Banking & Finance

NY DFS Report Says 1 in 3 Banks Lack Proper Cyber Security Oversight of Third Party Vendors

May 18, 2015
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On April 9, 2015, the New York Department of Financial Services (“DFS”) released its Update on Cyber Security in the Banking Sector: Third Party Service Providers report which found that approximately 30 percent of the banks surveyed do not required third party vendors to report cyber security breaches. The report is a follow-up to letters […]

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Seventh Circuit Defines When Servicers Must Credit Online Mortgage Payments Under TILA

May 15, 2015
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The Seventh Circuit Court of Appeals has ruled that the Truth in Lending Act (“TILA”) requires that mortgage servicers must credit consumer accounts with online mortgage payments on the date the consumer authorizes payment, not the date when the servicer receives the funds from the consumer’s bank. In Fridman v. NYCB Mortgage Co., LLC, No. […]

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U.S. Supreme Court Holds Denial of Debtor’s Bankruptcy Plan Cannot Be Appealed

May 14, 2015
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On May 4, 2015, the U.S. Supreme Court held in Bullard v. Blue Hills Bank, No. 14-116, that a bankruptcy court’s denial of a debtor’s Chapter 13 bankruptcy plan cannot be appealed since that denial is not a final order that merits appeal. Case Background In 2010, Louis Bullard, a Massachusetts homeowner, filed Chapter 13 […]

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TCPA Theories: Developing Trend in Consumer Litigation Law

March 2, 2015
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In 1991, the Federal Communications Commission (“FCC”) implemented the Telephone Consumer Protection Act (“TCPA”).  Generally, the TCPA prohibits unwanted solicitation calls made by automatic telephone dialing systems or by using artificial (or prerecorded) voices, unless the consumer gives “prior express consent.”  Contrary to many misconceptions, calls that fall under the ambit of the TCPA do […]

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Fed Proposes New Rule to Expand Number of Banks That Can Operate With More Debt and Announces Interim Final Rule on Reduced Reporting Requirements for S&Ls

February 18, 2015
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On January 29, 2015, the Federal Reserve Board (“Fed”) issued a proposed rule that would expand the number of small bank holding companies and savings and loans allowed to operate using a higher level of debt than large financial institutions. In addition, the Fed announced its interim final rule on reduced reporting requirements for certain […]

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D.C. District Court Denies New York AG’s Motion to Enforce $25B Mortgage Settlement Against Wells Fargo

February 17, 2015
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Calling the New York Attorney General’s motion to enforce the terms of a $25 billion mortgage settlement with five banks “penny-ante enforcement actions,” a U.S. District Court for the District of Columbia Judge denied the Attorney General’s motion finding that noncompliance allegations were insubstantial. The $25 billion settlement agreement was reached in February 2012 and […]

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CFPB Proposes Relaxing Rules for Small Mortgage Lenders

February 16, 2015
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On January 28, 2015, the Consumer Financial Protection Bureau (“CFPB”) issued a proposal that would ease the rules on small mortgage lenders to allow more community banks and credit unions to provide mortgage loans to consumers with higher debt levels. The proposal would allow qualifying lenders to provide mortgage loans to borrowers whose debt exceeds […]

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NY Supreme Court Dismisses Bank of America RMBS Suit Based on Delaware Law

February 12, 2015
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The Commercial Division of the New York Supreme Court has dismissed a shareholder suit against Bank of America, applying more stringent Delaware law to the case in which Bank of America is accused of allegedly breaching its fiduciary duty relating to the sale of residential mortgage-backed securities (“RMBS”) and Libor dealings. In his dismissal of […]

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NY Attorney General to Propose Legislation Strengthening State’s Data Security Laws

February 11, 2015
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New York Attorney General Eric T. Schneiderman announced that he will propose new legislation aimed at strengthening the state’s data security law by mandating new safeguards for protecting the personal information of consumers, broadening the scope of information that is subject to New York’s existing notification laws and incentivizing companies to meet heightened security standards […]

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Second Circuit Rules Mandatory Arbitration Clause Does Not Apply in NCUA Case

January 20, 2015
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The U.S. Court of Appeals for the Second Circuit upheld a district court’s ruling that despite the existence of a mandatory arbitration clause, Goldman Sachs & Co. cannot compel the National Credit Union Administration (“NCUA”) to arbitrate a dispute between the parties over the sale of mortgage-backed securities. The suit — National Credit Union Administration […]

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