BLT: September 2015



Business & Corporate

Using Academic Factors to Reach the Invisible Borrowers: Could It Run Afoul of ECOA?

Many Americans are left standing outside of the credit market without feasible options for building the credit history required for entry. Increasingly, the credit industry is applying nontraditional factors when reviewing an applicant for credit. This article will explore those factors, specifically those factors related to an applicant’s academic record, and the risks associated with utilizing such factors, especially the potential for claims of disparate impact.

Business & Corporate

The First CFPB Administrative Appeal: RESPA, Kickbacks, and the Danger of De Novo Review

As it enters its fourth year of operation, the CFPB continues to flex its muscle in new and sometimes startling ways. The latest advance for the CFPB was unveiled in the decision of Director Richard Cordray in the case In the Matter of PHH Corp., et al. Many are still struggling to grasp the full implications of the decision. After a brief discussion of the factual background, we will examine the decision’s myriad legal ramifications and what insight it provides for future CFPB enforcement proceedings and administrative appeals.

Business & Corporate

Dodd-Frank Section 342: An Analysis of an Emerging Regulation Impacting the Financial Services Industry

Section 342 of the Dodd-Frank Act created Offices of Minority and Women Inclusion in federal agencies that regulate the financial services industry. The goal of these standards is to provide a framework for regulated entities to promote transparency and awareness of diversity policies and practices within the entities regulated by the agencies. Notably, the standards provide that entities voluntarily perform self-assessments and voluntarily report the results of these assessments to the agencies and to the public. This article provides an overview of Section 342.

Business & Corporate

Re-Gramming, Hashtagging, and Like-Gating: Sweepstakes in the New Digital Age, and How New Laws May Actually Improve Your Promotions

The basic tenets of promotions and advertising law have remained relatively static for decades. The widespread use of handheld digital devices and social media as a contest and sweepstakes delivery platform, however, is a proverbial game-changer, opening companies to both new and exciting ways to reach consumers, but also to potentially greater legal liability if they don’t set up their promotions properly.


Business & Corporate

KEEPING CURRENT: SEC Adopts Final Pay Ratio Disclosure Rule

In a narrow 3–2 vote, on August 5, 2015, the SEC adopted a new final rule requiring most registrants to annually disclose the pay ratio between its principal executive officer's total compensation and the median compensation of its employees. Reporting companies must begin complying with the new rule for the first fiscal year beginning on or after January 1, 2017, meaning that for calendar year reporting companies, the new disclosure must appear in their 2018 proxy statement with respect to the 2017 reporting period.

Business & Corporate

MEMBER SPOTLIGHT: An Interview with Nikki Munro

In 2012, Nicole Frush Munro was appointed the ABA’s Consumer Financial Services Committee Chair, the youngest chair in the history of the Committee. Early on, at Hudson Cook, LLP, in Hanover, Maryland, Munro carved out a niche practice, focusing on automobile finance and personal property lending. She writes extensively on the topic for trade publications, gives lectures, and travels around the country, talking to legislators.