| Court Confirms That Defective Notary Acknowledgments, if Facially Valid, Are Immune From Attack in Kentucky Except In Very Narrow Circumstances |
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January 28, 2008 Link
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Whether a notary’s acknowledgment of a mortgage in a real estate loan transaction is valid can be a source of conflict among secured and unsecured creditors when the borrower defaults on the underlying loan. Submitted by Peter M. Cummins.
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| Subprime Rescue Plan May Require Accounting Changes |
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January 24, 2008 Link
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In December, the American Securitization Forum, whose members include representation from all aspects of the securitization industry, issued a document entitled Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime and Adjustable Rate Mortgage Loans. Submitted by Gerald L. Baldwin.
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| Year End Issuances by Federal Regulators Address a Multitude of Privacy Issues |
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January 24, 2008 Link
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The final weeks of 2007 saw a flurry of regulatory activity by the federal banking regulatory agencies and the Federal Trade Commission. These issuances, whether in the form of final rules and guidelines or proposed rules or guidelines, all address aspects of identity theft prevention and consumer data privacy protection. Submitted by Jane H. Shea.
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| Kentucky Court Says No Fiduciary Duty to Customer |
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January 24, 2008 Link
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In Kentucky, “a fiduciary relationship is ‘founded on trust or confidence reposed by one person in the integrity and fidelity of another … in which a duty is created in one person to act primarily for another’s benefit in matters connected with [the] undertaking.”’ Submitted by Tanya Y. Bowman.
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| Cleveland Sues Major Lenders Over Subprime Lending |
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January 22, 2008 Link
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On January 10, 2007, the City of Cleveland filed suit against twenty one banking and financial institutions alleging that those institutions created a public nuisance by flooding Cleveland’s housing market with subprime mortgage loans. Specifically, Cleveland alleged that the issuance of substantial numbers of subprime loans led to the widespread abandonment of homes, .....submitted by Matthew J. Horwitz
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| The Office of Thrift Supervision Seeks Guidance From the Federal Trade Commission on Unfair and Deceptive Trade Practices |
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January 16, 2008 Link
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In recent months, the Office of Thrift Supervision (“OTS”) has indicated that it intends to take an increasingly active role in regulating the business practices of banking institutions under its regulatory authority. On August 6, 2007, the OTS announced the issuance of an Advance Notice of Proposed Rulemaking (“ANPR”) seeking public comment .....submitted by Matthew J. Horwitz
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| Changes To The Bankruptcy Code Proposed To Deal With The Subprime Mortgage Meltdown |
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January 14, 2008 Link
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As the number of pending and threatened foreclosures increases, Congress is becoming more restive. While the President has proposed a moratorium on upward interest rate adjustments for five years, Congress appears to have changes to the Bankruptcy Code on its mind. Submitted by Gerald L. Baldwin.
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| Court Denies Recovery by Second Mortgage Holder |
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January 7, 2008 Link
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Generally, under Ohio law, the first mortgage that is presented and recorded has preference over a subsequently presented and recorded mortgage. Thus, the priority of a mortgage is easily determined by reviewing the recording chronology. Submittd by Joseph Wells.
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