X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LANSING, Mich. – In a case described as having “national significance” and concerns the ability of the Michigan Commissioner of the Office of Financial and Insurance Services to supervise non-bank mortgage lenders in order to protect consumers and the public interest, OFIS Commissioner Linda Watters appeared in the U.S. District Court for the Western District of Michigan on March 5 for a hearing on a Motion of Summary Judgment in the case of Wachovia Bank, N.A. and Wachovia Mortgage Corporation v. Linda Watters. Wachovia is seeking a Motion for Summary Judgment imposing a permanent injunction prohibiting the Commissioner from enforcing Michigan’s mortgage laws against any mortgage lenders operating as a subsidiary of a bank. Wachovia also seeks a declaration by the court that Michigan’s mortgage laws are fully preempted by the National Bank Act. According to the OFIS, if the court rules for Wachovia, mortgage subsidiaries of nationally chartered banks would no longer be regulated by state banking commissioners, “stripping them of their authority to protect consumers.” “I believe Michigan consumers expect their state regulator to pursue complaints against national bank subsidiaries operating in Michigan when federal authorities decide to take no action,” said Watters. “This case has national significance, and a loss would be a double-whammy – a loss for consumers and states rights.” In addition to hearing oral arguments from the parties involved, one Amici argued on behalf of each side. Professor Art Wilmarth from the George Washington University School of Law and a nationally recognized expert of banking law argued on behalf of OFIS. A lawyer from the OCC argued for Wachovia Mortgage. An amicus brief of the Attorneys General of 40 states and the District of Columbia was also entered on behalf of OFIS.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.