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,…

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Wisconsin district court holds that is not a FCRA violation to report TPP payments…

A Wisconsin district court in Green v. Cenlar FSB, No. 19-cv-1555 (April 19, 2021) granted summary judgment to a loan servicing company for alleged violations of the Fair Credit Reporting Act (“FCRA”), on the grounds that the servicer conducted a reasonable investigation of a mortgagor’s credit disputes which challenged the…

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New Illinois Law Prescribes CRA Obligations for Non-Depository Mortgage Lenders

On March 23, 2021, the Illinois Community Reinvestment Act (“ILCRA”), Senate Bill No. 1608, was signed into law, Public Act 101-0657, and became effective. The ILCRA imposes continuing and affirmative community investment obligations on covered financial institutions, which include non-depository mortgage lenders. This note reviews and comments on key provisions…

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Illinois Appellate Court holds description of property as “single family residence” sufficient notification to…

In U.S. Bank Nat’l Ass’n as Tr. for C-Bass Mortg. Loan Asset-Backed Certificates, Series 2006-CB2 v. Sharif, 2020 IL App (1st) 191013 (Sept. 17, 2020), the mortgagor appealed the order confirming a foreclosure sale contending that the notice of the sale was insufficient. The mortgagor complained that public notice of…

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Firm will present at American Legal & Financial Network’s ANSWERS Webinar

On Friday, July 31, 2020, Founding Partner Jim Noonan will be virtually presenting at this year’s American Legal & Financial Network (ALFN) ANSWERS webinar entitled “Hindsight is 2020 – A year in Review. Top Issues of the Past Year.” Conferences as we have known them may be on hold, but…

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Illinois Court holds that complaint inferred acceleration notice was provided and for a monetary…

The mortgagor, in U.S. Bank, Nat’l Ass’n as Tr. for Truman 2016 SC Title Tr. v. Reinish, 2020 IL App (2d) 190175 (April 21, 2020), asserted as a defense to a judgment of foreclosure that the mortgagee did not provide her with a notice of acceleration prior to foreclosing. The…

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Agencies Provide Regulatory Flexibility to Servicers on Mortgage Loss Mitigation and Servicing Rule Practices…

On April 3, 2020, the Consumer Financial Protection Bureau (CFPB), Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), and the State Banking Regulators (collectively the “agencies”) issued a joint statement (“Statement”)…

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Illinois Appellate Court holds that one year statute of limitations applies to TILA rescission…

The borrowers in U.S. Bank Nat’l Assn. v. Miller, 2020 IL App (1st) 191029 (March 20, 2020) appealed from a judgment dismissing their counterclaim in a foreclosure proceeding to rescind their mortgage under the Truth in Lending Act (“TILA”). In a case of first impression, an Illinois appellate affirmed holding…

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Even though foreclosure accelerates debt Eleventh Circuit holds it is not inaccurate to report…

In Hunt v. JPMorgan Chase Bank, Nat’l Ass’n, No. 18-11306 (11th Cir. Apr. 25, 2019) a consumer filed a class action suit alleging that his lender violated the Fair Credit Reporting Act by reporting him late even after the lender had commenced foreclosure proceedings. He also contended that after he…

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Illinois appellate court holds refinancing lender entitled to conventional subrogation even where the proceeds…

In Wilmington Savings Fund Society, FSB v. Zarkhin, 2019 IL App (2d) 180439 (March 26, 2019) the Plaintiff filed a foreclosure on property owned by mortgagors, alleging in part that its mortgage, although recorded later, had priority over the defendants’ mortgage because it was intended and used to pay off…

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