Archive for January, 2018

Court Awards $10 Million Penalty Against Payday Lender, Rejecting CFPB’s Request for $280 Million in Restitution and Penalties

In August 2016, the U.S. District Court for the Central District of California granted partial summary judgment to the Consumer Financial Protection Bureau (CFPB) in a federal lawsuit against a California-based online payday lender, its individual owner, its subsidiary, and a servicer of its loans (“Defendants”), where the CFPB alleged that…

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Federal Reserve Assesses a Combined $35.1 Million in Civil Money Penalties Against 5 Mortgage Servicers Over Mortgage Servicing Practices

On January 12, 2018, the Federal Reserve Board (FRB) announced the assessment of civil money penalties and consent orders against five national banking organizations over mortgage servicing deficiencies, resulting in a total monetary settlem​ent of $35.1 million. In 2011 and 2012, the FRB initiated enforcement actions against ten firms, including the five against…

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Second Circuit Affirms TCPA Dismissal, Finding Broadly-Worded Consent Provided on Intake Form Sufficient to Show Prior Express Consent

On January 3, 2018, the Second Circuit decided Latner v. Mount Sinai Health Sys., Inc., 879 F.3d 52 (2d Cir. 2018), affirming the U.S. District Court for the Southern District of New York’s decision to dismiss the Telephone Consumer Protection Act (TCPA) suit, and finding that the plaintiff consented to…

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Senate Bill Seeks to Bestow Additional Enforcement Powers on State Attorneys General

On December 22, 2017, four Democratic Senators, Dianne Feinstein (D-CA), Kamala Harris (D-CA), Elizabeth Warren (D-MA) and Richard Blumenthal (D-CT), introduced a bill titled the “Accountability for Wall Street Executives Act of 2017.”  The bill amends the Revised Statutes, 12 U.S.C. § 484, to arm state attorneys general and other law enforcement…

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NCUA Issues List of Primary Areas of Supervisory Focus for 2018

This December, the National Credit Union Administration (NCUA) released a letter to credit unions detailing its primary areas of supervisory focus for 2018.  The NCUA intends for credit unions to rely on the letter to better prepare for their examinations by the NCUA throughout 2018.  The seven areas of focus…

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DOJ Settles With Mortgage Lender for $11.7 Million for FHA Mortgages

On December 8, the U.S. Department of Justice (DOJ) announced that it had settled allegations that a Louisiana-based mortgage lender violated the False Claims Act (FCA) through its underwriting of Federal Housing Administration (FHA)-insured mortgage loans.  In the lawsuit, which is pending in the U.S. District Court for the Eastern District of Arkansas, the…

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