Have You Considered A Non-Wage Garnishment?
You fought hard for your judgment. Your satisfaction in having won is soon replaced with the knowledge that you still do not have the money that is owed to you. What are your options? Read More ›
Consumer Financial Protection Bureau Weighs Into Rescission Argument Under The Truth In Lending Act
On March 26, 2012, the Consumer Financial Protection Bureau filed an Amicus Brief in the United States Court of Appeals for the Tenth Circuit in which it took the side of the consumer in an interpretation of Section 125 of the Truth in Lending Act relating to the statutory right to rescind certain types of mortgage loans. Read More ›
U.S. Department Of Treasury Issues New Caution On Disclosure Of Suspicious Activity Report
In March 2012, the United States Department of Treasury, Financial Crimes Enforcement Network (FinCEN), issued Advisory Fin-2012-A002 cautioning financial institutions, including their attorneys, of their obligation to keep Suspicious Activity Reports (SARs) strictly confidential. FinCEN noted its concern from the increasing demand by litigants for financial institutions to disclose SARs in civil cases. FinCEN reminded banks, including their current and former directors, officers, employees, agents and contractors, of the prohibition on disclosing SARs or any information that reveals even the existence or nonexistence of a SAR. An unauthorized SAR disclosure violates federal law. 31 U.S.C. §§ 5318(g)(2), 5312 and 5322. Read More ›
Non-Bank Residential Mortgage Lenders And Originators Subject To Anti-Money Laundering And Suspicious Activities Reporting Obligations
In February 2012, the Department of Treasury issued a final rule at C.F.R. parts 1010 and 1029, to now define non-bank residential mortgage lenders and originators as loan or finance companies for the purpose of requiring them to establish anti-money laundering programs and to report suspicious activities under the Bank Secrecy Act. The Bank Secrecy Act defines “financial institution” to include, in part, a loan or finance company, but those were undefined terms in any FinCEN regulation with no legislative history on the meaning of the terms. In 2002, FinCEN temporarily exempted loan finance companies and others from the definition of “financial institutions.” In 2009, FinCEN issued its proposed rule soliciting comments on whether to include non-bank residential mortgage lenders and originators. After extended review and comments, the final rule now includes non-bank residential mortgage lenders and originators (“RMLO’s) in the obligation to include reporting suspicious activities. FinCEN defines a residential mortgage originator as “[a] person who accepts a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan,” though does not include individuals financing the sale of their own property. The March 2012 Advisory Fin-2012-A002 would also apply to these newly included entities. [See separate article at FBT blog on March 2012 Advisory for further discussion.] RMLOs not complying with AML program and SAR filing requirements face potentially serious criminal and civil penalties. Read More ›
Mind Your P's And Q's, Or At Least The Contents Of Your Account
Remember hearing that for a suit on an account, a proper account must be attached to the complaint filed in court? During the latter part of last year, the Court of Appeals in Franklin County, Ohio, reversed a summary judgment against a debtor on the grounds including the failure of a creditor to meet Ohio Civil Rule 10(D)(1) by attaching a proper account. Read More ›
On Account Claim Deficient Where Account Statements Attached To Plaintiff's Complaint Do Not Reflect Purchases And Payments
In Equable Ascent Fin., LLC v. Christian, 196 Ohio App.3d 34, 2001-Ohio-3791 the Court of Appeals in the Tenth District, Franklin County, reversed a trial court’s order granting default judgment to plaintiff credit card account holder on the grounds that the on account claim filed against Defendant debtor Sue Ann Christian (“Christian”) failed because the credit card statements attached to the Complaint were insufficiently detailed. Read More ›
Bankruptcy Court For The Northern District Of Ohio Holds That The Ohio Homestead Exemption Applies Only To Parcel Of Land Upon Which Residence Is Situated
The United States Bankruptcy Court for the Northern District of Ohio recently held that under Ohio law, the homestead exemption set forth in Ohio Rev. Code Ann. § 2329.66 applies to contiguous parcels of land only if those parcels are used for a single purpose as the debtor’s homestead. In re Whitney, 459 B.R. 72 (Bankr. N.D. Ohio 2011). Read More ›
Tips For Improving Outcomes When Negotiating Software Licenses Or Other Information Technology Contracts
In this trying economy, all businesses, including financial institutions, are under pressure to increase performance while reducing staff and overhead. The market has responded to this need with a plethora of software, ASP (“application service provider”) and SaaS (“software as a service”) products (“IT products”). These products offer all kinds of benefits and propose to automate and increase the speed, efficiency and accuracy of many tasks, such as loan pricing, daily financial reporting or debt service analysis. However, with these many new and exciting products now available on the market, financial institutions need to take care to avoid entering into a disadvantageous contract that creates more problems than it solves. Below are tips to help financial institutions keep their eye on the ball when acquiring IT products. Read More ›
Bankers "Boot Camp" Successful Again
Since 2005, Frost Brown Todd has hosted a 2-day commercial lending training program for our financial institution clients. This year, we were honored to have 78 of our clients and friends, from three states, attend over March 12 and 13th. By all accounts this year’s program was the most beneficial and successful yet, until 2013! Congratulations to Kim Mauer, all the presenters, and to all the bank officers who profited from attending the training. Read More ›
Electronic Banking Security And Risk Analysis Guidance
Hats off to the Texas Bankers Electronic Crimes Task Force, and its study of current best risk minimization practices to deter financial crimes, particularly account takeover attacks. The report is recommended reading for CIO’s, security officers and fraud investigators, even if their financial institution resides outside of the Lone Star State. Read More ›
Ask the Blogger
Do you have a topic that you would like discussed in a future blog article? Please let us know. If you have a confidential question regarding a blog article, please feel free to contact the article's author directly, or let us know if you would like for someone to contact you directly.
Attorney Spotlight
William T. Repasky practices with the Litigation Department at Frost Brown Todd. He focuses on lending and commercial services; banking litigation and financial institutions.