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Authored by Robert E. Pinder of Rogers TowersThe banking industry has spent the last two years preparing for the Consumer Financial Protection Bureau’s implementation of the Truth-in-Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA) Integrated Mortgage Disclosures Rule – referred to by the acronym “TRID.” (78 FR 79730). TRID was scheduled to become effective on August 1, 2015 by implementing significant changes for lenders providing disclosures to consumers who are applying for, and closing, a mortgage loan.  TRID modifies three decades of federal law by changing the timing and format of disclosures made during the mortgage process. A key change under TRID is the requirement that two new consumer forms be used for the mortgage transaction (replacing four forms used under the old TILA/RESPA regime) – the new forms are the Loan Estimate and the Closing Disclosure. Acting under a mandate contained within the Dodd-Frank Act, the CFPB issued the final TRID rule in November 2013. The CFPB’s stated purpose for TRID was to “combine two existing disclosure regimes under TILA and RESPA and make mortgage disclosure easier for consumers to understand and use.” Despite repeated requests to delay TRID’s implementation date, the CFPB had refused to postpone the rule’s effective date.

Read More from: Florida Banking Law Blog

2 weeks 3 days ago
It's hard to get consumers and merchants to change their behaviors. But eventually the convenience and well-crafted incentives of mobile payments will prompt people to give up the plastic habit.

Read More from: BankThink

2 weeks 3 days ago
It's hard to get consumers and merchants to change their behaviors. But eventually the convenience and well-crafted incentives of mobile payments will prompt people to give up the plastic habit.

Read More from: BankThink

2 weeks 3 days ago
In a decision with broad and significant implications for many investors, the Court of Appeals for the Fifth Circuit has held that claims arising under a guarantee of a security issued by an affiliate can be subject to mandatory subordination pursuant to section 510(b) of the Bankruptcy Code.  While the decision may come as a surprise to some investors who assume that guarantee claims, unlike claims for securities fraud, are not subject to mandatory subordination, the decision serves as a critical reminder of the breadth of section 510(b) of the Bankruptcy Code. The case of In re American Housing Foundation, is significant not only for its ultimate holding regarding the subordination of guarantee claims, but also for its analysis of the Bankruptcy Code’s definition of “affiliate.”  Such analysis is in tension with Bankruptcy Court decisions from the District of Delaware and elsewhere. Background In American Housing, the debtor was a nonprofit developer of low-income housing.  To fund many of its developments, the debtor created various single-purpose limited partnerships (LPs).  Interests in these LPs were sold to investors and guaranteed by the debtor.  The debtor (or its wholly-owned subsidiaries) served as the LPs’ general partners.
2 weeks 3 days ago
Millennials are individuals first and millennials second. Demographers and sociologists may like to group consumers, but when bankers market to the average instead of the individual, it's a losing strategy.

Read More from: BankThink

2 weeks 3 days ago
Baker Botts L.L.P. v. ASARCO LLC, 576 U.S. ---- (2015) The Supreme Court made a significant ruling that will encourage leveraged fee attacks on estate professionals in bankruptcy cases.  In an Opinion delivered by Justice Thomas, and joined by five other Justices, the High Court ruled that Bankruptcy Code section 330(a)(1) does not permit a bankruptcy court to award estate professionals fees for work performed in defending a fee application. Read More › Tags: Retention and Compensation

Read More from: Delaware Bankruptcy Insider

2 weeks 3 days ago
The Supreme Court has not handled its recent major bankruptcy decisions well. The jurisdictional confusion engendered by its 2011 decision in Stern v. Marshall was only partially clarified by this term’s opinion in Wellness International Network v. Sharif. The Court’s ruling this week in Baker Botts v. Asarco, while narrower, stands as another example of obtuse judicial reasoning that will create unnecessary problems for practitioners and bankruptcy court judges.

