The Office of the Comptroller of Currency (“OCC”) recently established that it will use its authority to grant special-purpose charter to allow FinTech companies into the banking system. The charter details have not yet been finalized. In order to apply for this special-purpose charter, a company must engage in fiduciary activities, or either one of […]
Continue reading →We are consulting with an investment management firm on potential changes in commercial real estate. Our client has asked for an overview of how the Trump presidency might affect the CMBS risk retention rules and High Volatility Commercial Real Estate(“HVCRE”) rules. The scope of our review also includes an analysis on GSE’s and possible effects […]
Continue reading →What’s Next? Some experts in the financial services industry, believe that the new Trump administration may change or roll-back a portion of the Dodd-Frank legislation. Financial institutions, mortgage companies, securitization sponsors, etc. must continue to treat current regulatory requirements as applicable to the business. It is important to differentiate the commitment to protection of consumers […]
Continue reading →We consult with marketplace lenders and community banks and other lenders to create a strategic partnership to meet both parties’ business goals. It may be more cost effective to partner with a FinTech provider or marketplace lender than to create a new platform. We offer a value-based consulting product to analyze goals, prepare a strategic […]
Continue reading →My recent presentation for Lambda Alpha. We discussed the PHH Corp. et. al. vs CFPB case which was decided Oct. 11, 2016 by the US court of Appeals for the DC Circuit. PHH argued that the authorizing legislation for the CFPB creates an unconstitutional independent agency officer not subject to review by any branch of […]
Continue reading →A California Court of Appeals Case, LSREF2 Clover Property 4, LLC v. Festival Retail Fund 1, LP, decided in October, 2016, 3 Cal. App. 5th 1067, looks at the value of a guaranty in an affiliated transaction. The Court discussed the issue of “sham guaranties” based upon the fairly common facts described below. The court […]
Continue reading →The US District Court for the Central District of Ca. granted the Consumer Financial Protection Bureau’s (“CFPB”) Motion for Partial Summary Judgement on August 31, 2016. This is a trial court decision and could be reversed on appeal. The “combination” at issue related to CashCall’s arrangement with Western Sky Financial (“Western”). Western claimed an “affiliation” […]
Continue reading →Husky Int’l Electronics v. Ritz (US Supreme Court 2016). This case is about Bankruptcy Code 11 U.S.C. 523 which defines which debts are non-dischargeable in bankruptcy. Most common examples are a debt incurred by way of fraud or false representation, fraud in a fiduciary capacity, domestic support obligations or willful or malicious injury. The opinion […]
Continue reading →The Credit Risk Retention Rule (see OCC Bulletin 2015-8) (the “Rule”) imposes these requirements on firms, that package financial securities, into asset-backed securities by organizing a securitization transaction. The final rule defines qualified residential mortgages (“QRM”) to include all loans that meet the qualified mortgage definition defined in Section 129c of the Truth and Lending […]
Continue reading →The recently enacted Housing Opportunity through Modernization Bill (2016) (the “ACT”) , allows HUD Section 8 vouchers to be used to make mortgage payments and to pay property taxes and insurance on manufactured homes. A Section 8 voucher can now be used to cover the cost of purchasing a manufactured home rather than only for […]
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