The Consumer Financial Services Group is pleased to share our 2014 Highlights report. The report describes our firm’s achievements, and our practice group’s events, representative matters and publications.
Please click here to view the report.
Our global insurance coverage lawyers and a guest speaker from Willis Group will discuss insurance coverage for data breaches and other cyber risks and how businesses can maximize their insurance coverage.
This is the third and final complimentary webinar in this series.
Wednesday 25 February 2015
Webinar Schedule: Log-in opens: 16:15 GMT; 11:15 EST; 8:15 PST
Program: 16:30 – 17:30 GMT; 11:30 – 12:30 EST; 8:30 – 9:30 PST
By: Kristie D. Kully
The Consumer Financial Protection Bureau recently issued a final rule amending certain aspects of its integrated disclosure requirements under the Real Estate Settlement Procedures Act and the Truth in Lending Act. The CFPB gave the mortgage lending and settlement industries over 18 months—until August 1, 2015—to prepare for the comprehensive overhaul of the disclosures provided to consumers upon application for and settlement of most residential mortgage loans. (Some have called that overhaul effort “TRID”—the TILA/RESPA Integrated Disclosures.) During that preparation time, the CFPB has learned of the need for corrections or improvements to those complex requirements. In its latest rulemaking, the CFPB attempts to fix certain issues related to providing a revised Loan Estimate disclosure (the first part of TRID) when a creditor and consumer decide to lock in the interest rate or other charges, and when the creditor expects a long construction period prior to settlement. The new rule also requires loan originators to include their names and identification numbers on the Loan Estimate and the Closing Disclosure (the second part of TRID), and clarifies how creditors must disclose per diem interest. Below, is a description of the changes that the CFPB’s most recent rulemaking makes to the disclosure requirements under the original TRID rule.
By: Holly K. Towle, Kendra H. Nickel-Nguy
Twenty years ago, the social media world we now live in was the stuff of science fiction. Today, social media is a critical business tool creating unprecedented opportunities for direct consumer interaction, brand awareness, checking the pulse of key constituents and so much more. This incredible opportunity is not risk-free, however, and is the subject of new laws, application of old laws to new situations, and a significant amount of murkiness. Fortunately, the risks can be managed by considering the issues created by social media and that begins with asking the right questions. Below is a discussion of ten important questions every business can start with to better benefit from its social media presence.
To read the full alert, click here.
By: Paul F. Hancock, Andrew C. Glass, Roger L. Smerage, and Olivia Kelman
On January 21, 2015, the United States Supreme Court heard oral argument in Texas Department of Housing & Community Affairs v. The Inclusive Communities Project, Inc. (the “Texas DHCA case”). The case presents the question whether the Fair Housing Act recognizes a disparate-impact theory of liability. See Tex. Dep’t of Hous. & Cmty. Affairs v. The Inclusive Cmtys. Project, Inc., — S. Ct. —, 2014 WL 4916193 (Oct. 2, 2014) (No. 13-1371) (granting petition for writ of certiorari). Under that theory, a plaintiff may challenge a defendant’s policies or practices that are neutral on their face (that is, do not reflect any intent to discriminate) but that purportedly have a disproportionate effect on groups sharing certain statutorily-defined characteristics such as race or national origin. The Supreme Court has expressed strong interest in the issue, granting certiorari three times in the last four terms to decide the question, only to have the parties settle just before oral argument in the previous two matters. See Magner v. Gallagher, S. Ct. No. 10-1032, and Township of Mount Holly v. Mt. Holly Gardens Citizens in Action, Inc., S. Ct. No. 11-1507. At argument in the Texas DHCA case, the public was finally able to hear the nature of the Court’s interest in the issue.
By: Brian M. Forbes and Gregory N. Blase
For several years, federal courts have struggled with the question of whether a consumer who wishes to rescind a loan pursuant to the federal Truth in Lending Act (“TILA”) may do so by sending a notice of rescission within three years after the closing date, or whether the statute also requires the consumer to file a lawsuit within that three-year time period. On January 13, 2015, the United States Supreme Court, in Jesinoski v. Countrywide Home Loans, Inc., No. 13-684, slip op. (U.S. Jan. 13, 2015), resolved that question and held that sending a written notice of rescission within three years after closing is sufficient to exercise the right of rescission under TILA; the statute does not require a consumer to also file a lawsuit within that timeframe.
By: R. Paul Stimers, András P. Teleki, Bruce J. Heiman, Michael J. O’Neil
On January 13, 2015, in response to the continuing onslaught of cyber attacks, including the recent cybersecurity attack and data loss at Sony Pictures Entertainment, the Obama Administration sent to Congress three legislative proposals to improve cybersecurity. The proposals would:
The President has been highlighting the cybersecurity proposals in a series of speeches leading up to the State of the Union Address.
To read the full alert, click here.
By: Melanie Brody and Anjali Garg
At the end of 2014, the New York Department of Financial Services (“DFS”) became the first state regulator to settle a case using its authority to enforce the federal Consumer Financial Protection Act (“CFPA”).[1] In Benjamin M. Lawsky, Superintendent of Financial Services of the State of New York v. Condor Capital Corporation and Stephen Baron,[2] the DFS claimed that indirect auto lender Condor Capital Corporation (“Condor”) and its sole shareholder, Stephen Baron, violated both New York State law and the CFPA’s prohibition on unfair, deceptive, or abusive acts or practices (“UDAAP”) by, among other matters, overcharging consumers and deceptively retaining credit balances due to them. The settlement requires Condor and Baron to admit to New York and federal violations, pay an estimated $8-9 million in restitution and pay a $3 million penalty, and surrender all of Condor’s state lending licenses.
To read the full alert, click here.
24 February 2015
9:00 – 10:15 a.m. PST
12:00 – 1:15 p.m. EST
6:00 – 7:15 p.m. CET
Is your company planning on doing business in Poland? If so, you will need to know the latest legal, political, and regulatory issues that span a range of challenges and opportunities when entering the market in the CEE largest national economy.
In this complimentary webinar, a panel of partners from our Warsaw office will address a range of legal issues to give you a comprehensive grasp on the business operating environment in Poland.
Moderator:
Panelists:
To RSVP, click here.
27 January 2015
2:00 – 3:30 p.m. EST
With the New Year comes impending changes to FHA origination, underwriting, and closing guidelines in the form of HUD’s updated FHA’s Single Family Housing Policy Handbook 4000.1. As announced on September 30, 2014, FHA’s origination through post-closing and endorsement sections of its new Single Family Housing Policy Handbook will be effective for FHA-insured loans with FHA Case Numbers assigned on and after June 15, 2015. With less than six months until these new requirements go into effect, mortgagees need to focus on these important requirements that will govern origination through post-closing and endorsement. It is imperative that mortgagees familiarize themselves with the new lending guidelines and ensure that their systems, procedures, underwriting practices, and personnel will be ready to go by June 15, 2015. Quality Control departments would also benefit from a review of these requirements, as they may need to amend their review processes to identify and resolve any findings of noncompliance with the amended guidelines.
On Tuesday, January 27, 2015, from 2 p.m. to 3:30 p.m. EST K&L Gates will sponsor a webinar in which we will discuss the most significant changes to HUD origination and underwriting requirements included in the new Handbook. We will leave time at the end of the webinar to answer your questions. We hope you will be able to join us.
Presenters:
• Phillip L. Schulman, Partner, Washington, D.C.
• Krista Cooley, Partner, Washington, D.C.
• Holly Spencer Bunting, Partner, Washington, D.C.
• Emily J. Booth-Dornfeld, Counsel, Washington, D.C.
To RSVP, click here.
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