company”), a company which frequently offers loans to drivers of ride share services, for the Company’s alleged deceptive practices.[1] In its complaint, the CFPB described…
Strict Foreclosure and Reforeclosure – Options in Foreclosing on Omitted Parties
“The absence of a necessary party in a foreclosure action leaves that party’s rights unaffected by the judgment and sale, and the foreclosure sale may be considered void as to the omitted party.” 6820 Ridge Realty LLC v. Goldman, 263…