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New York Federal Court Holds Homeowners Protection Act Preempts State Deceptive Trade Practices Claim
On May 11, the U.S. District Court for the Southern District of New York (SDNY) dismissed a borrower’s claim against a service lender upon finding that that the New York Deceptive Trade Practices Act (DTPA) was preempted by the Federal Homeowners Protection Act (HPA). Fellows v. CitiMortgage, Inc...
InfoBytesArizona Enacts Legislation Requiring Lenders to Contact Certain Borrowers to Discuss Foreclosure Avoidance
On May 11, Arizona Governor Janice Brewer signed into law H.B. 2626 , a bill requiring a lender to attempt to contact any borrower whose mortgage is secured by the borrower’s principal residence to discuss foreclosure avoidance options at least 30 days before the recording of a notice of trustee’s...
InfoBytesVermont Law Regulates Disclosures for Trigger Lead Solicitations
On May 10, Vermont Governor Jim Douglas signed HB 622 , which will require increased disclosures for mortgage loan “trigger lead” solicitations. The legislation requires that solicitors disclose (i) that they are not affiliated with a consumer’s financial institution, (ii) that the financial...
InfoBytesMaryland Attorney General Settles with Payment Processing Company for Allegations It Failed to Properly Dispose of Consumer Information
On May 10, Maryland Attorney General Douglas Gansler announced a settlement with a payment processing company (MAP, LLC) and two of its officers for allegedly violating the Maryland Personal Information Protection Act by failing to take “reasonable” steps to protect consumer information when it...
InfoBytesTexas Federal Court Declines to Exercise Jurisdiction over Real Estate Settlement Service Case
On May 10, the U.S. District Court for the Southern District of Texas granted a motion to remand a lawsuit alleging the payment of kickbacks in connection with real estate settlement services despite the warranty service provider’s allegations that the lawsuit brought claims under the federal Real...
InfoBytesCalifornia Federal Court Certifies Class in Forced Placement Insurance Dispute
On May 10, the U.S. District Court for the Northern District of California certified a class of plaintiffs in a case involving the forced placement of homeowner’s insurance. Wahl v. American Security Insurance Co., No. C 08-00555, 2010 WL 1881126 (N.D. Cal. May 10, 2010). In Wahl , the plaintiff...
InfoBytesVermont Adopts Third Party Loan Servicer Licensing Law
On May 8, Vermont Governor Jim Douglas signed SB 287 , a bill that will require entities to secure a license to act as a third party loan servicer for loans to Vermont borrowers. The bill defines “third party loan servicer” as “a person who engages in the business of servicing a loan, directly or...
InfoBytesArkansas Increases Usury Limit
Arkansas residents recently voted to increase the maximum allowable rate of interest on all loans or other financing transactions entered into within the state. The maximum allowable rate, which is set out in the state constitution, had recently been below 6% per year. Fearful that such low rates...
InfoBytesCalifornia Federal Court Denies Class Cert in Dispute Alleging Predatory Lending, Deceptive Sales Tactics
On April 23, the U.S. District for the Southern District of California denied a motion for class certification in a dispute alleging predatory lending and deceptive sales tactics against a mortgage lender. Buckley v. Countrywide Home Loans, Inc. , No. 09-0064, 2010 WL 1691451 (S.D. Cal. Apr. 23,...
InfoBytesArizona Enacts Legislation Regulating Reverse Mortgages
On April 23, Arizona Governor Jan Brewer signed into law H.B. 2242 , a bill that imposes several substantive requirements on borrowers and loan originators of reverse mortgage loans. With respect to mortgage loan originators, the law sets out a number of requirements throughout the lending process...
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