Category: Truth in Lending

Who is a Mortgage Broker? Just Ask the Fed.

The United States Court of Appeals for the Second Circuit recently affirmed a magistrate judge’s decision in the District Court for the Eastern District of New York to dismiss a complaint brought under TILA and HOEPA. The complaint sought rescission of two loans secured by a lien on a co-operative apartment on the grounds that certain required disclosures were not made by the lender. Adopting the Federal Reserve’s definition of “mortgage broker” the Second Circuit affirmed the district court’s finding that the appellant borrower failed to establish that the subject loans were procured by a mortgage broker.

“Nonbank” Lender Seeks Injunction Restraining CFPB Administrative Action

On May 9, 2016, Integrity Advance, LLC and its CEO James Carnes filed suit against the Consumer Financial Protection Bureau (“CFPB”) in United States District Court for the District of Columbia seeking to enjoin the CFPB from continuing to prosecute an administrative enforcement action under the Consumer Financial Protection Act (“CFPA”) in which the CFPB alleged unfair, deceptive or abusive lending practices.

When Did Education Become a Consumer Financial Service?

The mission of the Consumer Financial Protection Bureau (“CFPB”) is to “regulate the offering and provision of consumer financial products or services under the Federal consumer financial laws.” See 12 U.S.C. § 5491(a). So why is the CFPB suing ITT Educational Services, Inc., an educational services provider?