Marcus Korff on LinkedIn: ASIC sues Westpac for failing to respond to hardship notices (2024)

Today, the #SupremeCourt kicked a case involving National Bank Act preemption back to the lower court for further consideration without providing the clarity some may have wanted to see. At issue - a New York law requiring #mortgage #lenders to pay #interest on #escrow accounts, one of about a dozen or so similar state laws. Rather than reaching a conclusion as to whether these specific types of laws are preempted, the Court unanimously ruled that the appellate court applied the wrong standard when it ruled that the state law requiring interest in escrow accounts was preempted for national banks. State laws that "significantly interfere" with a national bank's ability to exercise its powers are preempted, meaning a federally chartered bank does not need to comply with such laws. When enacting the #DoddFrank Act, Congress took steps to narrow the parameters of preemption of state law for national banks. Today's opinion instructs courts to look at the specific law being challenged and determine whether that law is of the type historically preempted for banks, or not preempted for banks. This is not a bright line test, but more of a case by case assessment under the #SCOTUS ruling:"A court applying [the standard] must make a practical assessment of the nature and degree of the interference caused by a state law. If the state law prevents or significantly interferes with the national bank’s exercise of its powers, the law is preempted. If the state law does not prevent or significantly interfere with the national bank’s exercise of its powers, the law is not preempted. In assessing the significance of a state law’s interference, courts may consider the interference caused by the state laws" assessed in prior Supreme Court cases (Barnett Bank of Marion Cty., N. A. v. Nelson). The case is being sent back to the appellate court, so keep an eye out for future developments on this issue.The full opinion can be found here:https://lnkd.in/erZkKzjT

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Here is our blog about the implications and takeaways from this scary opinion which demonstrates how 9 Justices on the Supreme Court who know virtually nothing about how banks operate are given free reign to develop a completely impractical approach to ascertaining the extent to which the National Bank Act preempts state law. The following statement from the opinion sums up the difficultly courts will have in making preemption determinations going forward:“We appreciate the desire by both parties for a clearer preemption line one way or the other. But Congress expressly incorporated Barnett Bank into the U.S. Code. And in determining whether the Florida law at issue there was preempted, Barnett Bank did not draw a bright line.”In order to operate efficiently for the benefit of all its stakeholders, national banks need certainty with respect to making preemption determinations. The Supreme Court’s opinion is the antithesis of what is needed. This opinion will benefit nobody but the plaintiffs’ class action bar. This may be a propitious time to implement arbitration for all consumer contracts. https://lnkd.in/e3WZmEBc

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Protect Yourself:Spotting and Avoiding No-Credit-Check Loan Scams(A Must-Read Guide)Financial stability is crucial in today's uncertain climate. Yet, amidst rising expenses and potential job insecurity, the allure of quick-fix loans can be tempting. Unfortunately, this desperation can be exploited by predatory lenders offering seemingly attractive "no-credit-check" loans.The statistics are alarming:1. The Federal Trade Commission (FTC) reportsAmericans lose over $1 billion to fraud annually, with loan scams being a significant contributor.2. Similar trends are observed in countries like the UK, Australia, and Canada.Protecting yourself is paramount. This guide equips you with the knowledge to identify and avoid no-credit-check loan scams:** Red Flags to Watch Out For:**1. Guaranteed approval, regardless of credit history:Legitimate lenders assess creditworthiness to ensure responsible lending. Be wary of promises that seem "too good to be true."2. Upfront fees and hidden charges:Legitimate lenders typically don't require upfront fees before loan approval. Beware of excessive or undisclosed charges.3. High-pressure tactics and rushed deadlines:Scammers often pressure you into quick decisions to cloud your judgment. Take your time to research and understand the terms.4. Unprofessional communication and suspicious contact methods:Watch out for unprofessional emails, aggressive phone calls, or pressure to use unconventional payment methods.5. Lack of transparency and unclear loan terms:Be wary of unclear agreements, missing information, or difficulty contacting the lender.️ Building Your Defense:1. Research and verify lenders:Check their licensing, online reviews, and Better Business Bureau ratings.2. Never share sensitive information without verification:Legitimate lenders won't require sensitive details like bank account numbers upfront.3. Seek trusted advice:Consult financial advisors or credit counseling services for guidance.4. Report suspicious activity:Inform the FTC, Consumer Financial Protection Bureau (CFPB), or relevant authorities in your country.Remember, safeguarding your financial well-being is your responsibility. By educating yourself and staying vigilant, you can navigate the loan market with confidence and avoid falling prey to predatory scams.Share this post to raise awareness and protect your network!Source: https://lnkd.in/gzrfqSX

