Financial Services Perspectives

Regulatory, compliance, and litigation developments in the financial services industry

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Financial Services Perspectives

Is the Bank Open? Federal Agencies Clarify Regulatory Requirements for Banking Hemp

By J. Hunter Robinson, James W. Wright Jr. & Whitt Steineker

December 5, 2019

On December 3, several federal agencies issued guidance (Guidance) that, by its terms, “provide[s] clarity” regarding “the regulatory requirements under the Bank Secrecy Act (BSA) for banks providing services to hemp-related businesses.” Hemp proponents hope this additional clarity will encourage hesitant financial institutions to begin serving the hemp industry. The key takeaway from the Guidance – which was issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the…

Financial Services Perspectives

First Circuit Holds that Parents’ Tuition Payments for Adult Children Are Fraudulent Transfers

By James Bailey & Elizabeth R. Brusa

November 27, 2019

Recently, the First Circuit held that a parent’s tuition payments on behalf of an adult child do not benefit the parent’s bankruptcy estate, and a Chapter 7 trustee may therefore claw the payments back as fraudulent transfers. The concept underlying fraudulent transfer law is that, if a person cannot pay his debts in due course, it is fraudulent to transfer his assets to another person with a motive to avoid paying his debts. This concept…

Financial Services Perspectives

Georgia Publishes 11th-Hour Temporary Authority Rule Effective November 24, 2019

By Amy Magdanz Rose & Robert S. Niemi

November 21, 2019

It has been almost 18 months since the passage of the Economic Growth, Regulatory Relief, and Consumer Protection Act or (as most people in the industry refer to it) the “Temporary Authority Act.” Section 106 of the act allows qualified applicants for mortgage loan originator (MLO) licenses to utilize temporary authority to continue to originate as a mortgage loan originator prior to being licensed by a state regulator. This situation would occur when an MLO…

Financial Services Perspectives

Uncertainties Surround Rising Agricultural Debt and Default Rates in the U.S.

By Kaylee Beauchamp

November 20, 2019

The United States and China reached the first phase of a trade deal on October 11th, postponing the next round of tariffs that President Trump planned to impose on Chinese goods the following week. Under the trade deal, which is still being negotiated, China agreed to buy billions of dollars’ worth of American agricultural products annually. China’s agreement to purchase U.S. agricultural products was likely at the center of negotiations for this trade deal because…

Financial Services Perspectives

5th Circuit Joins the Growing Crowd Holding that Private Student Loans May be Dischargeable in Bankruptcy

By Keith S. Anderson & Alexandra Dugan

November 4, 2019

The Fifth Circuit’s recent decision in Crocker v. Navient Solutions is a stark reminder to for-profit student lenders and servicers that bankruptcy caselaw continues to evolve relating to discharge. In Crocker, the Fifth Circuit joined the trend of cases holding that private student loans are dischargeable in bankruptcy. More specifically, the court affirmed a bankruptcy decision by the Southern District of Texas that private educational loans are not statutorily excepted from discharge, absent undue hardship…

Financial Services Perspectives

The Split Widens: Third Circuit Joins Minority View Regarding Whether Secured Creditor Has Affirmative Obligation to Return Collateral to Debtor Upon Bankruptcy Filing

By Elizabeth R. Brusa & Alexandra Dugan

October 31, 2019

The circuit courts continue to wrestle over the duties imposed by the Bankruptcy Code’s automatic stay on creditors concerning turnover of a debtor’s impounded vehicle. Is a creditor required to automatically turn over the vehicle as soon as the bankruptcy petition is filed, or can it retain possession while awaiting an order of the bankruptcy court adjudicating turnover in an adversary proceeding? As we previously wrote, five circuits, including the Seventh Circuit in City…

Financial Services Perspectives

HUD and DOJ Release Memorandum on the Application and Enforcement of FHA Violations Involving the False Claims Act

By F. Wendell Allen, James W. Wright Jr. & Austin Holland

October 29, 2019

In an effort to provide clarity and certainty to Federal Housing Administration (FHA) approved lenders, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Justice (DOJ) jointly issued a memorandum of understanding (MOU) on October 28, 2019, describing broad guidelines about how HUD and DOJ will coordinate using the False Claims Act (FCA) to enforce alleged violations of FHA requirements. More specifically, the interagency MOU describes coordination efforts between the…

Financial Services Perspectives

NCUA’s Appraisal Threshold Increase to $1 Million for Commercial Real Estate Loans Set to Go into Effect

By Grant A. Premo

October 18, 2019

The National Credit Union Administration’s (NCUA) new appraisal threshold rule for commercial real estate loans will go into effect on October 22, 2019. Under the NCUA’s new appraisal rule, credit unions will not be required to obtain an appraisal for commercial real estate transactions less than $1 million. The new rule sharply increases the appraisal threshold, which the NCUA previously set at $250,000. As a basis for the increase, the NCUA noted that the…

Financial Services Perspectives

Navigating ADA Compliance Issues in an Online World

By Alexandra Dugan & Anne R. Yuengert

October 17, 2019

The landscape remains murky as to whether and how Title III of the Americans with Disabilities Act (ADA) applies to websites. As the financial services industry moves increasingly and inexorably from a “bricks and mortar” presence to a virtual environment, these issues are likely to only become more prominent. With differing authority from courts across the U.S. and minimal guidance from the Department of Justice and financial services regulators, financial services companies, particularly fintechs, must…

Financial Services Perspectives

CFPB Issues Final HMDA Rule Offering Relief to Smaller Institutions and Credit Unions

By Christopher K. Friedman & Benjamin William Perry

October 17, 2019

The Consumer Financial Protection Bureau (CFPB) issued its long-awaited final rule amending the Home Mortgage Disclosure Act (HMDA) on Thursday, October 10. These changes promise to bring some measure of relief to smaller financial institutions and credit unions. Prior to this new rule, the CFPB did not require the collection and reporting of HMDA data for institutions originating less than 500 open-ended lines of credit until January 1, 2020. The new rule provides that this…

Financial Services Perspectives

Regulatory, compliance, and litigation developments in the financial services industry

Blog Authors

Is the Bank Open? Federal Agencies Clarify Regulatory Requirements for Banking Hemp

First Circuit Holds that Parents’ Tuition Payments for Adult Children Are Fraudulent Transfers

Georgia Publishes 11th-Hour Temporary Authority Rule Effective November 24, 2019

Uncertainties Surround Rising Agricultural Debt and Default Rates in the U.S.

5th Circuit Joins the Growing Crowd Holding that Private Student Loans May be Dischargeable in Bankruptcy

The Split Widens: Third Circuit Joins Minority View Regarding Whether Secured Creditor Has Affirmative Obligation to Return Collateral to Debtor Upon Bankruptcy Filing

HUD and DOJ Release Memorandum on the Application and Enforcement of FHA Violations Involving the False Claims Act

NCUA’s Appraisal Threshold Increase to $1 Million for Commercial Real Estate Loans Set to Go into Effect

Navigating ADA Compliance Issues in an Online World

CFPB Issues Final HMDA Rule Offering Relief to Smaller Institutions and Credit Unions

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