Five Legal Topics for Washington Bankers to Consider This Fall
Lane Powell Attorneys Joan Robinson and Barry Abbott co-authored an article in the September/October 2013 issue of Washington Bankers Association’s Issues and Answers magazine titled “Five Legal Topics for Washington Bankers to Consider This Fall.” In the article, Robinson and Abbott provided tips for bankers on loans that are secured by residential real estate, the Uniform Commercial Code Article 9, domestic partnerships, overdraft charges and arbitration clauses.
1. Loans Secured by Residential Real Estate. With the Senate’s approval of Director Cordray’s appointment, the Consumer Financial Protection Bureau’s (“CFPB”) extensive rulemaking is likely not subject to challenge. As a result, it’s time to review again the laundry list of new CFPB rules. Probably the most complex are the new mortgage rules. While some of the new regulations are already effective, mortgage lenders and servicers will need to comply with eight new residential real estate rules by January 2014, including the Ability-to-Repay/Qualified Mortgage Rule and the new servicing rules. While the scope and complexity of these rules cannot be fully explored in this brief discussion, the new regulations apply to both closed-end and open-end loans secured by either principal- or non-principal dwellings, and the penalties for certain violations (including a material violation of the Ability-to-Repay Rule) can result in forfeiture of all fees and finance charges.