Oct 02, 2012 11:13
A Sageworks roundup of recent banking industry news you might have missed: Nevada court hears case on caps for deficiency judgments; Wells Fargo wins SBA servicing agent gig; CFPB role so far catches industry off guard.
Nevada Supreme Court considers limits on mortgage default collections
The Nevada Supreme Court on Monday listened to oral arguments in three cases dealing with a law that limits how much money real estate investors can recoup from troubled mortgage borrowers and their backers, according to an article on the news website VegasInc.com. The law, Assembly Bill 273, caps how much a lender can collect in a “deficiency judgment,” esepecially when lenders acquire the debts from other lenders, the article said.
Lawyers at the hearing focused on whether the caps could apply retroactively to foreclosures and loan defaults that took place before Gov. Brian Sandoval signed the bill in June 2011. Lenders argued the bill was meant to help homeowners rather than commercial mortgage borrowers and was not intended to apply retroactively, Vegas Inc. reported. Read the entire article here.
Wells Fargo replacing Bank of NY Mellon as SBA servicing agent
The Small Business Administration awarded a five-year contract to service a $23.6 billion portfolio of 503/504 loans, including more than 53,000 small business loans, to Wells Fargo & Co. (NYSE: WFC). American Banker said Bank of NY Mellon had the job for 20 years. The 503/504 loan program is available to nonprofit certified development companies set up to provide real estate financing to small businesses, the article noted.
Read the press release from Wells Fargo here, and the story on AmericanBanker.com here.
AP: New CFPB barks, industry shudders
The Associated Press profiled the work of the Consumer Financial Protection Bureau in the 14 months of its existence, saying the agency’s behind-the-scenes efforts have caught the financial industry off guard and been much more aggressive than expected.
The agency has issued 100 subpoenas demanding data, testimony and marketing materials, and its actions have banks, payday lenders and credit card companies scrambling to respond and adjust to the new environment, the AP reported. Read the entire article, published on InsuranceJournal.com here.