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The Supreme Court today decided Cantero v. Bank of America which involves the question of whether the National Bank Act preempts a NY state law requiring the payment of 2% interest on mortgage escrow accounts. The Second Circuit held that the NY law was preempted because it purported to exert control over a national bank’s power to establish mortgage escrow accounts. The Supreme Court reversed and remanded the case to the Second Circuit and instructed the Second Circuit to apply the holding of the earlier Supreme Court opinion in Barnett Banks (National Bank Act preemption exists only if there is “significant impairment “ of a national bank.’s powers, which was codified in the Dodd-Frank Act.) The Supreme Court then gave examples of earlier opinions finding National Bank Act preemption of state laws and no preemption of state laws. None of these examples involved a state law remotely similar to the NY payment of interest on mortgage escrow accounts statute. To make matters even worse for the Second Circuit, the Supreme Court hardly even mentioned the NY law, let alone analyzed it. The scary part of this opinion is the suggestion that there must be an evidentiary hearing (presumably in the District Court) to determine whether the NY law significantly impairs the Bank’s power to establish and operate mortgage escrow accounts. The term “significant impairment” is vague. Also, the Supreme Court may be suggesting that the preemption determination could vary from bank to bank. Shortly after the enactment of Dodd-Frank, the OCC promulgated a regulation saying that many categories of state laws were automatically preempted. Because the Dodd-Frank provision itself states that Chevron deference could not be given to OCC regulations, the Bank never argued that the Second Circuit or the Supreme Court should defer to those regulations. Many, if not most, national banks reasonably relied on the OCC’s categorical preemption which the Supreme Court has now rejected. Will that be sufficient to avoid liability. The takeaway from this opinion is that national banks may have to take a fresh look at all potentially applicable state laws, not just those dealing with mortgage escrow accounts,with which they are not complying and determine, after conducting a thorough “significant impairment”analysis whether they should change their positions. This is a time consuming and costly exercise but one that may be necessary to avoid class action litigation. One option is to wait until the Second Circuit re-decides the case. Hopefully, we will then have a clearer picture of the preemption rules.This statement from the opinion sums up the difficultly in preemption determinations going forward: “We appreciate the desire by both parties for a clearer preemption line one way or the other. But Congress expressly incorporated Barnett Bank into the U. S. Code. And in determining whether the Florida law at issue there was preempted, Barnett Bank did not draw a bright line.”

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This may be a one off but mistakes on your credit file are, to quote Tom Jones, not unusual.If you only ever look at your 'score' you risk mistakes going unnoticed. Check your repayment history, ensure it is correct. Check your credit limits and balances that show on your report. It takes a couple of minutes but may be the difference between getting that mortgage or not.#creditreport #creditagency #bankofireland #experian #equifax #callcredit #checkmyfile #mortgage#Commercial #Mortgages, #Property #Finance, Business LendingSimple, straightforward expertisewww.lime-fs.comLime Finance Solutions - We are on 𝘆𝗼𝘂𝗿 side

This may be a one off but mistakes on your credit file are, to quote Tom Jones, not unusual.If you only ever look at your 'score' you risk mistakes going unnoticed. Check your repayment history, ensure it is correct. Check your credit limits and balances that show on your report. It takes a couple of minutes but may be the difference between getting that mortgage or not.#creditreport #creditagency #bankofireland #experian #equifax #callcredit #checkmyfile #mortgage#Commercial #Mortgages, #Property #Finance, Business LendingSimple, straightforward expertisewww.lime-fs.comLime Finance Solutions - We are on 𝘆𝗼𝘂𝗿 side

It's a new year! It’s important to check your credit report regularly to ensure there are no errors.Did you know you can also request a copy of your credit report for free once per year? Read on to learn more. 🙂 #creditreporting #mortgage #finance

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On May 30, 2024, the Supreme Court reversed the Second Circuit’s holding that a New York General Obligation Law that mandates banks to pay borrowers the interest accumulated on a balance held in an escrow account for residential mortgages on certain types of properties was preempted by the National Bank Act because the Second Circuit did not conduct the requisite comparative analysis codified in Dodd-Frank.More from Aleksandr Altshuler and James "Jim" Sandy: https://lnkd.in/gEBhFZNU#NBA #banking #mortgage #escrow #consumerfinance #litigation #litigationbyte

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#ComplexitySimplified Companies use credit scores to decide on whether to offer you a mortgage, credit card, auto loan, and other credit products, as well as tenant screening and insurance rates. These things may be less critical for folks with well-established credit and without the need to purchase big-ticket items as opposed to young people who are just starting to establish credit and buy a house, new car, and other things. However, credit scores also determine the interest rate and credit limit you receive—which you may still need, regardless of age or life phase.

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Falling property values are exposing mortgage fraud schemes from the days of cheap debt — and regulators are taking notice. Federal prosecutors and regulators are tracking a noticeable uptick in falsified financial reporting on loan documents from the mid-2010s through 2021. Rising interest rates have left many of the landlords at those properties struggling to stay afloat, exposing their schemes and leaving them open to prosecution.It’s a general trend throughout history that fraud occurs during boom times and is revealed during bust times.The role of property appraisals is at the core of the financial malfeasance. Lenders typically accept valuations presented by reputable developers and landlords, trusting the numbers to be accurate.Reporting deflated costs and inflated revenue through rents, for example, can secure better loan terms or higher dollar values. When rates are low, those loans can perform, but as rates rise, actual rents don't go as far to cover interest expenses. Federal prosecutors are boosting their efforts to expose this fraud.#cre #commercialrealestate #Commercialrealestateadviser #commercialproperty #creinvesting

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