Residential

Expert Analysis

• What COVID Home Equity Repayment Plan Means For Lenders

  

  Mortgage servicers need to note expanded borrower protections established by the Federal Housing Administration's recent COVID-19 home equity repayment plan, which balances the FHA's goal of protecting its insurance interests while helping borrowers hold onto their homes, say Jay Wright and Britney Crawford at Bradley.

• CFPB's Reading Of Lending Act May Affect Home Equity Plans

  

  ​​​​​​​If the Fourth Circuit adopts the Consumer Financial Protection Bureau's arguments in Lyons v. PNC Bank, it would remove one tool issuers of home equity line of credit loans currently have to ensure repayment of outstanding debt on their customers' legacy HELOC accounts, say Ralph Mazzeo and Edward Southgate at Dechert.

• High Court Bankruptcy Ruling Is Unintended Gift To The SEC

  

  The U.S. Supreme Court's recent decision in Bartenwerfer v. Buckley on the Bankruptcy Code's fraud exception to dischargeability may have indirectly boosted the U.S. Securities and Exchange Commission's authority to collect monetary judgments arising out of its enforcement actions, say attorneys at King & Spalding.

• When It Comes To CFPB Agenda, Expect The Unexpected

  

  The Consumer Financial Protection Bureau's regulatory agenda identifies some key issues for financial institutions, but it is by no means a complete list, as the agency may continue to make extensive use of circulars, advisory opinions, amicus briefs and other means of setting out regulatory positions, says Michael Flynn at Buchalter.

• Townstone Ruling Rocks The Boat On Equal Credit Law Reach

  

  While an Illinois federal court's recent decision in Consumer Financial Protection Bureau v. Townstone has disturbed the use of the Equal Credit Opportunity Act to address discrimination in preapplication activities, lenders must still continue to monitor how they interact with prospective applicants to mitigate fair lending risk, say attorneys at Paul Hastings.

• Don't Assume AI Is Smart Enough To Avoid Unintended Bias

  

  As companies increasingly incorporate artificial intelligence decision models into their business practices, they should consider using statistical and qualitative analyses to evaluate and reduce inadvertent discrimination, or disparate impact, induced by AI, say Christine Polek and Shastri Sandy at The Brattle Group.

• NY Law Alters Foreclosure Timeliness Framework Post-Engel

  

  New York's recently passed Foreclosure Abuse and Prevention Act aims to prevent lender manipulation of foreclosure statutes of limitations following the Court of Appeals' 2021 decision in Freedom Mortgage v. Engel, and should cause lenders to work with mortgagees to resolve defaults, say attorneys at Abrams Fensterman.

• CFPB Brings RESPA Reminder To Mortgage Comparison Sites

  

  In light of the Consumer Financial Protection Bureau's recent advisory opinion on the Real Estate Settlement Procedures Act, anyone who, in a compensated arrangement, operates or participates in a digital comparison-shopping platform for real estate settlement services should revisit RESPA and related regulatory risk, say attorneys at Foley & Lardner.

• Key Considerations For Appointing A Real Estate Receiver

  

  With commercial real estate loan distress expected to grow dramatically in the coming months, lenders should make sure to understand best practices for seeking appointment of a receiver over a defaulted property, say Dave Wald at Wald Realty Advisors and Mark Silverman at Locke Lord.

• NY Foreclosure Notice Ruling Is A Win For Lenders

  

  The New York Court of Appeals' decision this week in Bank of America v. Kessler, holding that including additional information does not void 90-day preforeclosure notices, will counteract the wave of foreclosure dismissals caused by the lower court's decision, say Diana Eng and Alina Levi at Blank Rome.

• Questions Surround NY's Controversial New Foreclosure Law

  

  A new law revising New York's statute of limitations governing foreclosure actions, signed into law in December, contains some ambiguous phrasing that has sparked disputes between borrowers and lenders, and will undoubtedly lead to extensive litigation, say Christina Livorsi and Alfred Marks at Day Pitney.

• What To Expect From The House Select Committee On China

  

  Although the U.S. House of Representatives' new select committee on China cannot act on legislation, its bipartisan mandate may enable it to establish the conditions necessary for legislation to be adopted — or not — by Congress' other committees of jurisdiction, say attorneys at Arnold & Porter.

• New AML Law May Be Key Tool To Enforce Russia Sanctions

  

  A new anti-money laundering law for the first time authorizes monetary rewards for tips leading to government enforcement against certain sanctions violations, and though many questions remain, it gives the U.S. an additional tool in the ongoing global battle against Russian aggression, say Daren Firestone and Kimberly Wehle at Levy Firestone.