CFPB Issues Advisory Opinion on Digital Shopping Platforms for Mortgages
The Consumer Financial Protection Bureau (CFPB) has warned that Digital Mortgage Comparison-Shopping Platforms may violate the Real Estate Settlement Procedures Act’s (RESPA) anti-kickback rules. At issue are digital platforms or “online marketplaces” that enable potential borrowers to comparison shop options for mortgages and other settlement services. These websites allow potential borrowers to enter limited information that is typically part of a mortgage application, and then the platform operator purports to compare various mortgage options based on the information. The provided options typically generate paid leads for the suggested lenders and the website operator often sells the potential borrower’s contact information.
Down the Rabbit Hole: Assessing the Reach of Amended Rule 7.1
Rule 7.1 of the Federal Rules of Civil Procedure has long required each “nongovernmental corporate party” to file a disclosure statement when that party takes its first action in a federal court lawsuit. Effective, December 1, 2022, however, the rule was amended to require that when a case that is in federal court because of diversity jurisdiction is filed or removed, each “party or intervenor” must file a disclosure statement that provides the “name—and identif[ies] the citizenship of—every individual or entity whose citizenship is attributed to that party or intervenor.”
FTC Issues Notice of Proposed Rulemaking to Ban Employee Non-Compete Agreements
In a move sending shockwaves through the business world, on January 5, 2023, the Federal Trade Commission (“FTC”) proposed a new rule that would ban employers from entering into non-compete agreements with their workers and invalidate existing non-compete agreements. The FTC will be accepting comments on the proposed rule for the next 60 days.
Pregnant Workers Fairness Act Becomes Law
In addition to funding the federal government, the recently passed $1.7 trillion government funding package included passage of the Pregnant Workers Fairness Act (“PWFA”). Employment law attorney Robin McGuffin takes a look at what this means to employers.
The Twelve Days of I.P. Christmas
As we come to the end of the year, the members of the Intellectual Property and Technology group at Stites & Harbison took time to reflect upon some of the amazing things that have occurred in the world of Intellectual Property. In a light-hearted review of some of our favorite finds from 2022, please enjoy our own take on the classic carol, "The Twelve Days of Christmas."
Medical Cannabis in Kentucky: Executive Action Dated November 15, 2022 - Impact on Kentucky Employers
On November 15, 2022, Governor Andy Beshear signed an Executive Order, which under certain circumstances, grants a “full, complete, and conditional pardon” to individuals who are accused of possession of marijuana under K.R.S. 218A.142.
Bankruptcy Discharge Trumps PACA, But Does It Really?
In a case of first impression, the 11th Circuit Court of Appeals ruled in Spring Valley Produce, Inc. et al. vs. Forrest, ____ F.3d____(11th Cir. Case Number 21-12133) on August 31, 2022, that the right to a discharge in bankruptcy trumps the longstanding language of the Perishable Agricultural Commodities Act (“PACA”)(7 U.S.C. §499a-499t) which purports to bar bankruptcy relief under theories of fiduciary duties owed to certain sellers of agricultural products.
HHS Releases New Guidance Regarding the Privacy of Reproductive Health Information
In the wake of the recent Supreme Court decision overturning Roe v. Wade, the Department of Health and Human Services (HHS) published guidance on June 29, 2022, regarding an individual’s privacy rights for reproductive health and abortion services under the Health Information Portability and Accountability Act (HIPAA). Shea Luna takes a look at the guidance in this client alert.