In this case, the lender’s Truth-in-Lending (TILA) disclosure provided that the borrowers were granting a security interest in the borrowers’ real estate and in all after acquired property as additional security for future advances. The mortgage document did not, however, contain the same language and did not grant a security interest to the lender in […]

In this case, a U.S. Bankruptcy Court ruled that Calumet National Bank’s recorded mortgage was invalid simply because the notary’s acknowledgement did not recite who appeared before the notary and acknowledged execution of the mortgage. Here, debtors borrowed more than $148,000 from Calumet National Bank and signed a mortgage on their real estate securing the debt. […]

The Real Estate Settlement Act (RESPA) parameters have been significantly expanded by recent amendments to both the Act itself, as well as amendments to Regulation X and Regulation Z with the Truth in Lending Act.   Consequently, nearly all mortgages on a member’s one-to-four family residence require additional disclosures be distributed to the applicants.   The regulations expands […]

The Fair Debt Collection Practices Act (FDCPA) as applies to collection attorneys. A U.S. Court of Appeals case for the Third Circuit found that every time a collector, or attorney who is subject to the Act, contacts a debtor in an effort to collect a debt, the creditor’s representative should recite the Mini-Miranda to the debtor, […]

Here, in Utah Bankers Association vs. Utah Department of Financial Institutions et al., fifteen Utah credit unions filed an application with the Utah Department of Financial Institutions to provide service centers for their members. The application sought to allow the Credit Union Service Centers of Utah, Inc. [hereinafter CUSC] to operate service centers for credit […]

In this case, the Bankruptcy Court held that a state court judgment was nondischargeable in bankruptcy. A state court judgment previously found the debtor liable for fraud. Although the federal court has exclusive jurisdiction as to determining dischargeability in bankruptcy, the federal court nevertheless found the debtor was precluded from refuting the state court judgment. […]

This case allowed a Tardy Chapter 13 Claim.  In every Chapter 13 bankruptcy, the court establishes a deadline for creditors to file a proof of claim. Creditors are advised of the last date to file a proof of claim in the initial notice of debtor’s filing for bankruptcy that is sent out by the court […]

Some states have permitted credit unions to obtain deposit insurance for its members through private nonfederal corporations. When this case arose, Missouri permitted such insurance, however, that State legislature now requires deposit insurance be maintained by all credit unions through the National Credit Union Share Insurance Fund (NCUSIF). In this case, Educational Employees Credit Union […]

This U.S. Supreme Court ruling prohibits the debtors ability to “strip- down” a secured mortgage in a Chapter 7 bankruptcy case.    A “strip-down” would allow the debtor to only be obligated to repay the fair market value of the property, even though the outstanding debt may be significantly greater than the value of the mortgaged property.   Here, in […]

Debtor’s Discharge denied by the Court in this Case of excessive pre-filing credit card charges. Here, the debtors incurred nearly $44,000 of charges on their American Express charge card within a two month period. The account statements indicated that during this two month period, charges were placed for eight items of jewelry, including six diamond rings […]