Loan Modification and Deferment Requirements for SBA Lenders

Jimerson Firm

If a borrower is experiencing difficulties making payments on their SBA loan, they may seek relief with the lender or CDC by requesting a loan modification or deferment. A certification by the lender that it will make the requested change if SBA approves the repurchase of the loan.

How SBA Lenders Ensure Expense Recovery in Loan Liquidation and Litigation

Jimerson Firm

Lenders should be cognizant about what expenses are classified by the SBA as recoverable or non-recoverable. If a lender is seeking approval of legal expenses, the lender must obtain the SBA’s written approval of a litigation plan and budget prior to proceeding with any non-routine litigation.

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What Responsibility and Authority do SBA Lenders Have in Servicing and Liquidating Loans?

Jimerson Firm

Lenders are responsible for servicing and liquidating all of the 7(a) loans in their portfolio. The 7(a) Lenders Servicing and Liquidation Matrix provides a specific list of unilateral actions that require SBA notification. All 7(a) lenders must prepare a post-default Site Visit Report.

Payday Lender Appeals $132M Restitution Award

Account Recovery

The Consumer Financial Protection … The post Payday Lender Appeals $132M Restitution Award appeared first on AccountsRecovery.net.

Using Forbearance Agreements to Protect Commercial Real Estate Lender Interests During COVID-19

Fraser

Every real estate loan payment missed by a borrower puts lenders in a more precarious financial position. Economic woes are likely to continue, which means that lenders will be forced to deal with more financially distressed borrowers. In many cases, a lender is better off working out a deal that keeps a debtor in the property and running its business, so that it can work through the distress and remain solvent. A forbearance agreement can benefit both a borrower and lender.

OCC Finalizes Bright-Line “True Lender” Rule

Troutman Sanders

On October 27, the Office of the Comptroller of the Currency (OCC) issued its final rule on how to determine when a national bank or federal savings association (referred to collectively as a national bank) is the “true lender” in the context of a partnership between a national bank and a third party. Other commentators included banks, nonbank lenders, trade groups, and government representatives.

Mass. AG Sues Auto Lender For Violating State Collection Call Limits, Among Other Accusations

Account Recovery

a subprime auto lender, for knowingly originating loans to individuals even though it knew they would be unable to repay them, and then said the lender “harassed” those individuals by calling them as many as eight times a day in attempting to … The post Mass.

CFPB, State AGs Settle With Private Lender; $330M of Student Loans to be Discharged

Account Recovery

A copy of the complaint, filed … The post CFPB, State AGs Settle With Private Lender; $330M of Student Loans to be Discharged appeared first on AccountsRecovery.net.

Lender Dismisses Collection Lawsuits, Vows to File Fewer After Practices Questioned

Account Recovery

A consumer finance lender that caters to Latino immigrants has agreed to dismiss all pending collection lawsuits it has filed and committed to filing 60% fewer cases in the future after consumer advocates and journalists started asking the company questions about its collection practices.

States challenge FDIC rule that allows lenders to bypass state interest-rate caps

Public Citizen

Eight state attorneys general today filed a lawsuit challenging a new Federal Deposit Insurance Corporation rule that creates a loophole allowing predatory lenders to evade state laws that forbid excessive interest-rate charges. The FDIC’s final rule extends these exemptions to any non-bank lender that buys loans originated by an exempt bank.

Daily Digest – September 1. Mass. AG Sues Auto Lender For Violating State Call Limits; Calif. Legislature Approves State CFPB

Account Recovery

AG SUES AUTO LENDER FOR VIOLATING STATE COLLECTION CALL LIMITS, AMONG OTHER VIOLATIONS The Attorney General of Massachusetts yesterday announced a lawsuit against Credit Acceptance Corp., AG Sues Auto Lender For Violating State Call Limits; Calif.

The importance of Alternative Consumer Credit Data for lenders

Micro Bilt

Alternative consumer credit data offers information about consumers, specifically credit applicants, that does not appear on traditional credit reports. Alternative Consumer Credit Data

Daily Digest – September 16. Site That Helps Consumers Respond to Collection Suits Launches Nationwide; CFPB, State AGs Settle With Lender

Account Recovery

CFPB, STATE AGs SETTLE WITH PRIVATE LENDER; $330M OF STUDENT LOANS TO BE … The post Daily Digest – September 16. Site That Helps Consumers Respond to Collection Suits Launches Nationwide; CFPB, State AGs Settle With Lender appeared first on AccountsRecovery.net.

