COVID-19’s Impact on Credit Reporting

By Joshua D. Feil, Attorney in the Litigation Practice Group On April 1, 2020, and as part of the federal government’s response to the COVID-19 pandemic, the Consumer Financial Protection Bureau (“CFPB”) issued a policy statement (“Statement”) to guide lenders and credit reporting agencies as to their reporting obligations under the recently-passed Coronavirus Aid, Relief and Economic Security

Effective Immediately, Senate Bill 368 Clarifies Money Awards in Foreclosures

In a suit for judicial foreclosure, a plaintiff has the option of asking the court for a money award against a debtor. After amendments to the Oregon statutes dealing with judicial foreclosure from 2003 to 2007, some circuit courts began interpreting these provisions to require a money award against the person obligated on the debt,

Supreme Court Sides With Lenders Holding Junior Mortgages

A recent Supreme Court case considered whether, in a Chapter 7 bankruptcy proceeding, a junior mortgage may be voided when the senior mortgage amount exceeds the value of the property. For lenders, this means that if you hold a mortgage that is second in line to the primary mortgage, and that primary mortgage is larger

Non-Core Bankruptcy Matters: Take Action or Consent Will Be Implied

Bankruptcy courts have a seemingly obvious purpose—to settle bankruptcy claims. However, bankruptcy courts may also hear and decide matters that would traditionally be argued in a federal district court if those matters are related to the bankruptcy proceeding and the parties consent to arguing the issues in the bankruptcy court. To clarify why this matters,

Harris v. Viegelahn, Chapter 13 Trustee

During a Chapter 13 bankruptcy proceeding, a trustee collects a portion of a debtor’s wages for distribution to creditors according to a court-approved payment plan. At any time, a debtor may convert his Chapter 13 proceeding into a Chapter 7 proceeding, during which the debtor’s wages are not collected. What happens to wages collected, referred

Guarantors of Commercial Loans in Washington may be Liable for Deficiency

The Washington Supreme Court’s recent decision in Washington Federal vs. Harvey confirmed what was believed true: guarantors of commercial loans may be liable for a deficiency after non-judicial foreclosure of a trust deed. Lenders are often faced with Collateral Shortfalls in a default situation. This is especially true when the value of collateral after non-judicial foreclosure creates

Proposed CFPB Rule Changes

Proposed CFPB Rule Changes: Clarifications, Additional Requirements, and where Small Loan Servicers Fit The Consumer Finance Protection Bureau (“the Bureau”) has proposed new regulations to clarify a number of issues that the Bureau felt remain unresolved under existing rules.  The new rules are voluminous and address loss mitigation, small servicer definitions, and service transfer deadlines.  You

Surprise! Without Consent, Banks own Property Surrendered in Bankruptcy

Financial Services clients are in for a surprise if they read In Re Watt from the US Bankruptcy Court for the District of Oregon stating that, without consent, banks own property surrendered in bankruptcy. The court wrote that USC 1322(b)(9) does not restrict a court from vesting real property in a bank’s name even if the