July 5, 2022

Home loan servicers in West Virginia (and the other states covered by the U.S. Court of Appeals for the Fourth Circuit – Maryland, North Carolina, South Carolina, and Virginia) now have more clarity about borrower complaint letters that trigger a duty under the Real Estate
Settlement Procedures Act (RESPA) and Regulation X to respond to the complaints.

As you know, leading a bank today has never been more challenging; to borrow a phrase from an old General Motors advertisement, “It’s not your father’s
bank.” You and your team work harder than ever to generate income through traditional lending activities and a growing portfolio of services, and as if that isn’t difficult enough in a
post-pandemic, politically-charged, inflationary environment, you find yourself swimming in change, from climate investing and disclosures to cryptocurrencies to ever-evolving
ransomware risks.

The effective date for the current expected credit loss (CECL) standard is fast approaching for all financial
institutions that have not yet implemented it.

On March 13, 2020, near the beginning of the pandemic in the U.S., the CARES Act included a pause for all federal student loans. Nearly 90 percent of student borrowers accepted “the option of pressing the pause button on their” student loans. Thus, the U.S. Department of Education ceased loan payments, applied a 0% interest rate, and stopped collection on defaulted loans (including garnishments). That pause has been extended repeatedly, and borrowers for certain student loans have not been required to make payments for nearly two years. [1] Despite the pandemic pause, the CFPB has actively been engaged in investigation and enforcement activity relating to student loans.

As foreclosures resume after pauses due to the COVID-19 pandemic, a predictable uptick in lender title claims has followed. Spotting trends in these
claims can help us identify common traps for the unwary. One recurring category of claim issues seen recently is an incomplete legal description that fails to include all of the parcels the parties intended to convey, often resulting in a
significant encroachment or even lack of title to the parcel where the intended residence is located.