New Tax Law May Impact the Mortgage Market For Cash Out Refinances and Junior…

The new Tax Cuts and Jobs Act (“TCJA”) signed into law on December 22, 2017, may impact the mortgage market for cash out refinances and for junior mortgages taken in order to cash out home equity. Under the TCJA for the taxable years beginning January 1, 2018 through December 31, 2025, only…

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The legal odyssey of the validity of a mortgage made by an unlicensed mortgage…

The background: In 2014, the Illinois Appellate Court held in First Mortgage Co. v. Dina, 2014 IL App (2d) 130567, 11 N.E.3d 343 (Dina I) that under the Illinois’ Residential Mortgage License Act (Act) if the originating mortgagee was not licensed a the time of origination the mortgage was void.…

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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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Eleventh Circuit gives its “stamp of approval” to a bankruptcy disclaimer contained in a…

The Eleventh Circuit in Helman v. Bank of America, 15-13672, – Fed. Appx.– (11th Cir. April 12, 2017) concluded that the least sophisticated consumer would not be misled that it was personally liable for a discharged debt where the monthly statements sent by the debtor’s bank contained a statement that…

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Promise to Borrower to modify loan when servicer knows that Borrower is not eligible…

The Ninth Circuit held that a servicer’s promise to a borrower to modify her loan when it knew knows that the borrower was not eligible for a loan modification was an unfair practice under California’s Unfair Competition Law § 17200. The Borrower in Oskoui v. J.P. Morgan Chase Bank, N.A.,…

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Illinois Appellate Court holds that condominium law puts no time limit on when the…

In 5510 Sheridan Road Condominium Association v. U.S. Bank, 2017 IL App. (1st) 160279 (March 31, 2017) the First District Appellate Court clarified some confusion over how Section 9(g)(3) of the Condominium Property Act (765 ILCS 605/9(g)(3)) operates to foreclose an assessment lien and concluded that when the foreclosure sale…

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Fifth Circuit holds that a lender’s secondary market policy of not buying loans which…

In Alexander v. AmeriPro Funding, Inc., 848 F.3d 698 (5th Cir. Feb. 16, 2017) the Fifth Circuit held that a lender is not guilty of violating the Equal Credit Opportunity Act (ECOA) because of an alleged policy not to buy loans in the secondary market that rely on a borrower’s…

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Illinois court holds that HUD requirement for a face to face meeting excused where…

An Illinois appellate court in PNC Bank, v. Wilson, No. 2-15-1189, 2017 IL App (2d) 151189 (March 2, 2017) determined that a mortgage servicer’s failure to strictly comply with the HUD regulations requiring the servicer to request a face to face meeting with the mortgagor prior to instituting a foreclosure,…

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Action on a deficiency judgment not an action on a debt under Florida Collection…

In Dyck O’Neal, Inc. v. Ward, No. 2D15-2989 (Fla. Dist. Ct. App. Jan. 27, 2017) a Florida Appellate court found that a creditor need not comply with Section 559.715 of the Florida Consumer Collection Practices Act (FCCPA) when attempting to enforce a final foreclosure judgment. In this case, after the…

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Florida homeowner’s association not barred from foreclosing its lien as a result of a…

In Jallali v. Knightsbridge Vill. Homeowners Ass’n, Inc., No. 4D15-2036 (Fla. Dist. Ct. App. Jan. 4, 2017) a Florida Appellate court found that the filing of a lis pendens by the first mortgage holder did not bar a subsequent foreclosure by a homeowner’s association. In Jallali, the first mortgagee filed…

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