Banking Law Prof Blog

Supreme Court to Hear RESPA Case

The U.S. Supreme Court has scheduled oral argument for Monday, November 28, 2011, in FIRST AMERICAN FINANCIAL CORP. V. EDWARDS.

The issues before the Court are:

• Whether the Real Estate Settlement Proceduers Act (RESPA) grants a private cause of action when a kickback does not increase the cost of a settlement service;
• Whether RESPA grants a private cause of action when there is an exclusive referral agreement or denial of an impartial referral.

LInk to briefs:  http://www.americanbar.org/publications/preview_home/10-708.html

(ag) Sept. 22, 2011, in Supreme Court, RESPA, Lending Issues

 

Symposium on Reforming the Secondary Mortgage Market

Hamline University Law School's Business Law Institute presents a great symposium on "Reforming the Secondary Mortgage Market" on Monday, Oct. 3, 2011, from 8 a.m. to 4:30 p.m., in the Klas Center on the Hamline University campus in St. Paul, MN. 

Here's a link to the Symposium schedule: http://law.hamline.edu/Content.aspx?id=2147515075

Link to Registration: http://law.hamline.edu/Content.aspx?ekfrm=2147515032

Speakers include:

• Gary Stern - Former President of the Minneapolis Federal Reserve Bank
• John Ryan - President & CEO of the Conference of State Bank Supervisors (CSBS)
• James C. Sivon - Barnett, Sivon & Natter, Washington, D.C. - representing Financial Services Roundtable
• Lynne Barr - Goodwin Procter LLP, Boston
• Rick Aneshansel - EVP & CFO U.S. Bank Home Mortgage
• Prof. Art Wilmarth - George Washington University Law School
• Prof. Heidi Mandanis Schooner - Catholic University Law School
• Prof. Brett McDonnell - University of Minnesota Law School
• Prof. David Reiss - Brooklyn Law School
• Prof. Julie Hill - University of Houston Law School
• Prof. Erik Gerding - University of Colorado Law School
• Prof. Christine Hurt - University of Illinois Law School
• Prof. Steven Ramirez - University of Loyala Chicago Law School
• Prof. Joan MacLeod Heminway - University of Tennessee Law School
• Prof. Robert A. Brown - Atlanta's John Marshall Law School
• Prof. Elizabeth Renuart - Albany Law School
• Prof. Cheryl Wade - St. John's University law School

Don't miss this spirited debate on a hot topic currently pending before Congress.

(ag) Sept. 19, 2011, in Fannie Mae/Freddie Mac

Is the Federal Reserve the "Ado Annie" of Too-Big-to-Fail?

Remember Ado Annie from the Rodgers & Hammerstein musical "Oklahoma"?  She's "just a girl who cain't say no."

Well, the Federal Reserve is holding hearings on Capital One Financial Corp's proposed $9 Billion takeover of ING Groep NV's online banking unit, which would make Capital One "the 7th-largest U.S. bank with more than $320 billion in assets if it acquires ING and HSBC Holding Plc's U.S. credit card business, which it announced in August."

Reuters reports that the Fed will take a "nuanced approach."

Link ro article "Fed tested on 'too big to fail' in merger review" By Alexandra Alper:

http://www.huffingtonpost.com/2011/09/18/too-big-to-fail_n_968471.html?

(ag) Sept. 18, 2011, in Too Big to Fail

 

Global Competitiveness Report

 

http://www.weforum.org/issues/global-competitiveness

Here's the summary economic outlook from the recently released "Global Competitiveness Report" prepared annually by the World Economic Forum:

"Switzerland tops the overall rankings in The Global Competitiveness Report 2011-2012. Singapore overtakes Sweden for second position. Northern and Western European countries dominate the top 10 with Sweden (3rd), Finland (4th), Germany (6th), the Netherlands (7th), Denmark (8th) and the United Kingdom (10th). Japan remains the second-ranked Asian economy at 9th place, despite falling three places since last year. 

The United States continues its decline for the third year in a row, falling one more place to fifth position. In addition to the macroeconomic vulnerabilities that continue to build, some aspects of the United States’ institutional environment continue to raise concern among business leaders, particularly related to low public trust in politicians and concerns about government inefficiency. On a more positive note, banks and financial institutions are rebounding for the first time since the financial crisis and are assessed as somewhat sounder and more efficient."

(ag) Sept. 17, 2011, in Economy, Global Markets

Crisis in the Housing Market

NPR has been featuring a great series on "Crisis in the Housing Market."

Link:  http://www.npr.org/series/130729880/crisis-in-the-housing-market

(ag) Sept. 14, 2011, in Fannie Mae/Freddie Mac, Lending Issues

CFPB Proposes New RESPA/TILA Disclosures for Comment

The Consumer Financial Protection Bureau has issued the fourth round of proposed RESPA/TILA disclosures for public comment.  Industry commenters are asked to review two loan estimates, identified for comment purposes as "Nandina" and "Jasmine," and select the loan they would recommend to their clients.

LInk:  http://www.consumerfinance.gov/knowbeforeyouowe/

(ag) Sept. 12, 2011, in CFPB, Consumer Protection

Justice Department Looks at S&P and Moody's Rating of Mortgage-Backed Securities

• The U.S. Department of Justice is investigating the rating practices of Standard & Poors and Moody's Investor's Service with respect to mortgage-backed securities (MBS).  Questions abound regarding "whether the companies raised their grades for the complex investments in order to win business."

Link to article by Zeke Faux: http://www.bloomberg.com/news/2011-08-18/s-p-moody-s-mortgage-security-ratings-are-said-to-face-u-s-investigation.html

(ag) Sept. 2, 2011, in Credit Rating Agencies

FDIC Lawsuit Against Bank Directors and the "Insured vs. Insured" and "Regulatory" Exclusions in D&O Policies

Attorney Gregory Pendleton of Edwards, Angell, Palmer & Dodge reports:

"On August 22, 2011, the FDIC sued 17 former directors and officers of Silverton Bank (“Silverton”), as well as two of Silverton’s D&O insurers. Silverton is the tenth failed bank D&O suit filed by the FDIC since July 2010. The FDIC reports that more such suits are in the pipeline: '[a]s of August 4, 2011, the FDIC has authorized suits in connection with 30 failed institutions against 266 individuals for D&O liability with damage claims of at least $6.8 billion.   The Silverton suit, venued in the Northern District of Georgia, is notable because the complaint directly addresses the “Insured versus Insured” and “Regulatory” exclusions found in Silverton’s D&O policies."

Link to Complaint:  http://www.eapdlaw.com/files/upload/SilvertonComplaint.pdf

Link to second article by Gregory Pendleton and John Hughes:  http://plusweb.org/journal/article/100218

(ag) Sept. 2, 2011, in Bank Directors