On January 11, 2024, the House Financial Services Committee announced the formation of a bipartisan Working Group on Artificial Intelligence (“AI”). The working group is to be led by the Chairman of the Digital Assets Financial Technology and Inclusion Subcommittee, French Hill, along with the Subcommittee ranking member Stephen Lynch. This group is designed to address a number of the directives contained in President Biden’s Executive Order on AI issued in October 2023.… Continue Reading
Updates on Verizon mass arbitration appeal and revised AAA mass arbitration supplementary rules
By Mark J. Levin on
Posted in Arbitration, Litigation and Court Decisions
We previously wrote about a Ninth Circuit appeal taken by Verizon Wireless, Inc. after a California district court judge held that its arbitration agreement, which required mass arbitration disputes to be resolved by multiple rounds of bellwether arbitrations, was substantively unconscionable because it effectively eliminated the claims of thousands of Verizon customers who were required to wait for up to 156 years for the bellwether arbitrations to conclude. … Continue Reading
SCOTUS holds oral argument in two cases challenging Chevron deference; Ballard Spahr to host special webinar roundtable on Feb. 15
By Alan S. Kaplinsky on
Posted in Federal Agencies, Litigation and Court Decisions
On January 17, 2024, the U.S. Supreme Court heard oral argument in the two cases in which the question presented is whether the Court should overrule its 1984 decision in Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc. That decision established what became known as “Chevron deference,” which requires courts to accept an agency’s interpretation of federal law if indicated by the outcome of a two-step analysis set forth in the decision. … Continue Reading
FTC postpones effective date for CARS Rule in response to legal challenge
By Brian Turetsky on
On January 18, 2024, the Federal Trade Commission’s (“FTC”) announced that it is postponing the effective date of the Combating Auto Retail Scams Rule (“CARS Rule”) in light of the legal challenge from industry trade associations seeking judicial review of the new rule. In a 3-0 vote, the FTC’s commissioners approved an order that, while taking issue with the trade associations’ arguments in the petition for review that the FTC maintains are “mischaracterizations,” stays the effective date pending the completion of that review “in the interests of justice.” … Continue Reading
FHFA Again Addresses Underutilization of Appraisal Time Adjustments
By Richard J. Andreano, Jr. on
Posted in Appraisals, Mortgages
The Federal Housing Finance Agency (FHFA) recently published another FHFA Insights blog post addressing the underutilization of appraisal time adjustments by appraisers that is a companion to an FHFA Insights blog post that we reported on previously. In the recent blog post, the FHFA presents the question “Is the racial disparity in underappraisal, or some portion of it, due to racial disparities in the practice of time adjustment?”… Continue Reading
CFPB proposed rule would make certain overdraft programs credit subject to Regulation Z disclosure requirements and could cap overdraft fees at $3
In furtherance of the Biden Administration’s “junk fee” agenda, on January 17, 2024, the Consumer Financial Protection Bureau issued its proposed rule to amend Regulations E and Z to regulate overdraft services provided by “very large financial institutions” (an insured depository institution or an insured credit union that has total assets of more than $10 Billion and any affiliate thereof, as determined under 12 U.S.C.… Continue Reading
SCOTUS to hear oral argument on Feb. 27 in National Bank Act preemption case
On February 27, 2024, the U.S. Supreme Court will hear oral argument in Cantero v. Bank of America, N.A., a case involving the scope of preemption under the National Bank Act (NBA). The question before the Court is whether the NBA preempts a New York statute requiring banks to pay interest on mortgage escrow accounts. … Continue Reading
SCOTUS to hear oral argument on February 20 to determine timing for facial challenges to federal regulations
The U.S. Supreme Court has scheduled oral argument for Tuesday, February 20, 2024 in Corner Post, Inc. v Board of Governors of the Federal Reserve System. The question that the Supreme Court will decide is when a right of action first accrues for an Administrative Procedure Act (APA) Section 702 challenge to a final rule issued by a federal agency—when the final rule is issued or when the rule first causes injury.… Continue Reading
CFPB’s credit card late fee final rule and overdraft and NSF fee proposed rulemaking expected prior to President Biden’s March 7th State of Union address
By Ballard CFS Group on
Speaker of the House Mike Johnson (R-LA) has invited President Joe Biden to give his State of the Union address to a Joint Session of Congress on Thursday, March 7, 2024. The invitation was immediately accepted by President Biden in a post on X, formerly known as Twitter, in which the President stated “Looking forward to it, Mr.… Continue Reading
CFPB issues two new FCRA advisory opinions on background screening reports and disclosure of credit files to consumers
On January 11, 2024, the Consumer Financial Protection Bureau (CFPB) issued two new advisory opinions: Fair Credit Reporting; Background Screening and Fair Credit Reporting; File Disclosure. The advisory opinions are part of the CFPB’s ongoing efforts to clean up what the CFPB describes in its press release as allegedly “sloppy” credit reporting practices and ensure credit report accuracy and transparency to consumers.… Continue Reading