Law and legal issues

The two Democrats waded into a court battle over the president's ability to fire a director of the Consumer Financial Protection Bureau.

The industry had welcomed the Consumer Financial Protection Bureau plan allowing debt collectors to use electronic communication, but some worry about the effect of a court decision concerning email correspondence.

By declaring that she has too much statutory power, the agency’s director has potentially opened a floodgate of litigation.

The shareholders' claims against Fannie Mae and Freddie Mac's regulator mirror arguments in cases challenging the Consumer Financial Protection Bureau.

If the court agrees to hear the case, its conservative majority could make it easier for a president to fire a CFPB director, though other outcomes are possible.

Flagstar Bank expects to recover $1 million of its loan to defunct reverse mortgage lender Live Well Financial following the sale of the collateral that secured it.

The agency's director told congressional leaders and staff that she backs a Supreme Court challenge to the bureau's leadership structure.

The Supreme Court may be closer to examining a key restraint on a president's ability to change CFPB leadership.

Stearns Lending canceled plans for an auction after almost two-thirds of its noteholders approved a bankruptcy reorganization proposal that would solidify Blackstone's ownership of the company.

Bankrupt mortgage servicer Ditech Holding Corp. cleared the way for the $1.8 billion sales of its businesses by agreeing to preserve some homeowner claims like the right to fix mistakes on their loans.

When the former vice president and Massachusetts senator appear together in Houston, they could present two contrasting visions of financial policy within the presidential field.

Public orders are an effective way to discourage violations of consumer protection law, the bureau's director said at a credit union conference.

Live Well Financial CEO Michael Hild has been charged with misrepresenting the value of a bond portfolio in parallel actions by the U.S. Attorney's Office and the Securities and Exchange Commission.

Bankrupt mortgage servicer Ditech Holding Corp. saw its reorganization plan rejected on Wednesday after a federal judge ruled the company couldn't sell its mortgage-servicing rights and reverse-mortgage business free and clear of consumer claims.

The industry has long worried that the ability-to-repay rule gives borrowers an avenue to fight foreclosure, but one plaintiff’s experience may discourage others from trying.

New York Attorney General Letitia James is monitoring how the bankrupt Ditech Holding Corp. handles borrower-sensitive issues like foreclosure proceedings, and is backing the involvement of a consumer creditors' committee.

The agency had decided not to challenge a recent court ruling that its structure violates the separation of powers, but newly confirmed Director Mark Calabria now appears willing to the fight the case.

Stearns Holdings and certain subsidiaries have filed for Chapter 11 bankruptcy as part of a restructuring agreement that could reduce debt, increase Blackstone's stake in the company and preserve jobs.

A developer behind projects in the Maine cities of Portland and Saco was sued by a business partner as properties there are scheduled to be sold at foreclosure auctions.

Live Well Financial's creditors are seeking a court-supervised bankruptcy, but the mortgage lender is opposing the move, saying it can get more for certain assets if it sells them before filing.