AFSA, Trades File Amici in Mortgage, Vehicle Financing Cases

The 1st Circuit Court of Appeals on Thursday April 4th accepted an amicus brief in Thompson v. JPMorgan Chase filed by AFSA and its sister trades. The trade associations are asking that the court grant Chase’s petition for rehearing or for rehearing en banc. The case has far-reaching consequences for the residential mortgage loan industry in Massachusetts. If rehearing is not granted, the decision may invalidate thousands of foreclosures already conducted in Massachusetts, resulting in consumer confusion and harm. Specifically, the decision has the potential to cloud title in thousands of mortgages in Massachusetts.

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On April 10, the California Court of Appeal granted AFSA leave to file an amicus brief in the matter of Ron Miller Enterprises v. Lobel Financial Corporation, Inc. Ron Miller Enterprises financed the inventory of King Kars, who sold the financed vehicles to consumers. The retail installment sales contracts were sold to Lobel Financial. King of Kars became insolvent and Ron Miller sued Lobel claiming the amount owed on the inventory financing agreement. The trial court ruled in Lobel’s favor and the Court of Appeals reversed.

The amicus filed by AFSA requests a rehearing, noting that the original decision by the Court of Appeals incorrectly resolves the priority dispute between the inventory lender and the purchase of consumer paper.

The amici are available on the Legal & Regulatory area of AFSA’s website. For more information, contact Celia Winslow, Vice President of Legal & Regulatory Affairs.