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6th Cir. Holds Lender Violated TILA’s ‘Ability to Repay’ Income Verification Rule

In an unpublished opinion, the U.S. Court of Appeals for the Sixth Circuit recently held that a mortgage lender’s reliance upon the borrower’s representations concerning the amount of his future spousal support and rental income without proper verifiable documentation were insufficient to satisfy the “ability to repay” income verification requirements arising under the federal Truth in Lending Act and its implementing regulation (“Regulation Z”).

3rd Cir. Upholds Challenge to Securitization Trusts’ Appointment of Additional Servicer

The U.S. Court of Appeals for the Third Circuit recently held that six Delaware asset securitization trusts could appoint an additional servicer to collect loans in default, but violated the trust documents by transferring to the beneficial owners powers reserved for the trustee.

9th Cir. Allows City of Oakland’s FHA ‘Predatory Lending Discrimination’ Claims to Proceed

The U.S. Court of Appeals for the Ninth Circuit recently held that the city of Oakland’s amended complaint alleging unlawful discriminatory lending practices against a national bank and its parent holding company sufficiently stated a claim that its decreased property tax revenues, but not its increased municipal expenses, were proximately caused by the alleged predatory lending practices.

Calif. App. Court (4th Dist) Rejects Jurisdictional Challenge in Website Accessibility Case

In an action challenging the accessibility of a website to blind and visually impaired people, the Court of Appeals of the State of California, Fourth Appellate District, recently held that a California court may exercise specific jurisdiction over a Georgia LLC where the LLC purposefully availed itself of the privilege of conducting business in California by sending catalogs and selling over $300,000 worth of goods to California residents.

9th Cir. Rejects Challenge to Assumption of Auto Lease in Bankruptcy

In a case of first impression on the issue of “whether a lease assumption can survive discharge even though it is not reaffirmed[,]” the U.S. Court of Appeals for the Ninth Circuit recently held that a creditor’s post-discharge attempt to collect the balance owed under an automobile lease assumed by the debtor post-petition but prior to discharge in a Chapter 7 case did not violate the discharge injunction. 

7th Cir. Rules in Favor of Mortgagee in Insurance Coverage Dispute Involving Fire in Collateral Property

The U.S. Court of Appeals for the Seventh Circuit recently reversed summary judgment in favor of an insurer and against a mortgagee in an action involving state tort claims arising from a deadly fire in the collateral property, holding that an issue of fact existed regarding who was in possession of the property when the fire occurred.

FTC Seeks Comments on FCRA Rules Impacting Motor Vehicle Dealers

The FTC will soon propose changes it says are designed to align several existing rules under the federal Fair Credit Reporting Act with the Dodd-Frank Act. The impacted rules cover only “motor vehicle dealers” being persons “predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.”

Calif. App. Court (1st Dist) Rejects Claims Against Digital Currency Exchange Regarding Unsupported Currency

The Court of Appeals of California, First District, recently held that online digital currency exchange platforms have no obligation, in contract or in tort, to honor "forked" cryptocurrencies unless affirmatively provided for in a user agreement or otherwise.

2nd Cir. Confirms No Private Right of Action for FCRA ‘Direct Dispute’

The U.S. Court of Appeals for the Second Circuit recently held that two plaintiff consumers failed to state a claim under the Fair Credit Reporting Act (FCRA) because the plaintiffs did not allege that they reported the alleged errors to a consumer credit reporting agency or that any such agency notified them of the alleged errors; and there is no private right of action arising from a direct dispute of credit reporting with only the furnisher.