Showing 16 posts from 2023.

New York City Department of Consumer and Worker Protection Issues Proposed Amendments to its Rules Relating to Debt Collectors

November 13, 2023 by Dana B. Briganti

In September, the New York City Department of Consumer and Worker Protection (DCWP) requested comment on proposed amendments to its rules relating to debt collectors, which could significantly change the requirements and procedures concerning debt collection with New York City consumers. DCWP had previously proposed amendments in November 2022, which were not finalized. More ›

How Much Is Too Much? Oral Arguments in Much Anticipated CFPB Funding Case Leave Justices Wondering

October 5, 2023 by Vaishali S. Rao, Sarah E. King

Early in October, the Supreme Court heard oral arguments in Consumer Financial Protection Bureau v. Community Financial Services Association of America Ltd (CFPB v. CFSA). The appeal stems from a 2021 Western District of Texas ruling upholding the Payday Lending rule and the CFPB's funding structure, which the Fifth Circuit Court of Appeals later partially reversed. The Fifth Circuit held the CFPB's entire funding structure unconstitutional because "Congress's cession of its power of the purse to the Bureau violates the Appropriations Clause and the Constitution's underlying structural separation of powers[,]" and thereby vacated the Pay Day Lending Rule. More ›

Rhode Island Supreme Court Continues to Strictly Interpret "Clear and Unforgiving" Statutory Language Regarding Court-Approved Redemptions from Tax Sale Proceedings

September 26, 2023 by Brooke Ackerman*, Samuel C. Bodurtha

In Westconnaug Recovery Co., LLC v. U.S. Bank N.A, the Rhode Island Supreme Court has continued to rule against redemption and in favor of strict application of the Rhode Island's Tax Title Act. Specifically, an interested party must assert a statutory right to redemption under § 44-9-29 even if initially contesting the validity of tax title under § 44-9-31 in response to a foreclosure proceeding. More ›

Sixth Circuit Applies Recent SCOTUS Tax-Taking Decision to Affirm an Owner’s Right to Net Tax Lien Foreclosure Proceeds

September 11, 2023 by Michael J. McKleroy, Samuel C. Bodurtha

We previously reported on the U.S. Supreme Court’s decision, Tyler v. Hennepin County, where the court concluded that the State of Minnesota violated a property owner’s constitutional rights by keeping the excess sale proceeds from a tax lien sale. Following Tyler v. Hennepin County, the Sixth Circuit, in Freed v. Thomas, affirmed a lower court’s holding that a Michigan county similarly violated the Fifth Amendment's Takings Clause. Freed owed the County roughly $1,100 in property taxes. The County foreclosed its tax lien and sold Freed’s property at public auction for $42,000 in accordance with Michigan’s General Property Tax Act. The County refused to pay Freed the roughly $40,000 over and above his tax debt. Freed sued the County, claiming that retaining the excess proceeds was an unconstitutional taking in violation of the Fifth Amendment and an excessive fine in violation of the Eighth Amendment. More ›

Nationwide Multistate Licensing System Adds New License Types

July 31, 2023 by Bonnie E. Dye

Several new licenses will be managed on the Nationwide Multistate Licensing System and Registry (NMLS) in Kentucky, North Dakota, and Wisconsin beginning August 1, 2023. These new license types will affect consumer finance companies in the student loan, mortgage, and sales finance industries.  More ›

Veto Override Brings Changes to North Carolina License Requirements for Consumer Finance Lenders and Servicers

July 27, 2023 by Bonnie E. Dye

Last month, the North Carolina General Assembly passed NC Senate Bill 331, which aimed to bring changes to the North Carolina Consumer Finance Act. Although Governor Roy Cooper had vetoed the bill, the state Senate voted to override the veto, making the bill effective on October 1, 2023. The amendments enacted in the bill will make a number of substantive changes to, among other things, the licensing requirements for lenders and servicers operating in the state.  More ›

Rhode Island Supreme Court Concludes that Door Hanger Left by Mortgage Servicer Prior to Foreclosure Satisfied HUD Face-to-Face Requirement

June 20, 2023 by Donald W. Seeley Jr.

In Montaquila v. Flagstar Bank, the Rhode Island Supreme Court rejected a borrower's attempt to expand the plain language of the U.S. Department of Housing and Urban Development's (HUD) federal regulation requiring loan servicers of FHA-backed mortgages to conduct a face-to-face meeting or make a "reasonable effort" to arrange a face-to-face meeting with the borrower prior to foreclosing. In reaching this conclusion, the court noted that the regulation only requires a trip to the property to arrange a face-to-face meeting; the actual face-to-face meeting is not required at this visit. More ›

SCOTUS Finds that Minnesota Tax Lien Statute Violates the Fifth Amendment's Takings Clause

June 1, 2023 by Michael J. McKleroy, Samuel C. Bodurtha

In Tyler v. Hennepin County, a unanimous U.S. Supreme Court concluded that the State of Minnesota violated a property owner's constitutional rights by keeping the excess proceeds from a tax lien sale. Geraldine Tyler owned a condominium in Hennepin County, Minnesota, but when she and her family decided she should move into a senior community in 2010, property taxes went unpaid. By 2015, Tyler owed the county $2,300 in unpaid taxes and $13,000 in accumulated interest and penalties. The county then seized and sold the condo for $40,000, extinguished the debt Tyler owed but retained all excess proceeds totaling $25,000 for its own use. Under Minnesota law, any excess tax sale proceeds could be split between the county, the town, and the school district. More ›

Maryland Moves to Eliminate Branch License Requirements for Non-Depository Institutions

May 17, 2023 by Bonnie E. Dye

As of July 1, 2023, Maryland will no longer require consumer finance company licensees to license their branch locations. Maryland House Bill 686 was signed into law by Governor Wes Moore on May 8, 2023 to effectuate the regulatory change. Up until the July 1 effective date, non-depository institutions operating in Maryland remain subject to branch license requirements. This means that these institutions are required to obtain and maintain separate licenses for each branch location. However, as a result of the change, licensees will be able to conduct business at multiple locations under a single license. More ›

California DFPI Announces Extension to Proposed Comment Period for Covered Person Registration Rulemaking

April 19, 2023 by Bonnie E. Dye

The California Department of Financial Protection and Innovation (DFPI) announced an extension to the proposed comment period for Covered Person Registration Rulemaking. The comment period, initially set to end on April 12, 2023, has now been extended to May 17, 2023. More ›

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