Industry fears about the Consumer Financial Protection Bureau's "UDAAP" authority recall steps Congress took in the '70s to rein in the Federal Trade Commission.
The challenges of running a business become exponentially greater when managers seem to be spending more and more of their time finding and training new team members than in actually executing strategy.
Ever feel like you’re battling your mortgage lender for your life? Or the life of your home?
The unfairness and irrationality of mortgage servicing makes it easy to see the fight as one for your self worth. Who is comfortable being a victim of incompetent and indifferent institutions toying with your life?
I’m equally indignant.
But let’s stand down, long enough to see if the fight is worth the effort.
Three clients in as many months have found themselves unable to walk away from a fight with their legal opponent. Each one has acknowledged, out loud, that they would be better off settling. Or even walking away.
But each one found themselves returning to the fray.
I think they’d watched too much sports on TV about the “agony of defeat.”
They bought into Vince Lombardi’s world view:
In an effort to reduce settlement times, the Loan Syndications and Trading Association (the “LSTA”) recently revised its standard par loan trading documents to penalize buyers who take too long to settle. Beginning September 1, 2016, buyers who fail to fulfill their obligations to timely settle par loan trades will forfeit the right to receive interest that accrues prior to the settlement date. The changes do not apply to loans trading on distressed documents.
The LSTA’s revisions represent the trade group’s most aggressive step to combat settlement delays. The revisions are also the most consequential changes to the LSTA’s standard par trading documents in years.
Read More from: Orrick, Herrington & Sutcliffe LLP
Wall Street Journal
AML clarification: U.S. banking regulators issued a "Fact Sheet" that tries to clarify anti-money-laundering rules that some critics say are forcing banks to cut off access to innocent countries, businesses and individuals for fear of being penalized. The report is intended to "dispel certain myths" about the rules, which have caused some banks to refrain from serving customers in island nations, emerging-market countries and those in drug-ridden areas, such as the U.S. border...
Months back I blogged about payday loans and whether filing for bankruptcy relief can help a person break out of the debt cycle payday lending creates. Bankruptcy can absolutely provide an avenue to escape the debt trap of payday lending. But as a community are we willing to allow bankruptcy to be the only option in the face of such predatory lending? Payday loans are reprehensible in nature because the lenders intentionally prey upon the weakest and least financially sound members of our community. The payday lenders try to convince folks they are doing our community a favor by lending to people who would otherwise be shut out of traditional lending options. But in reality the only favor such lenders are interested in is favoring themselves and their right to pursue the almighty dollar on the backs of the poor in our state.
DeGiacomo v. First Call Mortgage Company (In re Reznikov), 548 B.R. 606 (Bankr. D. Mass. 2016) – A chapter 7 trustee sought to avoid a recorded mortgage based on a defective acknowledgment and then to preserve the lien of the … Continue reading
Read More from: Bankruptcy-RealEstate-Insights
New Jersey lawmakers are looking to revise the state’s student loan program as more and more people complain about the crippling debts faced by NJ students, and their families, after they leave college.
Many people have criticized the ways in which NJ officials operate the college student loan program. Among the complaints lodged against the program are that it forces young people to make an impossible choice between racking up huge debts while attending university or entering the workforce without a college degree and subsequently earning significantly less money.
Another complaint about the New Jersey student loan program is that it’s predatory, with the rates charged on the loans putting the loan recipients in a difficult position almost immediately upon graduation – if the student graduates at all. The end result of the high interest rates that accompany student loans in New Jersey is that college students, and sometimes their families, can be forced into bankruptcy.
Read More from: The Law Office of Joel R. Spivack
In previous blog posts, I have occasionally touched on some aspects of the process of appealing unfavorable decisions for SSA disability claims. In this blog post, I want to go into a bit more detail on each appeal available to claimants who have received denials.
After a claimant files their initial application for SSA disability benefits and the claim has been processed by the Disability Determination Service, if they are fortunate, they will be awarded their disability benefits. More likely than not, though, they will be denied.
Currently, the chance of receiving a favorable decision at the initial application stage in Alabama is a little less than 30 percent. To put it broadly, unless you are bedridden, hooked up to a machine or have a terminal condition, don’t be surprised when you get a denial letter in the mail from Social Security (SSA).