Read More from: Bankruptcy Law Insights

2 weeks 3 days ago
Sonja Morgan of “The Real Housewives of New York” attends the NBCUniversal Cable Entertainment 2015 Upfront in New York in May.
Evan Agostini/Associated Press
Four-and-a-half years after “Real Housewives of New York” star Sonja Morgan filed for bankruptcy, her case is finally coming to an almost-happy ending as creditors get paid and the reality-TV star gets to keep her multimillion-dollar New York townhome. Ms. Morgan put the majority of her bankruptcy case behind her last week when her bankruptcy-exit plan went into effect, paying off her creditors and allowing her to begin closing out her case. After a brief extension of the payout date as attorneys waited for Ms. Morgan’s check from Bravo to clear, the bankruptcy plan took effect June 9. The estate gathered money from the proceeds of the liquidation of Ms. Morgan’s property in Ramatuelle, France, for $5.7 million, $1.2 million from Ms. Morgan’s savings and a new $3.3 million mortgage on her New York home to pay her creditors. Those creditors include Hannibal Pictures Inc., with whom Ms. Morgan became embroiled after a failed movie project.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 3 days ago
Sonja Morgan of “The Real Housewives of New York” attends the NBCUniversal Cable Entertainment 2015 Upfront in New York in May.
Evan Agostini/Associated Press
Four-and-a-half years after “Real Housewives of New York” star Sonja Morgan filed for bankruptcy, her case is finally coming to an almost-happy ending as creditors get paid and the reality-TV star gets to keep her multimillion-dollar New York townhome. Ms. Morgan put the majority of her bankruptcy case behind her last week when her bankruptcy-exit plan went into effect, paying off her creditors and allowing her to begin closing out her case. After a brief extension of the payout date as attorneys waited for Ms. Morgan’s check from Bravo to clear, the bankruptcy plan took effect June 9. The estate gathered money from the proceeds of the liquidation of Ms. Morgan’s property in Ramatuelle, France, for $5.7 million, $1.2 million from Ms. Morgan’s savings and a new $3.3 million mortgage on her New York home to pay her creditors. Those creditors include Hannibal Pictures Inc., with whom Ms. Morgan became embroiled after a failed movie project.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 3 days ago
Shawn Thew/European Pressphoto Agency
The former RadioShack won court approval of the last major transactions of its bankruptcy case: more than $50 million worth of real estate in Texas, California and Maryland. The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Taylor Corp. is poised to take over Standard Register Co. in a $307 million deal, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 3 days ago
Shawn Thew/European Pressphoto Agency
The former RadioShack won court approval of the last major transactions of its bankruptcy case: more than $50 million worth of real estate in Texas, California and Maryland. The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Taylor Corp. is poised to take over Standard Register Co. in a $307 million deal, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 3 days ago
Shawn Thew/European Pressphoto Agency
The former RadioShack won court approval of the last major transactions of its bankruptcy case: more than $50 million worth of real estate in Texas, California and Maryland. The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Taylor Corp. is poised to take over Standard Register Co. in a $307 million deal, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 3 days ago
Receiving Wide Coverage ... Rate-Hike Watch: The Federal Reserve still plans to raise rates later this year. But much like an overbooked friend, it prefers to keep its level of commitment to that plan soft. Both the New York Times and the Wall Street Journal emphasize that the pace of the eventual rate hike is likely to be even slower than expected. The central bank may increase rates just once in 2015, by a quarter percentageÂ...

Read More from: BankThink

2 weeks 4 days ago
Authored by Edward L. Kelly and Karl R. Grussand Edward L. Kelly and Karl R. Gruss of Rogers TowersThe Supreme Court has agreed to address a split between circuits that emerged last summer centering on whether the Equal Credit Opportunity Act (the “ECOA”) permits financial institutions to require the spouse of a loan applicant to guaranty the loan. The Court will seek to answer two unresolved questions: 1.  Are “primarily and unconditionally liable” spousal guarantors unambiguously excluded from being ECOA “applicants” because they are not integrally part of “any aspect of a credit transaction”? 2.  Did the Federal Reserve Board have authority under the ECOA to include by regulation spousal guarantors as “applicants” to further the purposes of eliminating discrimination against married women? Basics of the Circuit Split

Read More from: Florida Banking Law Blog

2 weeks 4 days ago
Can a nondischargeability suit survive after a claim is deemed “satisfied in full” under a confirmed plan?  The Tenth Circuit recently considered this question in Bank of Commerce & Trust Co. v. Schupbach (In re Schupbach).  The court held that such a claim cannot survive where a plan is confirmed without objection or appeal regarding the treatment of the claim, emphasizing in its opinion the importance of resolving conflicts within the confines of the bankruptcy case and preserving issues for appeal.  Key Takeaways
  • Never underestimate the binding power of a confirmed plan, even in the face of a pending adversary proceeding. When in doubt, parties should raise their objections in the confirmation process.
  • Don’t assume that an issue can be raised for the first time before the appellate court. Preserve all issues by raising them initially with the lower court.
Background: Two Plans and the Power of a Confirmation Order
2 weeks 4 days ago
Series: Business Law Dumbed Down 2015 You are an owner or executive of a business that is getting to be sold.  You are an expert at your business but not an expert in M&A.  Multiples, earn-outs, indemnification buckets, and baskets are just some of the legal terms that your lawyer has started to throw around and which you don’t have a clue about.  This webinar is for you. Read more here.
2 weeks 4 days ago
There is no lack of statistics about how much capital has been raised, and how those dollar amounts have increased year over year, in the new asset class called securities crowdfunding. The statistics about investor returns have been much less forthcoming, partly because securities crowdfunding is only a few years old, but also because investor returns are not as “transparent” as offerings and sales on funding platforms. Read more here.
2 weeks 4 days ago
New Local Form 25 Effective June 12, 2015, there is a new method to have chapter 13 payroll control orders entered before the court. The new system completely streamlines the process of getting the order entered quickly and effectively. The clerk’s office in the Northern District of Illinois came up with a new form, local+ Read More The post There’s A New Way To Have Chapter 13 Payroll Orders Entered appeared first on David M. Siegel.
2 weeks 4 days ago
At the end of a contentious legislative session, the Governor signed into law an important piece of legislation strengthening Alabamians’ ability to protect their house and car from being seized by creditors.  The bill (SB 327), sponsored by Sen. Cam Ward (R-Alabaster), Rep. Jim Hill (R-Moody) and passed unanimously by legislative members, was due in large part to tireless consumer advocates like Alabama Appleseed, who recognize the importance of protecting the very assets Alabamians working poor are struggling so hard to maintain.   Before the law was changed, a creditor could seize your car, bank accounts, and household goods if the creditor said you were delinquent.  You would only be able to keep these items if the total value of this personal property was less than $3,000.  In practice, this amount may have been sufficient to protect some items from being seized, however, because cars typically are worth much more than $3,000, it rarely protected vehicles from being seized by creditors.  The result left many working poor without a way to work.  If you can’t get to work you can’t pay your debts.  
2 weeks 4 days ago

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