Seventh Circuit finds that “waiver of defense” clause in commercial guaranty did not waive…

In Hovde v. ISLA Dev. LLC, 51 F.4th 771 (7th Cir. Oct. 24, 2022) a property developer borrowed money from private lenders in 2004 to develop a condominium project. To secure the loan, the developer signed a note and the developer’s principal gave his personal guarantee. The project ultimately failed.…

Read More »

Wisconsin federal court awards fees to plaintiff for defendant’s attempt to remove case where…

A court awarded plaintiff awarded attorney’s fees and costs in an FDCPA action because the defendant attempted to remove the case to federal court where it was clear there was no Article III standing to confer federal jurisdiction. The consumer plaintiff in Currier v. Lawgix Laws., LLC, No. 21-CV-419-PP (E.D.…

Read More »

Seventh Circuit vacates fee award which denied all fees incurred after the rejection of…

In Cooper v. Retrieval-Masters Creditors Bureau, Inc., No. 18-2358 (7th Cir. July 29, 2022) the Seventh Circuit addressed attorney fee awards to prevailing plaintiffs under the FDCPA where the damage award was modest and the plaintiff had rejected what hindsight shows to have been a substantial early settlement offer. The…

Read More »

Eleventh Circuit says that mortgage statement containing “mini-Miranda” warning can be an “attempt to…

The Eleventh Circuit in Daniels v. Select Portfolio Servicing, Inc., 34 F.4th 1260 (11th Cir. May 24, 2022) reversed a district court ruling in favor of a mortgage servicer that monthly mortgage statements sent in compliance with Truth In Lending Act (“TILA”) are not communications in connection with the collection…

Read More »

The CFPB Intends to Begin Examining Fintechs Whose Financial Activities, Products or Services Pose…

On April 25, 2022, the CFPB announced that it intends to begin using a largely unused authority to examine nonbank/non-depository financial companies, that operate nationally including fintechs (“nonbanks”) that “pose risks to consumers”.  The CFPB’s announcement appears to be in response to the banking industry criticism that nonbanks’ activities are…

Read More »

Congress Enacts the LIBOR Act Providing Transition Plans and Safe Harbor

On March 15, 2022, the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) was signed into law, as Division U of the enactment of the Consolidated Appropriations Act of 2022. As the London Interbank Offered Rate (“LIBOR”) index is set to end on June 30, 2023, the LIBOR Act provides…

Read More »

Seventh Circuit holds that charging inspection fee does not breach mortgage contract

In Leszanczuk v. Carrington Mortgage Services, LLC, 21 F.4th 933 (7th Cir. Dec. 28, 2021), the borrower challenged the legality of a $20.00 property inspection fee that her loan servicer charged following her default. She claimed that because her property was occupied the fee could not be charged. The district…

Read More »

Illinois Appellate Court holds dismissal of complaint “de-accelerates” the mortgage for purposes of the…

To the several opinions issued in the last two years on the scope and impact on mortgage foreclosure proceedings of Illinois’ “single-refiling” rule, which allows a plaintiff to dismiss and refile a suit only once, needs to be added Bank of New York Mellon as Tr. for Certificate Holders of…

Read More »

Illinois court holds that the failure to comply with face-to-face meeting requirement cannot be…

The Second District Illinois Appellate Court in Freedom Mortg. Corp. v. Olivera, 2021 IL App (2d) 190462 (Aug. 5, 2021) affirmed the rule that failing to comply with the HUD regulations requiring a face-to-face meeting prior to foreclosure is a complete defense to the action. The Court went further, however,…

Read More »

City Passes New Keep Chicago Renting Ordinance

On April 30, 2021, in Rivera v. Bank of New York Mellon et. al., 2021 IL App (1st) 192188, the Illinois Appellate Court held that the City of Chicago Ordinance commonly known as the “Keep Chicago Renting Ordinance” (“KCRO”) § 5-14-010 et. seq. was preempted by the Illinois Rent Control…

Read More »