Colorado Attorney General Announces Landmark Settlement in True Lender Litigation Actions

Troutman Sanders

In June 2020, the court ruled that even if the banks were the “true lenders” of the loans, the platforms as assignees could not stand in the shoes of the banks regarding the loans.

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Lender Response to the Coronavirus Pandemic Could Negatively Impact Your Credit

Titan Consulting

During the Great Recession consumers defaulted on loans in mass, bank stock prices crashed, and lenders foreclosed on 6.3 Even though 2020 is no 2009, in terms of the quality of loan portfolios and the strength of bank balance sheets, lenders quickly reverted to a defensive mode when the pandemic hit. With 30 million newly unemployed individuals within six weeks after a national lockdown due to the Coronavirus pandemic, lenders are seeking ways to reduce risk in existing portfolios.

Daily Digest – July 29. Appeals Court Upholds Dismissal of FDCPA Suit Over Reporting of Multiple Debts; Lender Dismisses Collection Lawsuits

Account Recovery

Appeals Court Upholds Dismissal of FDCPA Suit Over Reporting of Multiple Debts; Lender Dismisses Collection Lawsuits appeared first on AccountsRecovery.net.

Consumer Financial Protection Bureau Settles with Auto Lender for Unfair Loss Damage Waiver Practices

Consumer Finance

The Consumer Financial Protection Bureau settled with Lobel Financial Corporation, an auto-loan servicer based in Anaheim, California. Press release Auto loans Enforcement

More on the failure of disclosure laws: Chen paper explores how Australian payday lenders obscure mandatory warnings

Public Citizen

Vivien Chen of the Monash University - Department of Business Law & Taxation has written Online Payday Lenders: Trusted Friends or Debt Traps? The article examines the marketing strategies of online payday lenders, revealing that the effect of mandatory warnings on the risk of harm are often diminished through website layouts. 43 University of New South Wales Law Journal (Advance 2020).

SBA Loans: How to Maximize Recovery by Liquidating Real Property

Jimerson Firm

When a small business association (“SBA”) loan is converted to liquidation status, the lender must begin liquidating the collateral. If the collateral is real property, the lender must liquidate all parcels of real property that has a Recoverable Value over $10,000.

SBA Loans: How to Maximize Recovery by Liquidating Personal Property

Jimerson Firm

When a small business association (“SBA”) loan is converted to liquidation status, the lender must begin liquidating the collateral. Lenders must liquidate all personal property that has a Recoverable Value over $5,000. Loan Modification and Deferment Requirements for SBA Lenders.

SBA Clarifies Rules Regarding PPP Loans and Changes of Ownership

Fraser

In a recently issued procedural notice , the Small Business Association (“SBA”) addressed a lingering question of borrowers and lenders related to the Paycheck Protection Program (“PPP”) process: What procedures are required for changes of ownership of an entity that has received PPP funds? If SBA consent is required, the PPP lender is required to submit certain documents to the SBA, including documents relating to the transaction and information about the buyer and its ownership.

SBA Loan Site Visits: How to Prepare and What to Expect

Jimerson Firm

Site visits allow lenders and CDCs to gain a first-hand impression of the borrower’s business operations, evaluate risks, and inventory the collateral. Lenders and CDCs should also conduct a site visit whenever warranted by prudent lending practices, even if the loan is not in default.

Mitigating Risks Associated with Hotel, Restaurant and Entertainment Industry Economic Challenges: Part 5 – Commercial Foreclosures 101

Jimerson Firm

Sometimes, foreclosure of a commercial property is the only option available to lenders and servicers to limit losses as a result of defaults on hotel and restaurant mortgages. The lender/servicer must also attach to the certification a correct copy of the note and all allonges to the note.

Lenders Beware: Make Sure Your Borrower’s Organizational Documents’ Blocking Director Provisions Comply With State Law

The Creditors Rights

Many lenders attempt to render their borrower bankruptcy remote by requiring the borrower to have on its board a director, known as a “blocking director,” whose consent is required for any bankruptcy filing. However, in doing so, the lender needs to make sure the organizational documents which impose this condition on the buyer comply with requirements of the law of the state in which the borrower is organized.

Mitigating Risks Associated with Hotel, Restaurant and Entertainment Industry Economic Challenges: Part 4 – Assignment of Rents Under Section 697.07, Florida Statutes

Jimerson Firm

Parts 1-3 of this series explored alternative pre-foreclosure loss mitigation options for lenders including acceleration and enforcement of personal guarantees. To avoid this result, lenders/mortgagees need to regularly monitor the property records.

