In Edwards v. Macy's, Inc., --- F. Supp. 3d ---, 2016 WL 922221 (S.D.N.Y. Mar. 9, 2016), the U.S. District Court for the Southern District of New York recently held that state law claims arising from plaintiff's enrollment in a debt cancellation program were preempted by the National Bank Act ("NBA") and accompanying regulations promulgated by the Office of the Comptroller of the Currency ("OCC"). Further, the court held that the claims against both the national bank and the corporation acting on behalf of the national bank were preempted, even though the corporation was not a ...
Beginning August 31, 2015, the CFPB will begin supervising nonbank auto finance companies pursuant to 12 C.F.R. 1090.108. The Final Rule provides that auto finance companies that qualify as "larger participants of a market for automobile financing" will be subject to the new regulation. The Dodd-Frank Act gave the CFPB supervisory authority over "larger participants" of certain markets for consumer financial products or services, as defined by the CFPB. See 12 U.S.C. 5514(a)(1)(B). In June 2015, the CFPB finalized its larger participant regulation as it relates to the ...
The Connecticut Court of Appeals recently found that the prohibition of yield spread premiums in the Dodd-Frank Act did not establish a per se violation of a fraud claim under the Connecticut Unfair Trade Practices Act ("CUTPA"). In CitiMortgage, Inc. v. Coolbeth, --- A.3d ---, 2013 WL 6448883 (Conn. Ct. App. Dec. 17, 2013), CitiMortgage filed a foreclosure action against the defendant mortgagors. The mortgagors filed special defenses and a counterclaim alleging that the mortgage broker falsely represented a higher interest rate, that CitiMortgage paid the mortgage broker a ...
In Empire Bank v. Dumond, No. 13-CV-0388-CVE-PJC, 2013 WL 6238605 (N.D. Okla. Dec. 3, 2013), the U.S. District Court for the Northern District of Oklahoma recently held that the Dodd-Frank amendment to the statute of limitation for Equal Credit Opportunity Act ("ECOA") claims does not apply retroactively. While the court held that the statute of limitation barred spousal guarantors' ECOA counterclaim, the counterclaim was allowed to proceed because it was asserted under a recoupment theory. Empire Bank obtained guaranties from various individuals, entities, and spousal ...
In Henning v. Wachovia Mortg., FSB, No. 11-11428-WGY, 2013 WL 5229837 (D. Mass. Sept. 17, 2013), the U.S. District Court for the District of Massachusetts recently agreed with numerous decisions of other courts finding that the preemption provisions of the Dodd-Frank Act do not apply retroactively. Plaintiff, a mortgagor, filed suit against Wachovia Mortgage raising a number of claims based on Wachovia's purported wrongful conduct in providing him with a subprime stated-income loan knowing that he would likely default. After removal, Wachovia moved to dismiss based on ...
In Zevon v. Department Stores Nat'l Bank, No. 12 Civ 7799(PAC), 2013 WL 5903024 (S.D.N.Y. Nov. 4, 2013), the U.S. District Court for the Southern District of New York recently held that the increased statutory cap on class action damages under the Truth-in-Lending Act ("TILA") became effective January 21, 2013, rather than upon the Dodd-Frank's enactment. Plaintiff Marcy Zevon filed suit against Department Stores National Bank ("DSNB") alleging DSNB violated TILA and Regulation Z by failing to include the full text of Regulation Z's model billing rights notice in monthly ...
On July 10, 2013, the CFPB issued mortgage rules under Regulation Z and Regulation X pursuant to its authority under the Dodd-Frank Act. The CFPB further amended the mortgage rules on September 15, 2013 and October 1, 2013. The result is a super regulation which keeps the original framework of Regulations X and Z, but adds entirely new provisions addressing eight major topics. In this article, David A. Elliott, Nicholas S. Agnello and Seth I. Muse discuss the new regulations and the possible effect on mortgage litigation. You can find a copy of the article by clicking here. For more ...