Case Law

The Consumer Financial Protection Bureau filed a complaint and a proposed consent order against American Advisors Group, a reverse mortgage lender which allegedly used inflated and deceptive home estimates to lure consumers into taking out reverse mortgages.

The bureau also alleged the company violated a 2016 administrative consent order.

For more details about the alleged violation, read on.

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After more than three years since originally filed, the case against the Consumer Financial Protection Bureau regarding its 2017 payday lending rule has ended in the U.S. District Court for the Western District of Texas.

U.S. District Judge Lee Yeakel issued an order finding in favor of the bureau, but not without giving some leeway to the plaintiff associations.

Read on for more details.

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The Consumer Financial Protection Bureau entered a stipulation requiring the bureau to issue a notice of proposed rulemaking on the regulations to implement Section 1071 of the Dodd-Frank Act by Sept. 30, 2021.

The stipulation and proposed order are related to a case in the U.S. District Court for the Northern District of California. 

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The Consumer Financial Protection Bureau issued a consent order against GreenSky, LLC, a nonbank fintech company headquartered in Atlanta, for enabling contractors and other merchants to take out loans on behalf of thousands of consumers without consent or authorization.

The bureau found the company engaged in unfair practices against their customers in violation of the Consumer Financial Protection Act of 2010.

For more details from the consent order, read on.

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The U.S. Supreme Court sided with a lower court ruling determining the structure of the Federal Housing Finance Agency (FHFA) is unconstitutional.

“FHFA’s structure violates the separation of powers, and we remand for further proceedings to determine what remedy, if any, the shareholders are entitled to receive on their constitutional claim,” Justice Samuel Alito wrote in the Court’s majority opinion.

For more details from the case, read on.

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A federal judge struck down the national eviction moratorium the Center of Disease Control and Prevention put in place last year to combat effects of the COVID-19 pandemic. The moratorium was slated to expire at the end of June 2021.

Mike Flood, Mortgage Bankers Association senior vice president of commercial and multifamily, spoke with Dodd Frank Update about the moratorium and what the organization recommends for a smooth transition once it ends, whether it is at its predetermined expiration date, or sooner.

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The Consumer Financial Protection Bureau has issued a consent order against a reverse mortgage lender, alleging the company sent deceptive loan advertisements to older borrowers.

According to the bureau, advertisements by the lender violated the Mortgage Acts and Practices Advertising Rule, the Truth in Lending Act, and the Consumer Financial Protection Act of 2010.

Read on for more details.  Read on »

The New York State Department of Financial Services (DFS) announced a settlement with Residential Mortgage Services, Inc. regarding violations of cybersecurity regulations.

The violation in question involved a cybersecurity breach in 2019 the company failed to report until its July 2020 DFS exam, almost 18 months after the fact.

For more details from the consent order, read on. Read on »

Ten individual and corporate defendants have agreed to settle with the Federal Trade Commission (FTC) on charges they participated in, controlled, or illegally benefitted from marketing of a real estate scam regarding the Sanctuary Belize development.

According to the FTC, the scheme took more than $120 million from consumers.

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The Ninth Circuit Court of Appeals issued a decision stating the Consumer Financial Protection Bureau (CFPB) was not required to start an investigation into Seila Law “from scratch”.

This ruling is a follow-up to the U.S. Supreme Court case in which the CFPB’s organizational structure was deemed unconstitutional. CFPB Director Kathy Kraninger then ratified the bureau’s actions after the Supreme Court’s decision, which sparked several challenges across the country on whether this ratification was appropriate.

For more details from the decision, read on.  Read on »