NY Appellate Court Holds Default Letter Stating Lender “Will Proceed to Automatically Accelerate” Did Not Accelerate the Debt and Thus Did Not Trigger the Statute of Limitations

Blank Rome LLP

2019), the New York Appellate Division, Second Department, held that a notice of default stating that if the loan was not made current, the lender “will automatically accelerate [the] loan,” was “merely an expression of future intent” and therefore did not accelerate the borrowers’ debt. Diana M. Eng and Alina Levi. In U.S. Bank N.A. Gordon , 176 A.D.3d 1006 (2d Dept.

Mitigating Risks Associated with Hotel, Restaurant and Entertainment Industry Economic Challenges – Part 3: Commercial Mortgage Default Options Including Acceleration and Enforcement of Personal Guaranties

Jimerson Firm

In reviewing a loan file after a default by a borrower, lenders should evaluate whether the loan includes an acceleration clause and whether the loan is secured by any personal guaranties. As such, immediately upon default, the lender can pursue enforcement of the guaranty.

Eighth Circuit Holds a Lender to a Special Purpose Entity is not a “Person Aggrieved” by an Order Substantively Consolidating the SPE’s Bankruptcy Estate with Another Estate

The Creditors Rights

Lenders often go to great lengths to ensure their borrowers are Special Purpose Entities —entities whose assets will not be commingled with the assets of parent or affiliated companies—rendering bankruptcy filings by the SPE less likely. The Eighth Circuit recently answered this question in the negative, holding a lender to a special purpose entity is not a person aggrieved by an order of substantive consolidation and, therefore, lacks standing to appeal the order.

Five Things You Should Know About Tenant Screening

Troutman Sanders

ALL CFS Blog Entries Credit Reporting & Data Brokers Mortgage Lenders & ServicersIf you have ever leased an apartment, house, or storefront, you have probably agreed to a background check or asked the applicant to do so.

Overview of Florida’s New Uniform Commercial Real Estate Receivership Act

Jimerson Firm

This new legislation is likely to be important to lenders and borrowers due to the anticipated higher volume of commercial foreclosures due to economic effects of the current COVID-19 pandemic.

Delaware Bankruptcy Court Holds LLC Operating Agreement Provisions Placing Sole Power in the Company’s Lender to Prevent a Bankruptcy Filing are Void as Against Public Policy

The Creditors Rights

In an important decision for debtors and creditors alike, the United States Bankruptcy Court for the District of Delaware has ruled that provisions in a limited liability company operating agreement, granting the company’s lender absolute power to prevent the company from filing a bankruptcy petition are unenforceable as against public policy.

CFPB Weighs in On the Side of the Debt Collector in FDCPA Dispute Over $0.00 in Interest and Fees

Troutman Sanders

All Entries Mortgage Lenders & Servicers

What are the Conditions Precedent (if any) to Perfecting a Claim to an Assignment of a Life Insurance Policy as Security Collateral for a Loan?

Jimerson Firm

When lenders take life insurance policies as collateral for loans, they need to be aware of what needs to occur to place a claim in the event their borrower dies. Furthermore, in the event the collateral was pledged to multiple lenders, lenders will need to know how to discern whether their assignment of life insurance takes precedent over the collateral interest of a competing secured creditor.

Oregon Banks and Trade Association File Declaratory Action Requesting Relief from State Legislation Alleged to be Retroactively Applying Lending Obligations More Onerous Than the CARES Act

Troutman Sanders

Lenders of both commercial and residential loans secured by real estate in Oregon are affected by the Bill, which creates restrictions against lending activity, imposes affirmative obligations upon lenders, and creates a private cause of action for borrowers.

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Certification of Original Promissory Note is Required To Bring a Mortgage Foreclosure Action

Jimerson Firm

Accordingly, banks or other residential mortgage lenders should be aware of the requirements under Section 702.015 to ensure they properly bring their mortgage foreclosure action and avoid any possible sanction the court may order for failure to comply.

Dunning Letter with Zero Balance for Interest and Other Charges Not Misleading to Reasonable Unsophisticated Consumer under the FDCPA, Holds Seventh Circuit

Troutman Sanders

All Entries Consumer Financial Protection Bureau (CFPB) Debt Buyers & Collectors Mortgage Lenders & Servicers State Attorneys General, CFPB, & FTCPlaintiff Joseph Degroot defaulted on a credit card debt, which was subsequently placed with a collection agency.

Fannie Mae Updates COVID-19 Servicing FAQ

Troutman Sanders

Fannie Mae and Freddie Mac provided temporary guidance to lenders due to COVID-19 on various topics related to servicing mortgage loans. All Entries Mortgage Lenders & Servicers