Latest News & Blogs

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...

Ohio Federal Court Indicates Intent to Certify Question to Ohio Supreme Court to Resolve Applicability of Ohio Consumer Sales Practices Act to Servicers

On June 18, the U.S. District Court for the Northern District of Ohio stated its intent to certify to the Ohio Supreme Court the question of whether the Ohio Consumer Sales Practices Act (OCSPA) applies to mortgage loan servicers. Anderson v. Barclays Capital Real Estate, Inc. , No. 3:09-cv-2335 (N...

Utah Federal Court Extends "Complete Preemption" Doctrine to National Banking Act

On June 18, the U.S. District Court for the District of Utah issued a memorandum opinion explaining its June 11 order to vacate a preliminary injunction entered by a Utah state court, which had enjoined a defendant national bank and its trustee services company from conducting foreclosure sales in...

California Federal Court Finds No Private Right of Action Under HAMP, National Housing Act

On June 15, the U.S. District Court for the Eastern District of California held that the Home Affordable Modification Program (HAMP), the National Housing Act (NHA) and the California Perata Mortgage Relief Act (PMRA) do not create private rights of action. Zendejas v. Wholesale Mortgage Corp. , No...

South Carolina Legislature Overrides Governor’s Veto of Bill Amending Mortgage Broker Licensing Requirements, Restricts Payday Lending by Supervised Lenders

On June 15, the South Carolina General Assembly overrode the veto of South Carolina Governor Mark Sanford in connection with H 3790 , a bill including provisions to amend licensing requirements for mortgage loan originators that are independent contractors and prohibiting payday loans made by non-...