Friday, June 5, 2020

FYI: California AG Issues Final Text of California Consumer Privacy Act Regulations | WEBINAR ON JUNE 30

On June 1, 2020, the Office of the California Attorney General filed its proposed Final Text of Regulations relating to the California Consumer Privacy Act (CCPA) with the California Office of Administrative Law (OAL)

 

The regulations are identical to the Second Modified Regulations issued by the attorney general on March 11, 2020.  Any changes would have required an additional notice and comment period.

 

Pursuant to the California Administrative Procedure Act, the OAL has 30 days to review the attorney general's documents to ensure compliance with rulemaking standards. 

 

This means the regulations could become effective and enforceable by July 1, 2020, the deadline set forth in the CCPA.  The attorney general notes, however, that the 30-day review period could be extended an additional 60 days pursuant to the COVID-19 Executive Order N-40-20 issued by Gov. Gavin Newsom on March 30, 2020.

 

The attorney general's website contains a significant amount of information relating to its CCPA rulemaking process, including:

 

-  The reasons for each modification made since the original proposed regulation;

-  Its responses to comments submitted, with cross references to the specific parties that submitted the comments; and

-  Transcripts from the four public hearings.

 

The CCPA became effective on Jan. 1, 2020, and the filing of the regulations marks the near end to what has been an eight-month rulemaking process. 

 

It is anticipated the OAL will approve the regulations, such that businesses subject to the CCPA should follow through with final updates to their CCPA policies and procedures.

 

The attorney general can seek civil penalties up $2,500 for each non-intentional violation and up to $7,500 for each intentional violation.

 

 

WEBINAR

 

Now is the time to fine-tune your CCPA compliance.

 

On June 30, 2020 at noon ET, please join us to learn how to get your business ready to comply with the CCPA during "CCPA Enforcement is Almost Upon Us! Are You Ready?"

 

Please click here to register.

 

 

 

Ralph T. Wutscher
Maurice Wutscher LLP
The Loop Center Building
105 W. Madison Street, 18th Floor
Chicago, Illinois 60602
Direct:  (312) 551-9320
Fax: (312) 284-4751

Mobile:  (312) 493-0874
Email: rwutscher@MauriceWutscher.com

 

Admitted to practice law in Illinois

 

 

 

Alabama   |   California   |   Florida   |   Georgia  |   Illinois   |   Massachusetts   |   New Jersey   |   New York   |   Ohio   |   Pennsylvania   |   Texas   |   Washington, DC

 

 

NOTICE: We do not send unsolicited emails. If you received this email in error, or if you wish to be removed from our update distribution list, please simply reply to this email and state your intention. Thank you.


Our updates and webinar presentations are available on the internet, in searchable format, at:

 

Financial Services Law Updates

 

and

 

The Consumer Financial Services Blog

 

and

 

Webinars

 

and

 

California Finance Law Developments 

 

Tuesday, June 2, 2020

FYI: 1st Cir Holds Note Acceleration Did Not Trigger Massachusetts 5-Yr SOL for "Obsolete Mortgages"

The U.S. Court of Appeals for the First Circuit recently held that the acceleration of the maturity date of a note does not affect the five-year limitations period for the related mortgage under Massachusetts's obsolete mortgage statute.

 

In so ruling, the First Circuit also confirmed that MERS can legitimately assign a mortgage without holding beneficial title to the underlying property.

 

A copy of the opinion is available at:  Link to Opinion

 

In March 2007, a couple ("Borrowers") obtained a mortgage loan from a lender ("Lender") to purchase a property in Massachusetts. The Borrowers executed a promissory note memorializing the loan and a mortgage identifying MERS as the mortgagee, acting "solely as a nominee" for the lender and the lender's successors and assigns. The mortgage also granted MERS and its successors and assigns power of sale over the property.

 

In January 2008, MERS assigned the mortgage to an asset securitization trust ("First Trust"). In February 2010, the First Trust reassigned the mortgage to itself as trustee for a different asset securitization trust ("Second Trust").

 

The Borrowers defaulted on their loan in 2008. They then filed several bankruptcy petitions and requested injunctive relief, thereby delaying foreclosure until 2016.

 

After the servicer provided notice of a foreclosure sale in June 2016, the Borrowers sued the loan owner and servicer in federal court to enjoin the sale, arguing the MERS assignment of the mortgage to First Trust was invalid.

 

The trial court denied Borrowers' request for a preliminary injunction and granted the loan owner's and servicer's motion to dismiss.

 

Borrowers appealed to the First Circuit, arguing that (1) the servicer cannot foreclose on their property under Massachusetts General Laws Chapter 244, § 14, and (2) the mortgage is obsolete by operation of Massachusetts General Laws Chapter 260, § 33.

 

As you may recall, under Massachusetts's obsolete mortgage statute, a mortgage becomes obsolete and is automatically discharged five years after the expiration of the stated term or maturity date of the mortgage.

 

The First Circuit held that MERS can validly assign a mortgage without holding beneficial title to the underlying property (Culhane v. Aurora Loan Servs. of Neb., 708 F.3d 282, 291-93 (1st Cir. 2013)), and that Borrowers do not have standing to challenge a mortgage assignment based on an alleged violation of a trust's pooling and servicing agreement (Butler v. Deutsche Bank Tr. Co. Ams., 748 F.3d 28, 37 (1st Cir. 2014)).

 

The Court also held that a mortgage contract can validly make MERS the mortgagee and authorize it to assign the mortgage on behalf of the lender to the lender's successors and assigns.

 

Next, the First Circuit held that Borrowers' "obsolete mortgage" claim has no basis in the plain text of the statute or in precedent as nothing in the text of the statute supports the Borrowers' assertion that the acceleration of the maturity date of a note affects the five-year limitations period for the related mortgage.

 

The Court found Borrowers citation to the Massachusetts Supreme Judicial Court's ruling in Deutsche Bank National Trust Co. v. Fitchburg Capital, LLC, 28 N.E.3d 416 (Mass. 2015), inapposite because the decision makes no mention of the impact of an accelerated note on the obsolete mortgage statute's limitations period.

 

Accordingly, the First Circuit affirmed the trial court's ruling.

 

 

 

Ralph T. Wutscher
Maurice Wutscher LLP
The Loop Center Building
105 W. Madison Street, 18th Floor
Chicago, Illinois 60602
Direct:  (312) 551-9320
Fax: (312) 284-4751

Mobile:  (312) 493-0874
Email: rwutscher@MauriceWutscher.com

 

Admitted to practice law in Illinois

 

 

 

Alabama   |   California   |   Florida   |   Georgia  |   Illinois   |   Massachusetts   |   New Jersey   |   New York   |   Ohio   |   Pennsylvania   |   Texas   |   Washington, DC

 

 

NOTICE: We do not send unsolicited emails. If you received this email in error, or if you wish to be removed from our update distribution list, please simply reply to this email and state your intention. Thank you.


Our updates and webinar presentations are available on the internet, in searchable format, at:

 

Financial Services Law Updates

 

and

 

The Consumer Financial Services Blog

 

and

 

Webinars

 

and

 

California Finance Law Developments