As more Americans install photovoltaic power generation and storage systems on their homes, journalists have reported incidents of alleged fraud and other forms of misconduct by solar system installers, finance companies, and other related parties. The media attention has correlated
Financial Services Perspectives
Regulatory, compliance, and litigation developments in the financial services industry
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Court Rules That Financed Residential Solar System Is a Consumer Good, Not a Fixture
Whether a solar system is a “fixture” sounds like a mundane legal issue – but it has significant implications for the residential solar industry and for the financing of residential solar systems. If a system is regarded as a “fixture”…
Fannie Mae Issues Fair Servicing Best Practices Guide
This week, in line with the CFPB’s ever-increasing focus on fair lending, Fannie Mae issued a Fair Servicing Best Practices Guide to promote “servicer awareness of fair servicing best practices.” Taking a big picture approach, the guide states that…
FHA Announces New Loss Mitigation Payment Supplement Option
Amidst record-level interest rates, on February 21, 2024, the Federal Housing Administration (FHA) announced a new loss mitigation option, the Payment Supplement, to aid struggling borrowers. The Payment Supplement will bring a borrower’s mortgage current, as well as provide a…
CFPB Invokes “Dormant” Authority and Unveils First Public Supervisory Designation of a High-Risk Nonbank Installment Lender
Nearly two years ago, in April 2022, the CFPB issued a press release announcing its intent to start exercising its authority to examine non-bank financial services institutions that the CFPB has “reasonable cause to determine pose risks to consumers.” The…
The False Claims Act in 2023: A Government Enforcement Update
This past year, the False Claims Act (FCA) continued to be a key tool for the Justice Department and whistleblowers to bring suits against companies, including those in the financial services sector. The Justice Department secured 543 FCA settlements and…
A Closer Look at the CFPB’s “Enhanced” Supervisory Appeals Process
On February 16, 2024, the Consumer Financial Protection Bureau (CFPB) announced what it heralded as a significant update to its Supervisory Appeals Process. The first of its kind since 2015, this revision introduced a seemingly more inclusive and flexible approach…
FHA Makes Rule Changes for Branch Registration
Based upon “the mortgage industry’s evolution over time, the advancement of technology, and due to no longer needing to maintain several branch offices to conduct FHA business nationwide,” the FHA has adopted a new rule regarding branch registration.
Under the…
Banks and Credit Unions Utilizing Ineffective Chatbots May Risk Violating Federal Law
In an October 2023 advisory opinion, the Consumer Financial Protection Bureau (CFPB) put large banks and credit unions on notice that the use of chatbots and other technologies could increase the risk of violating federal law if those services…
Alabama Supreme Court Narrows Grounds to Challenge Mortgage Foreclosure Sales
The Alabama Supreme Court recently issued a major published decision on circumstances in which a residential borrower can challenge a mortgage foreclosure sale. In Littlefield v. Smith, the court elevated the bona fide purchaser doctrine to central importance, holding…