On April 20, 2020, Colorado Governor Jared Polis laid out an ambitious plan to dramatically reduce the restrictions on personal movement and business operations created by last month’s “Stay-at-Home” Order.[1] Dubbed the “Safer-at-Home” Order, this modification (and others like it
Mortgage Crisis & Financial Services Watch
Business and legal issues affecting Banking, Finance and Lending | Credit | Securities and Investing | E-Commerce
Mortgage Crisis & Financial Services Watch, published by Bilzin Sumberg, focuses on legal developments and issues related to mortgage lending, financial services regulation, and consumer protection in the housing finance sector. The blog covers topics such as mortgage forbearance compliance, fair lending enforcement actions, class action litigation involving mortgage lenders and brokers, regulatory changes affecting financial institutions, and emerging legal challenges in mortgage and real estate finance. It also addresses broader financial services concerns including antitrust matters, government regulations, and the impact of new financial products and technologies on mortgage and lending practices.
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Lawsuits Allege Preferential or Self-Serving Disbursement of PPP Funds by Major Banks
In response to the severe economic disruptions caused by COVID-19, Congress took unprecedented fiscal steps to inject liquidity into the economy. One of Congress’ most significant actions was the CARES Act, which included the $349 billion Paycheck Protection Program (PPP),…
A Resurgence of Residential Mortgage Repurchase Claims on the Horizon
A surge in repurchase claims against mortgage originators may be imminent as aggregators and servicers face nonpayment of debt obligations and liquidity shortfalls resulting from an increase in residential mortgage loans put in forbearance. In the coming weeks, it is…
Residential Mortgage Originators Facing Increasing Pressures In the Midst of the Coronavirus Pandemic
Mortgage loan brokers, correspondents and loan originators (“Originators”) who survived (or, in many cases, are still dealing with) the onslaught of “repurchase/indemnification” claims asserted by loan aggregators and government-sponsored entities (GSEs) (collectively, “Investors”) following the Great Recession are particularly well…
COVID-19 Sparks Rapid Rise in “Cancellation” and “Refund” Litigation
A proposed class action filed in federal court in California on April 20 demands refunds for all fans who purchased tickets to Major League Baseball (MLB) games that have been postponed indefinitely due to the coronavirus pandemic. The suit, filed…
Hunter or Hunted? Mortgage Industry Players Should Consider Their Options
In the mortgage industry, as in many others, uncertainty abounds as companies attempt to adjust to the “current normal.” One thing residential mortgage loan originators and servicers believe is clear, however, is that they are being unfairly squeezed from several…
A Glut of “Opportunistic” Margin Calls: Are Creditors Moving Too Quickly to Seize Assets?
What can companies expect from their funding sources as COVID-19 does damage to the economy? In at least some instances, perhaps, opportunistic attempts by lenders to illegally take control of business assets. A real estate investment trust (REIT) in New…
COVID-19: What Market Bubbles will it Burst?
Earlier this week, we noted that COVID-19 might be the pin that bursts a corporate debt bubble.[1] Unfortunately, corporate debt is not the only type of debt poised to explode, particularly under mounting pressure from COVID-19 and the economic downturn that…
Coronavirus and the Next Possible Financial Crisis: Corporate Debt
As the world grapples with the health threat posed by the novel coronavirus (COVID-19), the secondary threats of the coronavirus—including economic and financial consequences—have come into clear view. Markets in the United States and the broader world tanked last week,…
RMBS Litigation Relating to Loans Sold Prior to 2008: Are We Finally Nearing The End?
The years since the 2007–2008 financial crisis have been marked with milestone settlements of claims against the major mortgage “aggregators” (sometimes also known as “investors” in the mortgage purchasing context), who then became “securitizers” or “sponsors” with respect to the…