Banks and regulators both deserve credit for how they have navigated the post-crisis period, but how regulators continue to implement rules Â-- and how banks continue to deal with this environment Â-- will determine if this is a turning point for finance or the prelude to another round of pain.
Banks need more specific guidance that clarifies requirements around vendor contracts, risk assessments, data management and other issues.
Three emotions, not reasons, keep people from filing bankruptcy and getting out of debt.
Emotions keep people mired where they are.
While not as sexy as the seven deadly sins, they still keep my clients mired in debt long after logic says “quit”.
Fear of the unknown probably kept our primitive ancestors alive. In the age of the internet when nothing remains unknown, it’s ironic that fear continues to keep people from filing bankruptcy.
People fear life in a consumer society without credit. They fear being branded as a failure. They fear the judgment of others about whether they are worthy of bankruptcy relief.
Wall Street Journal Cutting out banks: Transferwise, the global money transfer startup that has so far worked indirectly with consumers through its bank partners, wants its own independent licenses, eschewing banks. The five-year-old London-based company currently partners with Barclays in the U.K. and Community Federal Savings Bank in New York. It has licenses in 37 states, and can operate independently in three states that don't require licenses. The company's CEO says having its own licenses willÂ...
Detroit’s mediated settlements are “an extraordinary accomplishment in bankruptcy and an ideal model for future municipal debt restructurings.”
–Judge Steven W. Rhodes, from Detroit Bankruptcy’s Plan Confirmation Ruling
“Who Pays for Police Misconduct in Bankrupt Cities” is the title for the report of a study, published on August 21, 2016. The report is most helpful–and well worth reading in its entirety!
Here’s how the report begins:
“In March 2015, the United States Department of Justice released a report finding racial bias and discrimination pervading police and court practices in Ferguson Missouri. When asked to comment shortly thereafter, Ferguson’s mayor suggested that an unduly aggressive stance by DOJ could push Ferguson into bankruptcy.”
Read More from: Mediatbankry
Stop the presses! Oh, wait, no presses any more
with the internet.
So, the current situation is like that of the VA, described in
former Defense Secretary Gates’ autobiography. When he
complained about how hard it was for veterans to determine
which benefits they could get, the VA sent back a list of the
22 websites which explain everything.
Private student loan debt has NO repayment options.
Read More from: Discharge Student Loan
Employees are the heart and soul of any company. When they are engaged, they behave in ways that have a tremendous positive impact. Companies that want to tap into that power should foster these three attitudes in their employee ranks.
Millennials came of age in the wake of the Great Recession and have developed a hardened skepticism about banks. For banks to attract them as employees, it's going take more than a promise of work-life balance.
Pstt! Homeowners. Bankruptcy Lawyers.
We’ve been handed a new tool for dealing with problems with mortgage lenders.
Or maybe the courts are just showing us how to use some tools we’ve accumulated. Tools to make sure that homeowners who emerge from Chapter 13 are right and square with their mortgage lender.
Scott v. Caliber (Bankr. N. D. Okla 2015) holds the lender who snoozed through the bankruptcy case guilty of violating the discharge by claiming there was a mortgage delinquency.
Here’s how it developed.
Getting current on a delinquent home loan is often the central goal of a Chapter 13.
The problem is that too often the debtor completes the bankruptcy case, only to get a notice from the lender that he’s not current, but facing foreclosure again.
Wall Street Journal
Different strokes: As trading revenues shrink and more stringent regulations and higher capital requirements pinch their top and bottom lines, Goldman Sachs and Morgan Stanley "have turned to more basic banking businesses, betting that the cachet of their brand names can overcome relative lack of experience in dealing with the deposits and loans of middle-class Americans." ...
Senator Elizabeth Warren is famously known for her work in consumer protection. Before being elected to the United States Senate in 2012, Senator Warren was responsible for founding the Consumer Financial Protection Bureau. This government agency was created in the wake of the great financial meltdown of 2008 and is tasked with protecting the consumer in the financial sector, including against mortgage lenders and debt collectors. This is actually a wonderful, if little known, agency that actually works for the working families of America. Let’s explore exactly what this agency does and how you, the consumer, can take advantage of the benefits it offers.