Latest News & Blogs

Massachusetts Regulator Issues 43 Cease-And-Desist Orders to Mortgage Loan Originators in Violation of Massachusetts SAFE Act Law

On August 9, the Massachusetts Division of Banks announced the issuance of 43 temporary cease-and-desist orders against licensed mortgage loan originators in Massachusetts for failing to meet requirements for licensure under Massachusetts’ Secure and Fair Enforcement for Mortgage Licensing Act (...

New Jersey Orders Use of State-Specific Settlement Disclosure Form

On August 2, the Commissioner of the New Jersey Department of Banking and Insurance (the Department), issued Bulletin 10-17 , which provides guidance on how mortgage lending entities should comply with both amended federal regulations governing Good Faith Estimate (GFE) and HUD-1/HUD-1A Settlement...

Illinois Passes Law Requiring Courts to Set Aside Certain Judicial Sales Related to HAMP

On July 23, Illinois Governor Pat Quinn signed HB 5735 , a bill requiring courts to set aside judicial sales of real estate under certain circumstances. Under the law, if a mortgagor can prove prior to confirmation of the sale that he or she had applied for assistance under the Home Affordable...

Fifth Circuit Holds Variable Rate Home Equity Loan Did Not Violate Texas Constitution

On July 22, the U.S. Court of Appeals for the Fifth Circuit affirmed a decision by a Texas district court finding that the terms of an adjustable rate home equity loan did not violate the Texas Constitution. Cerda v. 2004-EQR1 L.L.C. , No. 09-50619, 2010 WL 2853651 (5th Cir. July 22, 2010). In...

Ninth Circuit Holds Fixed APR in Credit Card Solicitation May Be Misleading To Consumers

On July 21, the U.S. Court of Appeals for the Ninth Circuit held that a plaintiff properly alleged claims under the Truth in Lending Act (TILA) and the California Unfair Competition Law (UCL) because the use of the term "fixed" to describe an annual percentage rate (APR) along with an enumeration...

Michigan Supreme Court Invalidates State Rules Prohibiting the Practice of Insurance Scoring

On July 8, the Michigan Supreme Court struck down rules issued by the state’s Commissioner of Financial and Insurance Regulation (Commissioner) banning the use of credit reports to determine automobile and homeowners insurance premiums, a practice known as “insurance scoring.” Ins. Inst. of Mich. v...

Mississippi Enacts Legislation Revising SAFE Act Implementation

The Mississippi legislature recently enacted legislation ( H.B. 223 ) amending Mississippi’s Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) compliance legislation. The bill generally amends certain definitions and exemptions, as well as changes the licensing process. Most notably...

The SAFE Act's Unlevel Playing Field

In the nearly two years since Congress passed the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (commonly known as SAFE), the one known truth may be this: Bleesed are those who hold a bank charter. SAFE requires national licensing and registration of individual mortgage loan...

John P. Kromer, Heidi M. Bauer

Washington State Supreme Court Holds HOLA Does Not Preempt Allegation of Impermissible Reconveyance Fees

On June 24, the Washington Supreme Court held that the Home Owners’ Loan Act (HOLA) and Office of Thrift Supervision (OTS) regulations do not preempt a borrower’s claim challenging fax and notary fees to secure the reconveyance of title when the claim is based on the terms of a deed of trust...

Illinois Amends Consumer Installment Loan Act; Caps Interest Rates, Eliminates Fees

On June 21, Illinois Governor Pat Quinn signed HB0537 , which amends the Illinois Consumer Installment Loan Act by placing a cap on interest rates, introducing income-based repayment measures, eliminating balloon payments and pre-payment penalties, and expanding the monitoring of licensed lenders...