Federal Agencies Issue Joint Statement on Responsibility for Federal Consumer Financial Laws

Posted on November 28, 2011 by Fred Rivera

On Thursday, November 17, 2011, the Board of Governors of the Federal Reserve System the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency  issued a joint statement describing how the total assets of an insured bank, thrift or credit union will be measured for purposes of determining supervisory and enforcement responsibilities under the Dodd-Frank Wall Street Reform and Consumer Protection Act.   Under Dodd-Frank, the CFPB has exclusive authority to examine, and primary authority to enforce, compliance with federal consumer financial laws for institutions with total assets of more than $10 billion.  The statement attempts to explain how asset size is measured for this purpose.

For a summary of the statement, read the Perkins Coie Financial Services Bulletin:  New Rules at the CFTC and Fed and a Multi-Agency Joint Statement on Federal Consumer Financial Laws.

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Michigan Supreme Court Approves MERS Foreclosures

Posted on November 17, 2011 by Fred Rivera

In a 4-3 decision, the Michigan Supreme Court approved non-judicial foreclosures instituted in the state by Mortgage Electronic Registration Systems (MERS).  The high court's order overturns an April 2011 lower court decision that determined MERS could not use the state's non-judicial foreclosure mechanism because it had no real interest in the underlying debt.

In the written decision, the Michigan Supreme Court stated that the lower court ruling "is inconsistent with established legal principles governing Michigan's real property law, and specifically foreclosure by advertising."  It continued that the Michigan Legislature did not create "a new legal framework in which an undisputed record holder of a mortgage, such as MERS, no longer possesses the statutory authority to foreclose."

MERSCorp's president and CEO Bill Beckmann stated that the ruling "affirms MERS' business model and will allow the Michigan real estate industry to get back to business and usual."   

Read more at Bloomberg Businessweek: MERS Wins Appeal of Decision Limiting Michigan Foreclosures and Housingwire.com:  Michigan Supreme Court gives green light to MERS

Read the Michigan Supreme Court Order here.

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