The Federal Housing Administration (FHA) recently finalized enhancements to its 203(k) rehabilitation mortgage loan program in Mortgagee Letter 2024-13. This action follows the FHA proposing enhancements to the program last Fall in a draft Mortgagee Letter. Lenders must implement the enhancements for FHA case numbers assigned on or after November 4, 2024.… Continue Reading

The U.S. Supreme Court’s 6-3 decision in Securities and Exchange Commission v. Jarkesy, et al. significantly curtails the SEC’s enforcement powers by ruling that the agency’s administrative adjudication of securities fraud cases seeking civil penalties violates the Seventh Amendment right to a jury trial.

This landmark ruling deals a major blow to the SEC’s ability to bring enforcement actions in its in-house administrative forum rather than federal court.… Continue Reading

The CFPB has released its Summer, 2024 Supervisory Highlights, covering issues ranging from student loan servicing to financial institution supervision of medical providers offering payment products. The report covers the period from April 1, 2023 to December 31, 2023.

Here are key findings from the report:

  • CFPB examiners reported finding several instances of unfair, deceptive or abusive practices at companies servicing auto loans.
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Two federal judges recently said that the Education Department lacked the power to reduce or cancel federal student loans under the SAVE program; an appeals court subsequently lifted the injunction in one case.

In cases filed by Republican state officials, federal judges in Kansas and Missouri, both Democratic appointees, issued injunctions, saying that Congress had not given the Department of Education the power to reduce and cancel those loans as it had planned to do under the SAVE program.… Continue Reading

We previously wrote about an Illinois federal district court order requiring Samsung to pay about $4 million in arbitration fees in connection with 35,000 individual arbitration demands filed as part of a “mass arbitration” and the Seventh Circuit’s subsequent stay of that order after Samsung appealed. The Seventh Circuit has now decided the appeal—in favor of Samsung—an important ruling that may help level a mass arbitration playing field that heretofore has been tilted heavily in favor of the consumers.… Continue Reading

The Financial Institutions and Monetary Policy Subcommittee of the House Financial Services Committee will hold a field hearing in Lexington KY on this coming Friday, July 12 at 10 am, ET to discuss “Financial Institution-Fintech Partnerships: Leveraging Third-Party Relationships to Increase Access to Financial Services.” Speakers have not yet been announced.… Continue Reading

On this coming Thursday, July 11, from Noon until 1 pm, ET, we will be holding a Webinar Roundtable about the Supreme Court’s recent opinion on May 30, in which a unanimous Supreme Court reversed and remanded the Cantero v. Bank of America case to the Second Circuit. This is a case of extraordinary importance to national banks and non-banks that partner with them where the objective, at least in part, is to take advantage of a national bank’s preemption of state law.… Continue Reading

On July 1, 2024, the Supreme Court issued its opinion in Corner Post, Inc. v Board of Governors of the Federal Reserve System in which the Court determined when a Section 702 claim under the Administrative Procedure Act (APA) to challenge a final agency action first accrues. In a 6-3 Opinion, the Supreme Court sided with Corner Post in holding that a right of action first accrues when the plaintiff has the right to assert it in court—and in the case of the APA, that is when the plaintiff is injured by final agency action.… Continue Reading

Here is an update on the lawsuit filed by three trade associations against the Colorado Attorney General and UCCC Administrator challenging the application of the Colorado opt-out statute to out-of-state, state chartered, FDIC-insured banks.

On June 18, 2024, Judge Domenico from the U.S. District Court for Colorado issued a preliminary injunction enjoining the Colorado Attorney General and UCCC Administrator from enforcing the Colorado statute opting out of Section 521 of DIDMCA against members of the plaintiff trade associations who make loans from outside Colorado to Colorado residents.… Continue Reading

California frequently is in the vanguard of consumer financial issues and legislation, foreshadowing trends that may spread to other states. Today’s episode, during which we explore important hot topics and recent developments in California consumer finance law, is hosted by Ballard Spahr partner Melanie Vartabedian, and features Partners Michael Guerrero and Joel Tasca, and Of Counsel John Kimble.… Continue Reading