Providers of cash advances repaid by sales of future receivables in New York can have greater confidence that these advances are not loans and are not subject to usury laws.
On March 16, the Supreme Court of New York,...more
A fintech company considering a national bank charter will need to consider whether committing to a multi-year business plan is feasible in an industry that is constantly evolving, and in which the ability to respond quickly...more
A careful parsing of state laws should be done if a lender is relying on a choice of law to avoid states that have criminal usury statutes.
On February 27, the U.S. District Court for the Southern District of New York...more
3/8/2017
/ Banking Sector ,
Choice-of-Law ,
Consumer Lenders ,
Debt Collection ,
FDCPA ,
Interest Rates ,
Loan Agreements ,
Loans ,
Madden v Midland Funding ,
National Bank Act ,
Preemption ,
Remand ,
Summary Judgment ,
UDAAP ,
Usury
The bulletin requires relationships between banks and marketplace lenders to be treated with the same rigor of due diligence and ongoing oversight as other relationships with third parties.
On January 24, the Office of...more
2/22/2017
/ Banking Sector ,
Banks ,
Consumer Lenders ,
Due Diligence ,
FDIC ,
Financial Institutions ,
FinTech ,
Innovation ,
Innovative Technology ,
Loans ,
Mortgages ,
OCC ,
Online Marketplace Lending ,
Risk Assessment ,
Risk Management ,
Small Business ,
Student Loans ,
Technology ,
Third-Party Relationships
During this webinar, panelists will address whether a fintech company should apply, and what is involved in obtaining the proposed fintech OCC charter....more
1/9/2017
/ Banking Sector ,
Capital Requirements ,
Consumer Financial Protection Bureau (CFPB) ,
Financial Institutions ,
FinTech ,
Fintech Charter ,
Government Investigations ,
Liquidity ,
OCC ,
Popular ,
Webinars
Whether the long and arduous chartering process, ongoing examination and supervision requirements, substantial capital requirements and limitations on initial rapid growth will outweigh the benefits of the bank partnership...more
While certainly a big blow to the Bureau, the court’s remedy did not go as far as some CFPB opponents would have liked.
In a blockbuster ruling on October 11, the U.S. Court of Appeals for the District of Columbia...more
10/13/2016
/ Administrative Proceedings ,
Article II ,
Banking Sector ,
Constitutional Challenges ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Due Process ,
HUD ,
Insurance Industry ,
Kickbacks ,
Mortgage Insurance ,
Mortgages ,
PHH Corp. v CFPB ,
Popular ,
Referral Fees ,
Reinsurance ,
Removal For-Cause ,
RESPA ,
Single Director ,
Statute of Limitations ,
Statutory Interpretation
The court explicitly acknowledged that making it difficult for banks to assign or sell their commercial property to the secondary market impedes good public policy.
On September 20, the U.S. District Court for the...more
The case provides an outline of issues to consider and structures to avoid in designing bank collaboration models in the future.
On August 31, in Consumer Financial Protection Bureau v. CashCall, Inc., the U.S....more
9/14/2016
/ Banking Sector ,
CashCall ,
Consumer Financial Products ,
Consumer Financial Protection Act (CFPA) ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Financial Institutions ,
Home State Exception ,
Interest Rates ,
Internet Lenders ,
Native American Issues ,
Online Marketplace Lending ,
Payday Loans ,
Popular ,
Tribal Loans
The Solicitor General’s brief argues the Second Circuit’s holding was incorrect, but does not recommend a grant of certiorari.
On May 24, the U.S. Solicitor General and the Office of the Comptroller of the Currency...more
9/6/2016
/ Banking Sector ,
Consumer Lenders ,
Financial Services Industry ,
Interest Rates ,
Madden v Midland Funding ,
National Bank Act ,
OCC ,
Online Marketplace Lending ,
Preemption ,
SCOTUS ,
Solicitor General ,
Usury
Regardless of whether or not Midland’s case is successful at the district court, there are a number of reasons why the Second Circuit’s Madden decision is not as disastrous as some have portrayed it to be.
On June 27,...more
7/8/2016
/ Banking Sector ,
Consumer Financial Products ,
Consumer Lenders ,
Debt Buyers ,
Financial Services Industry ,
Interest Rates ,
Lending Club ,
Madden v Midland Funding ,
Online Marketplace Lending ,
Petition for Writ of Certiorari ,
SCOTUS ,
Solicitor General ,
Usury ,
Valid When Made Doctrine
The proposed rule raises troubling issues regarding the impact on some traditional bank products as well as some marketplace lending products.
The Consumer Financial Protection Bureau (CFPB or Bureau) released its...more
The U.S. Supreme Court will likely consider whether to grant or deny certiorari in the Madden v. Midland Funding case at its June 23 conference. In addition, Midland filed a supplemental brief with the Supreme Court on June 7...more
The new partnership structure will ensure WebBank is financially invested in the loans it originates, continues to have an ongoing contractual relationship with the borrower, and that the economics of the bank are tied to the...more
The FDIC continues to be the one regulator with the most cautious outlook regarding marketplace lending.
The Federal Deposit Insurance Corporation’s (FDIC’s) February 1 issue of Supervisory Insights continues the...more
The FDIC’s new requirements will substantially increase the costs imposed on banks that wish to purchase marketplace loans.
On November 6, the Federal Deposit Insurance Corporation (FDIC) issued Financial Institution...more
Not worried about cybersecurity at your financial institution? Then you are in the minority. Cyber-risk was identified as the number one worry of bank risk managers at a panel of bank chief risk officers at the American...more
In This Presentation:
- Regulatory expectations for financial institutions
- Risks for financial institutions
- Planning to reduce risks
- The Breach
- Duties and responsibilities
-...more
6/23/2015
/ Banking Sector ,
Cyber Attacks ,
Cybersecurity ,
Data Breach ,
Enforcement ,
FFIEC ,
Financial Institutions ,
Regulatory Agencies ,
Regulatory Oversight ,
Risk Assessment ,
Security and Privacy Controls ,
Strategic Planning
The Consumer Financial Protection Bureau (CFPB or Bureau) announced on March 17 that it is seeking public comment, via a Request for Information, ahead of a second study on the credit card market. With this request, the...more