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CFPB Supervisory Highlights Focus on Mortgage Origination, Mortgage Servicing, and Student Loan Servicing

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On April 26, 2017, the CFPB issued a press release and its latest Supervisory Highlights, which spotlight the CFPB’s recent enforcement efforts in the areas of mortgage loan origination, mortgage loan servicing, and student loan servicing.  The Supervisory Highlights reflect what the CFPB sees as common problems in each area,…

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DACA-Protected Plaintiff Files Class Action Alleging Lending Discrimination Based on Citizenship Status

On January 31, 2017, Mitzie Perez—a former undocumented immigrant who is authorized to work in the United States under the Deferred Action for Childhood Arrivals (“DACA”) policy—filed a class action in the Northern District of California, Perez et al. v. Wells Fargo & Co. et al., No. 17-454 (N.D. Cal….

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Court Applies Heightened Pleading Standard to CFPB Complaint Alleging Deceptive Practices

On November 15, 2016, the Central District of California issued a ruling (subscription required) in CFPB v. Prime Marketing Holdings, LLC dismissing without prejudice four out of five claims on grounds that plaintiff CFPB had not satisfied the heightened pleading standard of Federal Rule of Civil Procedure 9(b).  The court held that…

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FCC Issues Enforcement Advisory Clarifying Permissible Use of Robotexts Under the TCPA

On November 18, 2016, the FCC issued an enforcement advisory clarifying its position that autodialed text messages, known as “robotexts,” are subject to the TCPA.  As we reported last year, the FCC issued a package of declaratory rulings expanding the TCPA’s scope in July 2015, and this enforcement advisory is…

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Eleventh Circuit Invalidates Another Western Sky Arbitration Clause

On August 29, 2016, the Eleventh Circuit upheld a Northern District of Georgia decision invalidating an arbitration clause in Jessica Parm v. National Bank of California, N.A. (Docket No. 15-12509).  Defendant National Bank of California (National Bank) argued that plaintiff Jessica Parm’s (Parm) payday loan contract compelled her to arbitrate…

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CFPB Issues Special Mortgage Servicing Report, States Intention to Use Fair Lending Laws to Target Discriminatory Loan Modification Practices

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On June 22, 2016, the CFPB issued a Mortgage Servicing Supervisory Highlights Special Edition Report, and concluded that mortgage servicers may be violating the servicing rules that the CFPB enacted in January 2014, as a result of servicers’ continued reliance on ineffective technology.  In addition, the press release accompanying the…

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Arbitration Clauses Cannot be Used as a Vehicle to Evade Liability Under Federal Consumer Protection Statutes

On March 1, 2016, the Fourth Circuit refused to re-hear a February 2, 2016, decision in Hayes v. Delbert Services Corporation (Docket No. 15-1170).  In that decision, the Fourth Circuit reversed an Eastern District of Virginia’s decision upholding an arbitration clause on the ground that the clause was, in actuality,…

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