Financial services companies - banks, non-bank lenders and loan servicers, auto finance companies, student loan companies, debt collectors, credit card issuers, non-traditional finance companies, and other market participants - face numerous legal challenges today, including government investigations and enforcement actions, a shifting regulatory landscape, novel civil litigation theories and other litigation risks. Especially as the Consumer Financial Protection Bureau and other regulators issue guidance and promulgate new rules and regulations impacting the consumer finance industry, it is now more critical than ever that corporate counsel stay abreast of these developments and related enforcement and litigation trends in order to manage institutional risks. Recognizing this need, Goodwin's LenderLaw Watch monitors, chronicles and analyzes news and legal issues impacting our clients and the consumer finance industry.

Anticipating Decisions In Three Supreme Court Cases With Potential To Impact Class Action Litigation

The US Supreme Court’s October 2015 term includes three cases that may have important implications for class action litigation: Spokeo Inc. v. Robins et al., 13-1339, Campbell-Ewald Co. v. Gomez, 14-857, and Tyson Foods, Inc. v. Bouaphakeo, 14-1146.   In each case, the Court will consider a procedural question whose answer…

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Recent Class Actions Challenge Property Inspection Charges

From origination through final payoff, plaintiffs’ counsel look for claims in just about every aspect of the relationship between borrowers and their mortgage lenders.  Recently, scrutiny has turned to property inspections carried out during default servicing.  Plaintiffs’ lawyers have filed several class-action suits alleging that inspection fees violate mortgage terms, state…

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Happy Birthday to LenderLaw Watch!

On Friday, November 13, LenderLaw Watch celebrated its first birthday! On behalf of our bloggers and all of us at Goodwin Procter‘s Consumer Financial Services Litigation Practice, we want to mark the happy occasion by saying thank you to our readers! We look forward to another year of trend tracking…

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Potential PMI Pitfall: Recalculating PMI Termination Date After Loan Modification May Lead to Litigation Exposure

In August, the CFPB issued a compliance bulletin to clarify lenders’ obligations to terminate Private Mortgage Insurance (PMI) charges under 12 U.S.C. § 4902.  One subject that the bulletin did not address—but which is somewhat ambiguous—is how to calculate when PMI must be terminated after a loan is modified. Unless a borrower…

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Class Action Scrutiny Of New York Loan Satisfactions Increases

**EDITOR’S NOTE:  This post was guest-authored by Goodwin Procter partner Joe Yenouskas and associate Alyssa Sussman.  Both are members of Goodwin Procter’s Consumer Financial Services Litigation Group.** A series of putative class actions have been filed recently in New York federal courts by borrowers alleging that their mortgage satisfactions were not timely…

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Final Countdown: Mortgage Industry Apprehensive as TRID Effective Date Looms

Arguably the most pressing topic at this year’s Mortgage Bankers Association’s (MBA) Regulatory Compliance Conference (held on September 20-22, 2015 in Washington, D.C.) was the implementation of the TILA-RESPA Integrated Disclosure (TRID) Rule, which will take effect on October 3, 2015.   While industry leaders at the conference generally seemed to accept…

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2Q 2015 Sees Increase in Enforcement Litigation

*Editor’s Note:  This post originally appeared on our sister blog, Consumer Finance Enforcement Watch.  Visit CFEW for more real-time reporting on the full range of public federal and state consumer finance enforcement activity.* For the second quarter of 2015, Consumer Finance Enforcement Watch tracked 56 enforcement actions taken against consumer finance providers,…

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Hefferon And Permut To Speak About Litigation Trends At MBA's Regulatory Compliance Conference in DC

David Permut, a partner in Goodwin Procter’s Consumer Financial Services Litigation Practice will be a panelist September 20, 2015 at the Mortgage Bankers Association’s Regulatory Compliance Conference in Washington DC.  Permut’s panel will be reviewing claims against the mortgage industry, including buybacks and repurchases, claims related to MERS, UDAAPs and claims…

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In Well-Reasoned Decision, Sixth Circuit Joins Eleventh Circuit On TCPA Prior Express Consent

On August 21, 2015, the Sixth Circuit issued its widely anticipated decision in Hill v. Homeward Residential, Inc., No. 14-4168 (6th Cir. August 21, 2015), which affirmed a jury verdict that found Homeward Residential, Inc. had plaintiff Hill’s prior express consent to call him using an auto-dialer.  The case is significant because plaintiff Hill…

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