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Published Article

Future of Minority Depository Institutions

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On July 26, 2022, the Office of the Comptroller of the Currency (OCC) issued an update to its 2013 policy statement on minority depository institutions (MDIs). Acting Comptroller Michael J. Hsu noted as follows concerning the reason for updating the policy: “MDIs are on the frontlines serving low-income, minority, rural and other underserved communities. They are a critical source of credit to support the financial needs and economic vitality of their communities. The OCC has a long history of recognizing the value of these institutions, and we will continue our efforts to ensure they remain a bedrock of financial access and inclusion.”

Changes to the policy statement include (i) clarifying the definition of an MDI, (ii) describing how an MDI may be formed de novo or by designating an existing bank as an MDI, and (iii) providing examples of support to MDIs. The updated policy statement streamlines descriptions of the OCC’s policies, procedures, and programs relative to MDIs.

Reprinted with permission from the American Bar Association’s Business Law Today August Month-In-Brief: Business Regulation & Regulated Industries.

Insights

Published Article

Maryland Enacts Student Financing Act

June 1, 2023

On May 8, 2023, Governor Wes Moore of Maryland signed HB 913 into law, creating the Student Financing Act (the Act). Under the Act, “student financing” is defined as an extension of credit to a consumer that is (1) not made, insured, or guaranteed under Title IV of the federal Higher Education Act of 1965, (2) extended to a consumer expressly, in whole or in part, for postsecondary education expenses, regardless of whether it is provided by the institution that the consumer attends, and (3) not a loan secured by real property or a dwelling.

Published Article

FHFA Announces Comprehensive Review of the Federal Home Loan Bank System

October 7, 2022

On August 31, 2022, the Federal Housing Finance Agency (FHFA) announced that the agency will conduct a comprehensive review of the Federal Home Loan Bank (FHLBank) System starting in the fall of 2022. As part of the agency’s review, FHFA is seeking feedback from the public on the efficacy of FHLBanks. In particular, FHFA is seeking feedback from the public in six areas:

Published Article

Third Circuit Adopts “Reasonable Reader” Standard for Credit Report Accuracy

August 30, 2022

The Fair Credit Reporting Act (FCRA) 15 USC 1681 et. seq. requires furnishers of information to report the information accurately. Recently, several payment rating/account status cases have been filed and litigated where the Plaintiff’s bar contends the industry’s reporting of account information is misleading and violates the FCRA. However, on August 8, 2022, the U.S. Court of Appeals for the Third Circuit outlined how district courts within the Circuit must analyze credit reports when determining whether an individual tradeline is inaccurate or misleading under the FCRA. This analysis may prove to be the first nail in the coffin of the so-called “payment rating” cases which began in 2015.

McGlinchey Commercial Law Bulletin

Can I recover excess proceeds from a foreclosure sale?

August 19, 2022

McGlinchey’s Commercial Law Bulletin is a biweekly update of recent, unique, and impactful cases in state and federal courts in the area of commercial litigation. We’re pleased to expand our Commercial Law Bulletin from its previous coverage of Ohio case law to include additional areas in McGlinchey’s footprint.

Alert

Third Circuit Adopts “Reasonable Reader” Standard for Credit Report Accuracy

August 10, 2022

You are likely aware that the Fair Credit Reporting Act (FCRA) 15 USC 1681 et. seq. requires furnishers of information to report the information accurately. Recently, several payment rating/account status cases have been filed and litigated where the Plaintiff's bar contends the industry's reporting of account information is misleading and violates the FCRA. However, on August 8, 2022, the U.S. Court of Appeals for the Third Circuit outlined how district courts within the Circuit must analyze credit reports when determining whether an individual tradeline is inaccurate or misleading under the FCRA. This analysis may prove to be the first nail in the coffin of the so-called 'payment rating' cases which began in 2015.

Published Article

OCC Reports Quarterly Improvement in Mortgage Performance

July 12, 2022

servicing portfolios. This quarter, the reporting banks serviced approximately 12.2 million first-lien residential mortgages, with an unpaid principal balance of $2.6T, representing 22% of all outstanding residential mortgage debt.

Alert

CFPB Takes Adverse Action Against Machine Learning

June 3, 2022

The Consumer Financial Protection Bureau (CFPB) has given special consideration to data, algorithms, and machine learning for years. In 2017, as part of a field hearing on alternative data, the CFPB issued a request for information in part to explore “whether reliance on some types of alternative data could result in discrimination, whether inadvertent or otherwise, against certain consumers.”

Published Article

CFPB Report Is A Warning To Consumer Debt Collectors

May 12, 2022

On April 15, the Consumer Financial Protection Bureau issued its annual report on the Fair Debt Collection Practices Act. The report not only looks back at the number and type of debt collection complaints the bureau received in 2021, but also identifies specific debt collection activities that the bureau targeted in the past year.

Published Article

After the Pause

April 6, 2022

The hardship stays provided under New York’s COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 (EEFPA) officially ended on January 15, 2022. What does this mean for lenders, mortgage servicers, and landlords?

News Release

McGlinchey’s Hotchkiss, Lipinski named to CCFL Leadership

November 13, 2020

McGlinchey Stafford is proud to announce the appointment of Lynette Hotchkiss and Kelly Lipinski, attorneys in the firm’s Consumer Financial Services Compliance practice group, to the Governing Committee of the Conference on Consumer Finance Law (CCFL).