In McFarland v. Wells Fargo Bank, N.A., 14-2126 (4th Cir. Jan. 15, 2016), the Fourth Circuit Court of Appeals examined the argument that a loan was substantively unconscionable because it vastly exceeded the worth of the residential property by which it was secured. The case drew the attention of numerous amici for both the lender and the borrower. In short, during the height of the housing bubble, the borrower received a call from a mortgage broker that the value of his home had doubled in two years. The borrower refinanced his home to pay down other debt, but could not manage the larger ...
The U.S. Court of Appeals for the Fourth Circuit recently held that waiving any and all claims as part of loan restructuring agreements applied to a claim under the Equal Credit Opportunity Act ("ECOA"). In Ballard v. Bank of America, N.A., --- F.3d ---, 2013 WL 5814757 (4th Cir. 2013), the plaintiff filed suit alleging that the lender violated the ECOA by requiring her to guarantee loans to her husband's business. The plaintiff's husband obtained a business loan and, after defaulting on the loan, sought to restructure the debt. The lender required the plaintiff to guarantee the ...