On October 27, 2020, the Office of the Comptroller of the Currency (“OCC”) issued the final version of its “true lender” rule (the “Final Rule”). The Final Rule resolves uncertainty regarding which entity in a lending partnership between a bank and a nonbank lender is the “true lender.” The Final…
In Announcement 2020-12, released September 22, 2020, the Internal Revenue Service (IRS) informed lenders that they should not report qualifying loan forgiveness amounts from covered loans made under the Paycheck Protection Program (PPP) by filing Form 1099-C with the IRS.
Background
As described in…
Dischargeability of student loans is a “hot button” issue in both the bankruptcy world and mainstream media. In fact, last September another colleague wrote about the history of student loan dischargeability, and the current obstacles borrowers face.[1] Since that article, the U.S. Bankruptcy Court…
On July 30, 2020, pursuant to Executive Order 20-39, the Governor of Indiana extended the prohibition on filing foreclosure actions or proceedings involving residential real estate or property through August 14, 2020. The Governor’s directive does not impact the federal “Foreclosure and Eviction…
On July 6, 2020, the United States Court of Appeals for the Seventh Circuit (which covers appeals from federal courts in Indiana, Illinois and Wisconsin) handed down the third in a series of decisions related to Chicago debtors seeking chapter 13 bankruptcy protection in order to avoid or defer…
This is a reminder that pursuant to the March 23, 2020 Order and the May 29, 2020 Order Extending Trial Courts’ Emergency Tolling Authority and Setting Expiration of Other Emergency Orders issued by the Indiana Supreme Court, the Court ordered that “no interest shall be due or charged during this…
On June 30, 2020, Indiana Governor Holcomb issued Executive Order 20-33, extending his March 6th Executive Order (Executive Order 20-02). Of special importance for lenders, Executive Order 20-33 extended the prohibition on residential property evictions and mortgage foreclosures to July 31, 2020.…
In an effort to ease loss mitigation efforts for servicers and assist struggling consumers, The Consumer Financial Protection Bureau (“CFPB”) issued two No-Action Letter (“NAL”) Templates on May 22, 2020.[1] NALs are issued by the CFPB in response to NAL applications submitted by lenders,…
Almost immediately after governors issued stay-at-home orders and the President declared a National Emergency to combat COVID-19, attention turned to the force majeure clauses often found in commercial leases and insurance policies. Now, some three months’ worth of quarantine later, courts are…
On June 16, 2020, the Federal Housing Finance Agency (“FHFA”) announced that government-sponsored entities Fannie Mae and Freddie Mac will extend their single-family moratoriums on evictions and foreclosures until at least August 31, 2020.[1] This extends the previously-issued moratoriums, which…
Earlier this year the Indiana General Assembly passed, and Indiana Governor Eric Holcomb signed into law, Senate Enrolled Act 395 (“SEA 395”) amending several provisions of the Indiana Uniform Consumer Credit Code (the “IUCCC” or the "Code”). For some financial institutions the impact of these…
The Illinois Court of Appeals recently joined the growing list of courts choosing to impose a one (1) year limitations period to enforce rights of rescission under the federal Truth in Lending Act, 15 U.S.C. §§ 1601, et seq. (“TILA”).[1] TILA requires originating lenders in particular consumer…
