California court confirms that escrow agent’s duty is to the lender not the homeowner

In Ruvalcaba v. Ocwen Loan Servicing, No. 15-cv-00744 (S.D. Ca. July 13, 2017), the District Court for the Southern District of California considered the scope of a title company’s duties when acting as a sub-escrow agent and to whom it owes duties arising out of a lender’s closing instructions and…

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Debt collector cannot invoke FDIC’s safe harbor when relying on precedent that is later…

The issue in *Oliva v Blatt, Hasenmiller, Leibsker & Moore*, No. 15-2516 (7th Cir. July 24, 2017) (en banc) was whether a debt collector who violated the venue provision of the FDCPA can avoid liability on the ground that it was relying on controlling circuit precedent interpreting the statute when…

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FDIC Updates the Affordable Mortgage Lending Guide Information on State Housing Finance Agencies

On June 26, 2017, the FDIC has issued FIL-30-2017 concerning its update to the Affordable Mortgage Lending Guide (“Guide”) with updated Part II information concerning mortgage programs offered through state housing finance agencies (HFAs). The updated Guide contains a state-by-state HFAs product matrix, program summaries and quick links. It also…

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Illinois “single re-filing” rule inapplicable where the re-filed foreclosure complaint alleges a different default…

In Wells Fargo Bank, N.A., v. Dixie R. Norris et al., 2017 IL App (3d) 150764 (July 3, 2017) an Illinois appellate court clarified the limits of 735 ILCS 5/13-217, commonly known as the “single re-filing rule”, holding that res judicata principles govern whether a re-filed action is the same…

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Sixth Circuit Finds Rents Collected Under An Assignment Of Rent That Is Fully Transferred…

In In re Town Ctr. Flats, LLC, 855 F.3d 721 (6th Cir. 2017) the Sixth Circuit held that under Michigan law an assignment of rents agreement transferred the ownership of the rents to the creditor and therefore the rents were not property of the bankruptcy estate. The debtor in In…

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Ninth Circuit Confirms Replacement-Value Not “Foreclosure Value” Is the Proper Standard When a Chapter…

In In re Sunnyslope Hous. Ltd. P’ship, 859 F.3d 637, 640 (9th Cir. 2017), as amended (June 23, 2017), the creditor held a lien on property which pursuant to certain covenants in debtor’s loan agreements was required to be used as low income housing. The requirement that the property be…

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Illinois court holds that foreclosure sale purchaser waived defense that lis pendens barred contractor’s…

In Lake County Grading Company LLC v. Forever Construction Inc., et al; 2017 IL App (2d) 160359 (May 19, 2017), the Second District Appellate Court held that a foreclosure sale purchaser and mortgagee, waived the defense that the lis pendens barred the contractor’s suit by its conduct in inducing the…

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Supreme Court resolves conflict and holds that a purchaser of defaulted debt is not…

The Supreme Court in Henson v. Santander Consumer USA Inc., No. 16-349 (June 12, 2017) resolved a conflict among various circuits as to whether a person who buys debt is a “debt collector” under the FDCPA. The Court sided with the Fourth Circuit in holding that by buying debt that…

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Illinois court holds that a mortgagee can execute on an assignment of rents provision…

An Illinois appellate court construed the applicable statute on assignment of rents and concluded that a mortgagee can enforce an assignment of rents provision without taking actual or constructive possession of the property if the mortgagee and mortgagor agree by, for example, a forbearance agreement. In BMO Harris Bank N.A.…

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OCC Updated Its Policies and Procedures Regarding Violations of Laws and Regulations

On May 23, 2017, the OCC issued a bulletin providing updated guidance to national banks, including community banks, concerning changes to OCC’s policies and procedures regarding violations of laws and regulations. This updated guidance is effective July 1, 2017. The new guidance goals are to: (i) standardize a process for…

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