Monthly Archives: August 2015

Webinar to Discuss California’s One Form of Action Rule

Aug. 21, 2015 — Maurice Wutscher attorneys will present a webinar on Aug. 25 discussing California’s one form of action rule.

The Supreme Court of California is currently reviewing two significant appellate court rulings involving the “one form of action” rule: Coker v. JP Morgan Chase Bank, N.A., 218 Cal. App. 4th 1 (4th Dist. 2013) and First California Bank v. McDonald, 231 Cal. App. 4th 550 (5th Dist. 2014).

In Coker, to resolve a nonjudicial foreclosure, the mortgagee of a purchase-money loan conditioned a short sale on the borrower’s agreement to remain responsible for any deficiency. A copy of the Appellate Court’s ruling in Coker is available here: Link to Opinion.

McDonald involves a judicial foreclosure on a mortgage loan made to a husband and wife, where the husband was deceased, and the mortgagee did not obtain the consent of the deceased husband’s estate prior to liquidating part of the collateral owned exclusively by the wife. A copy of the Appellate Court’s ruling in McDonald is available here: Link to Opinion.

The issues presented for review before the Supreme Court of California in these two cases are:

1. Does a borrower waive the protection of the “security first” rule under California Code of Civil Procedure section 726 by agreeing to a short sale?

2. Can a servicer condition a short sale on waiver by the borrower of the anti-deficiency protections under California Code of Civil Procedure section 580b?

3. Does a servicer violate California Code of Civil Procedure section 726 when it consents to a borrower’s voluntary ″short sale″ of her own property without obtaining the consent of a co-borrower who has no ownership interest in that property?

4. When there is a violation of Section 726, should alternate remedies, short of the servicer losing its right to pursue a deficiency judgment, be available to the courts where the servicer acted in good faith and there has been no prejudice to the co-borrower?

5. Does Pacific Valley Bank v. Schwenke (1987) 189 Cal. App. 3d 134, remain good law after the California Supreme Court’s decision in Security Pacific National Bank v. Wozab (1990) 51 Cal. 3d 991, which bars a loss-of-debt penalty in the absence of evidence of lender bad faith?

For more information and to register, click here.

Webinar to Review Credit Reporting Risks in Bankruptcy

Aug. 7, 2015 — Maurice Wutscher will give a webinar for the credit and collections industry on Aug. 19, “Credit Reporting and Bankruptcy – Latest Risks for Furnishers.”

Recent litigation suggests that both the content and the timing of furnished information before, during and after a consumer bankruptcy poses a unique risk to the credit and collections industry. The webinar will explore issues arising from recent litigation and how furnishers can contain their risk and enhance their credit reporting compliance.

For more information and to register, click here.

Maurice Wutscher Opens Austin Office, Adds Attorney Eric Rosenkoetter

ericrosenkoetterAug. 5, 2015 — National financial services law firm Maurice Wutscher LLP has opened a new office in Austin, hiring financial services attorney Eric Rosenkoetter to lead the firm’s Texas litigation matters in its Austin office.

Mr. Rosenkoetter will practice in the firm’s Commercial Litigation, Consumer Credit Litigation and Regulatory Compliance groups, joining Maurice Wutscher’s skilled team of attorneys focused on defense of the financial services industry in offices throughout the United States.

Mr. Rosenkoetter has substantial experience as a litigation attorney and also brings a solid background as a compliance and transactional attorney for the financial services industry. In that role, he has provided strategic, business growth, legislative, compliance and regulatory advice to national corporations and trade associations. For example, he has drafted consumer contracts and disclosures designed to state-specific statutory requirements, and developed “Best Practices” guides and state-by-state compliance grids, for national financial services companies. He also conducted research and crafted a metrics report for a national trade association with analysis designed to counter the claims of advocacy groups.

Mr. Rosenkoetter’s experience also includes working for a national corporation as executive counsel, chief compliance and ethics officer, and director of legislative affairs, and as a federal lobbyist and director of government and public affairs for a national financial services trade association. In the government sector, he presided over approximately 6,000 state administrative hearings, served as a staff attorney for the Missouri Senate, and handled litigation in 33 counties as a regional managing attorney.

Mr. Rosenkoetter earned his Juris Doctor from Washington University School of Law, and his Bachelor of Business Administration from Southern Methodist University. He is admitted to practice law in Texas and Missouri.

Maurice Wutscher’s Austin office is located at 13785 Research Blvd., Suite 125, Austin, Texas 78750. Eric Rosenkoetter may be reached at (512) 672-7068 or via email at [email protected].