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By Financial Services Industry Group In an opinion issued on September 2, 2021, the Washington Supreme Court held that the filed rate doctrine may be applied to lenders or mortgage servicers implementing forced place insurance when there is a direct attack on agency approved rates.[1] What is the filed rate doctrine? Many state laws …
By 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 Act (“CARES Act”). In the Statement, …
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 …
By Creditors’ Rights and Bankruptcy Practice Group For lenders who maintain perfected security interests in collateral, the Second Circuit’s recent decision in In Re Motors Liquidation Company, et al. will go down in history as a middle-of-the-night, sweat-inducing source of anxiety. For business owners and others who rely on lenders to fund their ventures, the decision reveals the mechanics of a transaction. …
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 …
As an update to our blog post of November 25, 2014 (below), the United States District Court for the District of Oregon recently changed course with regard to property surrendered in bankruptcy, vacating and remanding In re Watt. Judge Ann Aiken recognized the lack of clarity to 11 USC 1322(b)(9), which at first blush may appear …
The Foreclosure Relief and Extension for Service Members Act of 2014 provides that if a mortgage was obtained before a service member was an active duty member of the military, then they are protected from foreclosure for a period of time upon return from active duty. The amount of time that a service member is …
For Lenders who maintain perfected security interests in collateral and their counsel, the Second Circuit’s recent decision In Re Motors Liquidation Company, et al. will go down in history as a middle of the night sweat inducing source of anxiety. The characters and documents involved are common players in the financial industry: JP Morgan Chase Bank, …
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 …