NEFA Finance Summit 2016

I just returned from the NEFA Finance Summit in New Orleans where I reconnected with colleagues and was a panelist for Legal Regulatory Updates.

My presentation focused on ECOA’s Reg. B and the two (2) Appellate Court decisions in the 6th and 8th Circuits addressing whether a Guarantor is an Applicant under the EOCA definition of Applicant. A decision regarding this important issue is expected shortly by the U.S. Supreme Court. The reason a decision is important is that only Applicants can sue under ECOA or assert a violation of Reg. B as an affirmative defense. If Guarantors are determined to be Applicants, Guarantors and their spouses may sue lenders for requiring guarantor’s spouses to sign guarantees. This is known as the Spouse Guarantor Rule.

I also discussed the requirements incumbent for Lessors or Lenders in notifying applicants of Adverse Action Taken with respect to Applications made for credit. There was a lively Q & A during the presentation.