Lender Liability

The Consumer Financial Protection Bureau has promulgated pervasive and dramatic new requirements on servicers, effective Jan. 10, 2014, to provide detailed and accurate information regarding a borrower’s mortgage and options to avoid foreclosure. The rules amending both TILA and RESPA are filled with liability traps for the unwary, including several provisions that conflict with bankruptcy law. At a minimum, the rules will require servicers to implement significant new software, compliance training and procedures to limit legal exposure. Learn from insiders what you need to advise clients.

The panel will address, in an interactive format, the equitable decisions rendered by courts that may modify, diminish or impact secured claims or secured creditors’ pre-petition agreements. For example, the program will cover the limitations on the post-petition effects of a security interest based on the equities of the case, surcharge issues and § 363(k) cause to preclude credit-bidding, as well as other equitable theories.

An integral part of any solvency opinion is the valuation of items such as contingent liabilities including pending litigation, guarantees and other claims that may impact the solvency opinion. The valuation of these items is not always obvious and in some cases is at odds with GAAP. The approach to valuing these items is a blending of corporate and bankruptcy law, accounting standards, economic analysis and valuation theory.