Consumer Financial Services Law Blog
Dykema Gossett PLLC
Dykema Gossett PLLC

Consumer Financial Services Law Blog

Consumer Financial Services Law Blog

News and analysis regarding Consumer Financial Services litigation and regulation, and activities of the Consumer Financial Protection Bureau


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Photo of Consumer Financial Services Law Blog Elisa J. Lintemuth
Senior Attorney
elintemuth@dykema.com
616-776-7532
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Showing 7 posts by Elisa J. Lintemuth.

Sixth Circuit Affirms that Michigan Mortgagees Need Not Disclose Who Owns the Note to Foreclose, and Borrowers Cannot State a Negligence Claim Based on Alleged Duties Under HAMP

In an opinion issued on July 6, 2015, which has been recommended for publication, the United States Court of Appeals for the Sixth Circuit affirmed the dismissal of several common claims made by borrowers in foreclosure-related litigation. In Rush v. Freddie Mac, the plaintiffs challenged a foreclosure on four grounds: they alleged that (1) Bank of America lacked standing to foreclose because there was no chain of title evidencing ownership of the loan; (2) Freddie Mac negligently failed to evaluate plaintiffs’ loan under the Home Affordable Modification Program (“HAMP”); (3) the foreclosure violated Michigan law; and (4) foreclosure by advertisement violated their due process rights. Read More ›

Supreme Court Holds Bankruptcy Court’s Denial of Confirmation of Proposed Plan Not Final, Appealable Order

In an opinion issued today, the Supreme Court held that debtors do not have the right to immediately appeal a bankruptcy court’s decision denying confirmation of a proposed reorganization plan. This decision resolves a circuit split, and confirms the balance of power between debtors and creditors in the plan confirmation process. As the Supreme Court explained, “the knowledge that [a debtor] will have no guaranteed appeal from a denial should encourage the debtor to work with creditors and the trustee to develop a confirmable plan as promptly as possible.” Read More ›

CFPB Proposes New Rules Regulating Prepaid Cards

The Consumer Financial Protection Bureau has proposed new rules to amend Regulation E (Electronic Fund Transfer Act) and Regulation Z (Truth in Lending Act) to create protections for consumers using prepaid cards.  These proposed rules  come as more and more people are using prepaid cards as a substitute for traditional checking accounts.  In addition to cards consumers purchase themselves, prepaid cards are used by some employers for payroll and by certain government agencies to distribute benefits.  CFPB Director Richard Cordray announced: “Consumers are increasingly relying on prepaid products to make purchases and access funds, but they are not guaranteed the same protections or disclosures as traditional bank accounts.” Read More ›

North Carolina Department of Insurance States that Collection Agencies May Not Charge Convenience Fees for Payments

On June 12, 2014, the North Carolina Department of Insurance Agent Services Division issued a memorandum, clarifying that it considers the collection of convenience fees by collection agencies to be prohibited under North Carolina law.  Read More ›

Michigan Court of Appeals Rules Mortgagees Responsible for Condominium Assessments from Date of Sheriff’s Sale

In Wells Fargo Bank v. Country Place Condominium Association, the Michigan Court of Appeals addressed an issue of first impression and resolved an issue that had been disputed for many years in Michigan between condominium associations and banks. The case involved a dispute as to when the mortgagee bank, which was also the purchaser at foreclosure sale, became responsible for the payment of condominium assessments. The relevant statute states that a foreclosing mortgagee is not liable for condominium assessments “prior to the acquisition of title by that mortgagee or purchaser.” MCL 559.158. The statute does not define “acquisition of title,” and the bank took the position that its responsibility to pay condominium dues began after the redemption period expired, when the bank acquired full legal title to the property. Read More ›

New CFPB Guidance on Higher-Priced Mortgage Loan Appraisal Rules under the Truth in Lending Act

On December 12, 2013, six federal financial regulatory agencies (the Federal Reserve, CFPB, FDIC, FHFA, NCUA, and OCC) issued a final rule amending the Dodd-Frank Act appraisal requirements for “higher-risk” mortgages to create exemptions from appraisal requirements for manufactured homes; loans of $25,000 or less (indexed each year for inflation); and certain “streamlined” refinancing transactions.  These exemptions are just in time, as the Higher-Priced Mortgage Loan (or HPML) Appraisal Rules under the Truth in Lending Act take effect on January 18, 2014.    Read More ›

Michigan Court of Appeals Holds Mortgage Servicers May Initiate Foreclosure by Advertisement Without Assignment of Mortgage

Following the Michigan Supreme Court’s landmark decision in Residential Funding v. Saurman, the Michigan Court of Appeals has ruled that mortgage servicers are not required to be the assignee of the mortgage to foreclose by advertisement.  In Claxton v. Orlans Associates, P.C., Nos. 300151, 303855 (Mich. App. Mar. 30, 2012), the Court, citing Saurman, held that MCL 600.3204 explicitly permits a servicing agent of the mortgage to initiate  a foreclosure by advertisement without an assignment of the mortgage.  The Court explained, “[t]o construe section (3) of MCL 600.3204 to preclude the servicer of the mortgage from initiating foreclosure would be in direct contradiction of the language contained in section (1)(d) of the same statutory provision that permits ‘the servicing agent of the mortgage’ to ‘foreclose a mortgage by advertisement.’” Read More ›