Banking & Finance

Second Circuit Tosses Potential Class Action Against BNY Mellon and MBS Trustees

January 19, 2015
Thumbnail image for Second Circuit Tosses Potential Class Action Against BNY Mellon and MBS Trustees

On December 23, 2014, the U.S. Court of Appeals for the Second Circuit ruled that pension funds could not bring a class action against financial institutions that served as trustees for mortgage-backed securities (“MBS”) trusts and could only pursue claims against trusts in which the funds actually invested. In Retirement Board of the Policemen’s Annuity […]

Read the full article →

NY Appeals Court Extends Common Interest Privilege to Merger Parties; Says Pending Litigation Not a Prerequisite to Invoke

January 9, 2015
Thumbnail image for NY Appeals Court Extends Common Interest Privilege to Merger Parties; Says Pending Litigation Not a Prerequisite to Invoke

A New York appellate court recently ruled that pending or anticipated litigation is not a necessary prerequisite for parties to a merger to claim a “common interest” exception to the general rule that attorney-client privilege is destroyed when a third party is present. The case — Ambac Assurance Corp. v. Countrywide Home Loans, Inc. et […]

Read the full article →

NY Court of Appeals Upholds Separate Entity Rule, Limiting Judgment Creditor’s Access to Assets in Foreign Bank Branches

December 17, 2014
Thumbnail image for NY Court of Appeals Upholds Separate Entity Rule, Limiting Judgment Creditor’s Access to Assets in Foreign Bank Branches

The New York Court of Appeals recently issued an opinion that reaffirmed the state’s “separate entity rule” whereby bank branches in multiple jurisdictions shall be treated as separate entities when it ruled that the foreign bank assets of a debtor could not be frozen by a judgment creditor. In Motorola Credit Corp. v. Standard Chartered […]

Read the full article →

Federal Reserve Board Launches Internal Review of Its Oversight of Big Banks

December 16, 2014
Thumbnail image for Federal Reserve Board Launches Internal Review of Its Oversight of Big Banks

On November 20, 2014, the Federal Reserve announced that it has requested the Inspector General conduct two internal reviews of how it oversees the country’s largest banks to ensure that oversight is sound, consistent and informed by all relevant information. In a November 17, 2014 letter to Mark Bialek, Inspector General for the Board of […]

Read the full article →

CFPB Proposes Additional Foreclosure Measures for Mortgage Servicers

December 15, 2014
Thumbnail image for CFPB Proposes Additional Foreclosure Measures for Mortgage Servicers

On November 20, 2014, the Consumer Financial Protection Bureau (“CFPB”) announced new proposed measures that would require mortgage servicers to provide additional protections to distressed homeowners and their heirs. According to the CFPB’s announcement, those additional measures would require mortgage servicers to: Provide select borrowers with protection from foreclosure more than once over the life […]

Read the full article →

Pennsylvania Appeals Court Rules MERS Can Assign Mortgages

November 18, 2014
Thumbnail image for Pennsylvania Appeals Court Rules MERS Can Assign Mortgages

A Pennsylvania appeals court has upheld a lower court’s ruling that MERSCORP Holdings Inc. (“MERS”) has the power to assign mortgages in Pennsylvania. Background In 2007, Matthew Gibson took out a mortgage with National Bank of Kansas City. The mortgage agreement established MERS as “nominee for lender and lender’s successors and assigns.” MERS later assigned […]

Read the full article →

New Rules Governing Default Judgments in New York Collections Lawsuits Now in Effect

November 17, 2014
Thumbnail image for New Rules Governing Default Judgments in New York Collections Lawsuits Now in Effect

As of October 1, 2014, new rules governing default judgments in consumer collection lawsuits as established by the New York Court System are in effect, requiring lenders and debt buyers to file specific form affidavits with default judgment motions. The affidavits required under the New York Court System’s final rule differ for original creditors and […]

Read the full article →

NJ Supreme Court Finds Banks Not Liable for Unauthorized EFTs by Non-Customers

November 14, 2014
Thumbnail image for NJ Supreme Court Finds Banks Not Liable for Unauthorized EFTs by Non-Customers

In a matter of first impression, the New Jersey Supreme Court has ruled that a non-bank customer cannot maintain a cause of action against that bank for improper electronic funds transfers (“EFTs”). In ADS Associates Group, Inc. v. Oritani Savings Bank (No. A-114-11), plaintiff Brendan Allen and defendant Asnel Diaz Sanchez entered into a joint […]

Read the full article →

Bank Add-On Products Target of CFPB Enforcement Action

November 13, 2014
Thumbnail image for Bank Add-On Products Target of CFPB Enforcement Action

The Consumer Financial Protection Bureau (“CFPB”) announced a consent order with U.S. Bank (the “Bank”) on September 24, 2014 in connection with an investigation into identity theft products sold by the Bank’s vendors. The CFPB alleged bank customers were billed by a third party service provider for credit monitoring and credit report retrieval services from […]

Read the full article →

Defining Fair Market Value Under Section 51.003 of the Texas Property Code

November 12, 2014
Thumbnail image for Defining Fair Market Value Under Section 51.003 of the Texas Property Code

The Supreme Court of Texas will soon decide whether lenders may recover the costs of marketing and selling foreclosed properties when seeking deficiency balances from borrowers, and clarify the method of determining the fair market value of the property that borrowers are entitled to offset in the deficiency calculation. In the case of PlainsCapital Bank […]

Read the full article →