Sheppard Mullin Financial Institutions Law Blog

Question:        Does a lender violate the unfair competition law by disclosing, on a HUD-1 Settlement Statement, the costs it charged home loan borrowers, as opposed to the actual costs it incurred?

Answer:        Yes, according to the Court of Appeal in McKell v. Washington Mutual, Inc., 06 C.D.O.S. 8836 (Sept. 18, 2006).

Question:        Are payment streams stripped from bundled equipment leases chattel paper or "payment intangibles" eligible for automatic perfection? 

Answer:        Payment intangibles, according to the Bankruptcy Appellate Panel (Ninth Circuit) in In re Commercial Money Center, Inc., 06 C.D.O.S. 8391 (Aug. 25, 2006).