Financial Services Watch Blog
Business and Legal issues affecting: Banking, Finance and Lending, Credit, Securities and Investing, and E-Commerce
Bilzin Sumberg's Financial Services Blog features commentary and updates on a diverse array of litigation and transactional-related complex financial services issues. The Blog highlights issues affecting the banking, mortgage, insurance, homebuilding, wealth management, and accounting industries. Authors also provide insights on legal issues pertinent to mortgage origination, securities and investing, banking and lender liability, the credit card industry, e-commerce, insurance and reinsurance, accountants' liability, and auto finance.
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President Trump’s Digital Asset Executive Order
President Trump has signed an Executive Order that is set to fundamentally transform the regulatory environment for cryptocurrencies (“Strengthening American Leadership in Digital Financial Technology”). The order has the potential to provide unprecedented opportunities to individual investors, entrepreneurs, and companies that operate in the crypto industry. Learn more about the Order and its implications for crypto stakeholders.
The Corporate Transparency Act (CTA) Is Unconstitutional—But Only for Some Companies
On Friday, March 1, 2024, a federal judge in Alabama ruled that the Corporate Transparency Act is unconstitutional. Here is a brief summary of the ruling.
Revival of Time-Barred Zombie Mortgages May Come Back to Haunt Debt Collectors
Last month, the Consumer Financial Protection Bureau (CFPB) issued an advisory opinion on the attempted enforcement of time-barred alleged debt collection rights as to second mortgage loans. It is a violation of the Fair Debt Collection Practices Act (FDCPA) and its implementing Regulation F to sue or threaten to sue on a time-barred debt, including mortgage loans.
SEC’s Regulatory Authority over Crypto Assets Questioned
The regulatory authority of the U.S. Securities and Exchange Commission (“SEC”) over the cryptocurrency industry has recently been challenged on various accounts. A lawsuit filed by the SEC and, separately, a petition filed against the SEC are two examples of these recent events. The outcome of these pending legal actions may have a significant impact on the industry.
No, We Are Still Not Done With Indemnification Claims Arising from 2000s Residential Mortgages
Over the past year, the Federal Deposit Insurance Corporation (FDIC) as receiver for Washington Mutual Bank has filed a number of lawsuits against individual mortgage companies and mortgage brokers in connection with indemnification claims focused on residential mortgages that were originated before the financial crisis of 2007-2008. Additional mortgage companies, brokers and regional banks may find themselves in the crosshairs of such litigation as the FDIC continues to threaten action against institutions it claims failed to perform proper underwriting functions for mortgage products issued and sold prior to the financial crisis.
Financial Institutions Voice Strong Opposition to CFPB’s Credit Card Late Fee Proposal
In February, the Consumer Financial Protection Bureau (CFPB) proposed amending the Federal Reserve Board’s Regulation Z with respect to the amount of fees that credit card issuers are permitted to charge their customers for late payments. Read to learn more about the details of the proposed changes to Regulation Z and how they may affect financial institutions and the credit card industry.
New York’s CRPTO Act – the Most Comprehensive Set of Regulations yet on Cryptocurrency
On May 5, 2023, New York Attorney General Letitia James announced the Crypto Regulation, Protection, Transparency, and Oversight (“CRPTO”) Act, which aims “to protect customers and investors in digital assets from fraudulent practices, eliminate conflicts of interest and increase transparency.”