Feb. 24, 2014


  • Michael, once again you've succeeded in providing valuable insight and understanding on this topic. Thanks again for a very informative piece.
  • Borrowers will win 100% of cases because the creditor will always negotiate a settlement rather than expose themselves to a jury attempting to unravel the complicated fact pattern involved in determining Ability to Repay using the eight underwriting factors. It's a reasonableness standard which can only be finally determined by a jury. So, 60 hours for borrower's counsel? Way too low an estimate. The borrower's attorney will serve discovery requests on the entire institution to determine whether a class action is appropriate, or even just to look for patterns that might bolster their case, once they get past summary judgment, as they will. This will cause lender's counsel time to skyrocket as well. Every case will get settled if the borrower's attorney will let you. You will be lucky if they let you. These rules are a ticking time bomb and a future meltdown in the next recession. People are going to be shocked and the money supply will once again massively contract when lenders realize they don't know how to lend safely to the Middle Class.