Millions of homeowners have signed up for a forbearance under the CARES Act, which gives homeowners with a federally-backed mortgage loan the right to obtain a temporary reduction or suspension of mortgage payments by way of a forbearance. During the
Latest from Mortgage Crisis & Financial Services Watch
An Opportune Time For Financial Institutions to Review Their Fair Lending Procedures
At the beginning of his term, President Biden declared that his administration would make it a policy to eliminate “racial bias and other forms of discrimination in all states of home-buying and renting.” Recently, this policy statement has manifested itself
Mortgage Brokers File Class Action Against Leading Wholesale Mortgage Lender
United Wholesale Mortgage (UWM), the nation’s largest wholesale mortgage lender, announced on March 4, 2021, that it would no longer do business with mortgage brokers who also worked with Rocket Mortgage (the online loan shopping and application tool offered by
NFTs: Unique Assets Spur Legal Questions of First Impression
Non-fungible tokens (NFTs) have gotten a lot of media attention of late, with breathless reports of multi-million dollar purchases of items one might never have expected to command such staggering sums. The objects sold have included digital artworks (such as
The SPAC Era Is Upon Us, and Related Litigation Is on The Rise
Special Purpose Acquisition Companies (SPACs) have been in such widespread use over the last year or two that an uptick in SPAC-related litigation appears inevitable. Indeed, the increase is already beginning. After a brief overview of SPACs, this article will
Lehman Brothers Holdings Inc. Files New Adversary Proceedings Against Mortgage Brokers
If you thought Lehman Brothers Holdings Inc. (“LBHI”) was done suing lenders as a result of its settlements with RMBS trustees years ago, think again. LBHI recently filed a new wave of lawsuits against approximately 60 defendants, mostly mortgage brokers,
The Fed Raises Concerns about Corporate Debt
We have previously written about the possible economic and litigation implications of mushrooming corporate debt. Now, the Federal Reserve has flagged some of those same concerns.
In its semi-annual monetary policy report to Congress last Friday, the Fed expressed anxiety
ViacomCBS Seeks to Recover COVID-19-Related Losses from Insurer
Business interruption insurance claims keep coming, cutting across a broad array of industries. The entertainment and media sectors are certainly not immune from pandemic-related losses. Last month, ViacomCBS became the latest entertainment entity to file such a claim, suing its
Corporate Debt: Still Growing, and Still a Concern
As the pandemic began unfolding about a year ago, we wrote about the risk that the high volume of corporate debt might make it the next market bubble to burst. The issuance of corporate debt only accelerated in 2020 compared
Student Loan Defaults May Spark SLABS Litigation
U.S. student loan borrowers owe approximately $1.7 trillion on their student loans. About 92% of that amount consists of federal student loans (debt owed to the U.S. government), with the remainder owed to a growing market of private lenders. Despite