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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Showing 58 posts in Mortgage Servicing.

The Sixth Circuit Holds a Limited Liability Company is a "Person" Under the FDCPA

Recently, the Sixth Circuit held a limited liability company is a "person," with standing to sue under the Fair Debt Collection Practices Act ("FDCPA"). Anarion Investments, LLC v. Carrington Mortgage Services, LLC, 794 F.3d 568, 2015 U.S. App. LEXIS 12670 (6th Cir. Tenn. 2015). This decision could lead to suits brought by LLC's and other legal entities, seeking to expand the holding in AnarionRead More ›

CFPB Examinations for 2015 Q1 Reveal Particular Scrutiny on Mortgage Servicers

On June 23, 2015, the Bureau issued its eighth edition of Supervisory Highlights (the “Report”) in which the CFPB shared its “recent supervisory observations in the areas of consumer reporting, debt collection, student loan servicing, mortgage origination, mortgage servicing, and fair lending.” The CFPB reported that, for the first four months of 2015, “supervisory resolutions have resulted in remediation of approximately $11.6 million to more than 80,000 consumers.” Read More ›

HUD’S Distressed Asset Sale Program May Force a Delay in Foreclosures

On April 24, 2015, the U.S. Department of Housing and Urban Development (“HUD”) announced changes it intends to make to its Distressed Asset Sale Program (known as DASP) which will affect mortgage servicers who purchase nonperforming home mortgage loans.  Read More ›

Bill Introduced to Permanently Extend Protecting Tenants at Foreclosure Act

On March 13, 2015, Senator Richard Blumenthal (D-CT) and Representative Keith Ellison (D-MN) introduced a bill seeking to extend the protections of the Protecting Tenants at Foreclosure Act (the Act) permanently. The Act, which expired December 31, 2014, provided protection for tenants living in a foreclosed property. Read More ›

United States Supreme Court Resolves Circuit Split on TILA Rescission

On January 13, 2015, the Supreme Court of the United States clarified the scope of a mortgagor’s right of rescission pursuant to the Truth in Lending Act (TILA), 15 U.S.C. § 1601 et seq.  In Jesinoski v. Countrywide Home Loans, Inc., the Court resolved the issue of whether a borrower must exercise the right of rescission by merely “notifying the creditor” within the three-year time period, or whether the borrower must file a lawsuit within that time in order to rescind.  In a unanimous decision, the Court held that borrowers need only notify the creditor within three years of their intention to rescind rather than file a lawsuit for rescission. Read More ›

Are you ready for NMLS renewal?

The NMLS renewal window opens this Saturday, November 1st.  Are you ready to submit your renewal requests?  Here are some things to keep in mind: Read More ›

Eighteen Months after Bulletin 2013-01, CFPB Issues New Guidance on Mortgage Servicing Transfers

Mortgage servicers and subservicers should consider reviewing the August 19, 2014 bulletin from the Consumer Financial Protection Bureau (CFPB) on mortgage servicing transfers to ensure compliance with the most up-to-date guidance.  This bulletin replaces the February 2013 bulletin on the same topic, incorporating the January 10, 2014 revisions to Regulation X, which implements the Real Estate Settlement Procedures Act (RESPA).  For servicers who have fully implemented the CFPB’s February 2013 guidance and the new servicing rule, we do not expect the information in the new bulletin to require significant changes to policies and practices.  Rather, the bulletin may provide a useful set of benchmarks and reminders.  Read More ›

Connecticut Bill Requires Licensing of Servicers Beginning January 2015

Beginning January 1, 2015, Connecticut will require any person acting as a mortgage servicer to hold a license from the Connecticut Department of Banking. Connecticut House Bill 5353, which was signed by the governor on June 3, 2014, requires a license for any servicer’s main office location as well as any branch office where servicing activity is conducted. Read More ›

Ninth Circuit Ruling on MERS Multidistrict Litigation Appeal: One Count Reversed, Remaining Dismissals Affirmed

Mortgage Electronic Registration Systems, Inc. (MERS), the private electronic database that records the ownership of and servicing rights in home loans, was recently the subject of a Ninth Circuit appeal.  Various borrowers had brought a multidistrict litigation in Arizona against MERS for five counts ranging from robosigning to aiding and abetting predatory lending.  Read More ›

Tennessee Law Exempts Mortgage Servicers From Collection Agency Licensure

A Tennessee law passed and effective on May 22, 2014 changes the existing licensing requirements for mortgage servicers seeking to obtain the Tennessee Collection Service License.  Under the new law, the definition of “collection service” has been changed, removing the licensing requirement for "any person that engages in, or attempts to engage in, the collection of notes or guarantees.”   Tenn. Code Ann. § 62-20-102(3).   Read More ›