The California Residential Mortgage Lending Act (CRMLA) was enacted in 1994 and went into effect in 1996. The CRMLA was enacted as an alternative to the existing laws licensing lenders under the Real Estate Law and the California Finance Lenders Law (CFLL), with the purpose of providing mortgage bankers with a licensing law specifically intended to regulate their primary functions of originating and servicing residential mortgage loans.
Gibson, the iconic Nashville-based guitar company filed for bankruptcy relief under Chapter 11 in Delaware on May 1, 2018. The filing occurred as a result of the manufacturer’s failed efforts to convert itself into a musical lifestyle company. Gibson manufactures guitars, banjos, and mandolins and its subsidiary, Baldwin, manufactures pianos. Gibson’s guitars include the Les Paul, SG, J-45, and Hummingbird. However, the company believed that expanding into electronics and creating a music-based lifestyle brand was the key to continued growth. This belief turned out to be a costly mistake.
Blockchain technology has been in the news consistently for more than a year. This technology has the potential to transform many industries, including those that are multiply diverse. A blockchain provides a means of creating and maintaining an immutable and transparent database and ledger that may be distributed and shared by authorized users.
In the bankruptcy case, In re Olson, 2018 WL 989263 (B.A.P. 9th Cir. Feb. 5, 2018), the Bankruptcy Appellate Panel (BAP) for the Ninth Circuit overturned the dismissal of a bankruptcy case. The case had been dismissed based on the lower court’s belief that the landlord debtor was receiving rental income from a marijuana dispensary.
On May 8, 2018, the House of Representatives approved S.J. Res. 57 by a 234-175 vote. The Senate narrowly passed the same proposal approximately three weeks earlier on April 18 by a vote of 51-47. The resolution disapproves of a 2013 guidance document on indirect auto loans issued by the Consumer Financial Protection Bureau (CFPB). President Trump signed the joint resolution into law on May 21, 2018, as expected. This congressional action marks the first time the Congressional Review Act (CRA) has been used to target a guidance issued well before the CRA’s usual 60-day window.
As reported by this blog, in May of 2017, Puerto Rico filed for the equivalent of bankruptcy to relieve over $120 billion dollars in debts and pension obligations. Puerto Rico claimed that it was “unable to provide its citizens effective services.” Of course, the ramifications of such a filing are significant and have far-reaching effects. At this time, broader concerns have surfaced about potential overcharging and conflicts of interest in improving the U.S. Territory’s failing infrastructure.
The California Residential Mortgage Lenders Act (CRMLA) regulates the origination and servicing of residential mortgage loans in California. The CRMLA requires that any person engaged in the business of making or servicing residential mortgage loans within California do so only under the authority of a license under the CRMLA. A party applying pursuant to the provisions of the CRMLA may obtain a license as a servicer, lender, or both. However, the following entities are exempt from these licensing requirements:
In March, a unanimous Supreme Court ruled that the Ninth Circuit correctly reviewed a bankruptcy court’s ruling for clear legal error rather than employing the de novo “arm’s length” standard used in the Third, Seventh, and Tenth Circuits. In U.S. Bank Nat’l Ass’n v. Village at Lakeridge, LLC, No. 15-509, 583 U.S. ___ (2018), the United States Supreme Court ruled on whether the bankruptcy court properly determined in confirming a plan that the sole impaired accepting creditor was not a “non-statutory” insider. Had this creditor been such an insider, the chapter 11 plan should not have been confirmed.
The California Residential Mortgage Lenders Act (CRMLA) was enacted by the California legislature as an alternative to existing licensing laws related to lenders under the Real Estate Law and the California Finance Lenders Law (CFLL), The purpose of the CRMLA was to provide mortgage bankers with a licensing law for the specific purpose of regulating the origination and servicing of residential mortgage loans. The CRMLA directly authorizes and regulates mortgage banking activities, unlike the Real Estate Law and the CFLL. A party applying pursuant to the provisions of the CRMLA may obtain a license as a servicer, lender, or both.
Recently, the Ninth Circuit decided JPMCC 2007-C1 Grasslawn Lodging, LLC v. Transwest Resort Props. Inc., et al. (In re Transwest Resort Props. Inc.), Case No. 16-16221, 2018 U.S. App. LEXIS 1947 (9th Cir. Jan. 25, 2018)(“In re Transwest“). Prior to this case, there was a significant split in the lower courts between the “per plan” or “per debtor” impaired accepting class requirement to the confirmation of chapter 11 plans of reorganization. The Ninth Circuit was the first Circuit court to render a decision on this issue.