Bankruptcy Law Section

The Bankruptcy Law Section focuses on issues involving bankruptcy law. The section’s executive committee develops projects for its members ranging from legislative proposals to their annual two-day Bankruptcy Forum and associated social events.

Stites & Harbison PLLC
401 Commerce Street
Nashville, TN 37219
Immediate Past Chair
Anderson & Fugate
114 E Market St
Johnson City, TN 37604

Circuits Split on Definition of ‘Applicant’

In her Journal column this month, Kathryn Reed Edge makes a prediction: "As the financial crisis wanes and fewer banks are plagued by their borrowers’ credit problems, we in the business are seeing the federal banking agencies gear up for an energetic assault on consumer compliance violations." And adding to the confusion that many bank compliance officers have in interpreting the Equal Credit Opportunity Act, she writes that two judicial circuits, the 6th and the 8th, "have split on a seemingly simple issue of the definition of 'applicant' under the ECOA." She explains the important differences and advises readers of her column "Bank On It" to watch the U.S. Supreme Court for an answer.

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Tennesseans to Receive $2.6M in Foreclosure Settlement

More than 2,000 Tennessee residents who lost their homes to foreclosure with Ocwen Loan Servicing will receive a total of $2.6 million in a settlement announced today by the Tennessee Attorney General’s office. Each homeowner should receive a check for approximately $1,100. The agreement settles state and national findings that Ocwen engaged in servicing abuses that resulted in unnecessary and illegal foreclosures from Jan. 1, 2009, to Dec. 31, 2012. It also covers two loan servicers recently acquired by Ocwen: Litton Loan Servicing LP and Homeward Residential Holdings LLC (previously known as American Home Mortgage Servicing Inc. or AHMSI). Those with questions should call (866) 783-5382.

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