California Federal Court Confirms Tender Requirement to Foreclosure Challenge

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP    It is not unusual for a borrower to challenge a foreclosure by a court action against a foreclosing lender. However, inLane v. Wells Fargo Bank, the Federal District Court for the Eastern District of California dismissed the case of a foreclosed homeowner who […]

Unconscionability: New Weapon for Commercial Borrowers?

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP    On August 13, 2018, California’s Supreme Court published a decision on unconscionability that sent shockwaves through the California lending industry.  We expect to see it being used, not only against non-prime consumer loans, but also against business purpose and commercial loans, which are […]

CFPB Must Say Why Before Investigating You

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP    Let’s face it, it takes guts to stand up to the Consumer Financial Protection Bureau, the federal Dodd-Frank watchdog agency. Once such challenge was decided on September 6, 2018 by the federal Fifth Circuit Court of Appeals in Consumer Fin. Prot. Bureau v. Source […]

Default Interest: New Challenges Expected

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP  On July 3, 2018, Los Angeles Bankruptcy Judge, Sheri Bluebond, laid to rest the notion that an innocuous 5% default interest rate increase on a commercial loan default was safe.  In re Altadena Lincoln Crossing LLC, Case No.: 2:17-bk-14276-BB. In 2004, Altadena obtained $20.5M in […]

California Passes Small Business Truth-in-Lending Law

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP  In response to complaints about small businesses being gouged by finance companies, on September 30, 2018, California enacted Senate Bill No. 1235, the so called “Small Business Truth-in-Lending Law (“SBTL”).  It is the first of its kind in this country.  It aims to protect […]

Challenge To DRE’s Attack On O/O Business Purpose Loans

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP    Financial Code Sections 4970-4978.8, California’s High Cost Mortgage Law, became law in 2001. It applies to “covered loans,” meaning consumer loans under the Fannie Mae conforming loan limit secured by borrowers’ principal dwellings where one of two thresholds are crossed: (a) the APR […]

DRE Withdraws Its Attack On O/O Business Purpose Loans

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP    Doss Law, LLP is pleased to announce that on September 6, 2019, the California Department of Real Estate agreed to: A.  Dismiss all charges, fines and audit expenses against KS Capital and Bobby Kashani, completely clearing their names; B.  Publish an article on its […]

Mortgage Debt Regulated By Consumer Debt Collection Law

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP  Recent legislation signed into law will affect mortgage lenders, servicers, brokers and attorneys who seek to collect mortgage debt from California consumers. In 1977, Congress enacted the Fair Debt Collection Practices Act (“FDCPA”) to “eliminate abusive debt collection practices by debt collectors, to insure […]

Loan to Business Entity Homeowner Struck Down

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP  As most readers know, loans to business entities, such as corporations and limited liability companies, are exempt from nearly all consumer protection statutes, including the Federal Truth-in-Lending Act, Real Estate Settlement Procedures Act, Safe Act and California High Cost Law contained in Financial Code […]

HMDA Threshold Raised By CFPB

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP    Very good news for small lenders and brokers.  On April 16, 2020, the CFPB raised the threshold for the number of residential mortgage loans that a lender must make before being subject to HMDA reporting.  Effective July 1, 2020, the new threshold will […]