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Entries in Consumer Lending (10)


FDIC to Host Series of Free Teleconferences on Important Regulatory Matters

The FDIC plans to host a series of free teleconferences, including a conference on Mortgage Loan Originator compensation, a conference on the topic of deposit insurance coverage, and a full-day conference on the role that community banks play in the economy and their unique challenges and opportunities.

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Maine Law Court Issues Rare Opinion Interpreting Truth-In-Lending Act

The Maine Law Court recently issued an opinion in Deutsche Bank National Trust Company v. Pelletier (“Deutsche Bank”) regarding a consumer’s rights under the federal and Maine Truth-In-Lending Acts (“TILA”). Such opinions are quite rare, with the Law Court’s next most recent decision interpreting TILA having been issued in 1993, and prior to that in 1984.

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Two New Maine Laws Related to Mortgages

Financial Institutions should be aware of two recent amendments to Maine’s laws related to mortgages, both of which became effective on September 27, 2011. One new law requires mortgagees to provide mortgagors with a copy of the release of mortgage after recording. The other law enables mortgagors to recover attorneys fees in certain foreclosure proceedings where the mortgagee is not the prevailing party. Here are the details.

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Consumer Financial Protection Bureau releases its first examination manual

The Consumer Financial Protection Bureau (“CFPB”) has released the first version of its Supervision and Examination Manual. The Manual is organized into three parts and is intended to be a guide for examiners regarding how financial service providers should be examined for compliance with consumer financial laws.

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Bureau Issues Proposed Rules Regarding Regulation Z-2 and the Tangible Net Benefit Rule

On September 27, 2011, the Superintendant of the Bureau of Financial Institutions issued notice of two proposed rules in light of the passage of Public Law 2011, Chapter 427, “An Act to Amend the Maine Consumer Credit Code to Conform with Federal Law.” 

The first rule would repeal Regulation Z-2, Truth in Lending (Bureau of Financial Institution Regulation 38 and Bureau of Consumer Credit Protection Chapter 240), which dates back to 1981.  As a result of Public Law 2011, Chapter 427, which incorporates federal truth-in-lending regulations into Maine law, the Bureau considers Regulation Z-2 out-of-date and duplicative.  State-chartered banks and credit unions would look to the Maine Consumer Credit Code for any distinctions from federal truth-in-lending laws.

The second rule would eliminate Bureau of Financial Institutions Chapter 144, which implemented Section 8-506 of the Maine Consumer Credit Code.  Section 8-506 imposed restrictions and requirements on certain residential mortgage loan practices, such as determinations of a reasonable, tangible net benefit from a higher-priced mortgage loan and a prohibition on “flipping.”  Chapter 144 Public Law 2011, Chapter 427 exempted supervised financial organizations from Section 8-506, rendering Chapter 144 (Bureau of Consumer Credit Protection Chapter 550) inapplicable to state-chartered banks and credit unions.

The deadline for public comment on the new rules is October 31, 2011.  A link to the Bureau’s notice may be found here:

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