Consumer Financial Services Group HIGHLIGHTS OF 2013 ACTIVITIES K&L Gates consists of more than 2,000 lawyers practicing in 48 offices on five continents around the globe. We maintain one of the most prominent international financial services practices — with more than 200 lawyers representing diversified financial services institutions and their affiliated service providers. Our clients in the Consumer Financial Services Group represent a cross section of the financial services industry, including traditional financial services companies (such as depository institutions, mortgage banks, consumer finance companies, credit card issuers, auto lenders, loan servicers, broker-dealers, investment banks, hedge funds, money services businesses, prepaid card issuers and sellers, and payment systems providers) as well as nonfinancial companies that might incidentally provide financial services to their customers (such as homebuilders, appraisal management companies, retailers, title insurers and agencies, brokers, relocation service companies, and • Represented banks in supervisory technology companies). and enforcement matters with In addition to negotiating transactions, providing regulatory counseling, prudential bank regulators involving defending clients in litigation and government enforcement actions, and allegations of unfair and deceptive acts and practices. advocating on the policy side, our lawyers educate and train clients on the major • Represented student lender in fair industry issues of the day. We strive to be leaders in the consumer financial lending examination by the Consumer services industry by providing webinars, seminars, client alerts, blog posts, and Financial Protection Bureau (CFPB). on-site client training. Below are examples of our group’s activities in 2013. • Represented 11 mortgage lenders in defending investigations by the SELECTED 2013 • Named “Law Firm of the Year” by Department of Justice/U.S. Attorney’s Mergers & Acquisitions magazine Offices and the U.S. Department of FIRM ACHIEVEMENTS in 2013. Housing and Urban Development In addition to numerous specific recogni- • For three consecutive years, K&L Gates (HUD) Office of Inspector General tions of the firm’s partners, practices, was named to the “Global 20,” being under the False Claims Act and the offices, and markets, selected 2013 cited as one of the 20 law firms with Financial Institutions Reform, Recovery, firmwide recognitions include: the greatest global reach and expertise and Enforcement Act related to the origination and underwriting of Federal • K&L Gates’ client service is rated by Law360 in 2013, 2012, and 2011. Housing Administration (FHA)-insured among the best in the world, having • K&L Gates LLP earned top honors as loans and the filing of claims on been named for the second consecu- a “Powerhouse” in two categories— such loans. tive year to the BTI Consulting Group’s Class Actions & Torts and Securities 2014 “BTI Client Service 30,” an elite & Finance Litigation—of the BTI • Represented numerous mortgage ranking that recognizes the leading Consulting Group’s annual Litigation lenders and servicers in defending law firms in driving superior client Outlook survey. K&L Gates is one of enforcement proceedings by HUD relationships according to a survey of only six law firms clients noted among involving allegations of noncompliance general counsel. the best in both areas. with FHA regulations regarding the origination and servicing of FHA- • For the fourth consecutive year, K&L insured loans. Gates was among the top two law 2013 REPRESENTATIVE firms for first-tier rankings in the 2014 • Defended mortgage lender in HUD U.S. News-Best Lawyers survey of ENGAGEMENTS investigation and settlement involving “Best Law Firms” with more than 200, Enforcement claims of discrimination in mortgage including 36 national practice rankings pricing and underwriting. • Represented nationwide mortgage and 167 metropolitan rankings in 18 • Represented depository institution in company in an investigation by multi- locations. The 2014 rankings included CFPB fair lending examination of state mortgage committee, resulting in two national Law Firm of the Year indirect auto lending practices. Work settlement with 35 states regarding recognitions in the areas of Securities included collaborating closely with compliance with state mortgage Regulation and Criminal Defense: economists to develop statistical licensing and regulatory requirements. White Collar. models, assisting with evaluation of business practices and developing factual, legal, and analytical defenses.

Consumer Financial Services Group Highlights of 2013 Activities 2 • Served as counsel in various govern- • Acted as regulatory counsel in connec- • Provide ongoing advice and counsel ment investigations, including a tion with various financings and regarding the sales and servicing Securities and Exchange Commission investments in consumer assets, requirements of the two government- investigation, related to the sale of more including mortgage loans, automobile sponsored enterprises, and than $50 billion of residential mort- loans, time-share loans, consumer . gage-backed securities. loans, motor vehicle service contracts, • Monitored legislative and regulatory and other consumer product • Defended loan originator in HUD activity impacting the business of service contracts. secretary-initiated complaint alleging appraisal management companies violation of Fair Housing Act in connec- • Acted as counsel in connection with (AMCs), assisted clients in obtaining tion with underwriting loans in which implementing consent order regarding AMC licenses and requesting applicable applicants relied on disability income. mortgage practices entered exemptions, facilitated client efforts to into with Board of Governors of the comment on proposed state and federal • Represented loan originator in FHA Federal Reserve and the Federal regulations, prepared research memo- False Claims Act Reserve Bank of New York. randa on AMC statutory requirements, case, including gathering facts and and represented clients in enforcement establishing defenses in response to • Counseled a large bank on compliance proceedings before state appraisal government claims. with regulations and guidelines govern- boards. Assisted clients in analyzing and ing the origination and servicing of • Defended trust company in HUD incorporating into their policies and government insured and guaranteed investigation related to the maintenance procedures new statutory and residential mortgage loans, including of . regulatory requirements impacting the those insured or guaranteed by HUD, appraisal industry. • Defended residential mortgage lenders Veterans Affairs, and Agriculture. This in various HUD and state fair housing work has included a comprehensive • Counseled clients on compliance with agency investigations relating to Fair survey of requirements applicable to regulations and guidelines governing the Housing Act complaints. default servicing, loss mitigation, and servicing industry, with recent focus on • Performed confidential investigation of foreclosure as well as requirements the implementation of the CFPB’s allegations by internal whistleblower related to the origination of single-family newly finalized servicing standards, connected to operations of proprietary residential mortgage loans; specialized including developing loss mitigation mutual fund family and affiliated compliance reviews; drafting, reviewing, programs and related compliance investment advisor. and amending policies and procedures policies and procedures for their loan and quality control processes, servicing operations and reviewing customer relief provisions, and national servicing policies and procedures in Compliance and servicing standards. advance of CFPB examination. Regulatory Matters • Developed compliance policies and • Represented an excess deposit insurer • Advised clients on implementation of procedures on behalf of one of the of cooperative banks in Massachusetts CFPB regulations on ability to repay, largest and most influential trade on various regulatory issues affecting loan originator compensation, and associations in our industry addressing member banks and on issues servicing. the CFPB’s newly finalized servicing arising in connection with troubled standards to be utilized by its members. member banks. • Advised several lender and investor Also assisted in analyzing and prioritiz- clients on the new statutory and regula- ing critical open issues in the servicing tory requirements relating to ability to rule that need clarification from repay, loan originator compensation, the CFPB. adverse steering, and integrated disclosures. • Conducted enterprise-wide review of company’s business lines, operations, and products to assess the level of potential risks to consumers and evaluated the company’s compliance management program. • Performed CFPB readiness reviews for bank and nonbank mortgage and consumer lenders and servicers in anticipation of CFPB compliance exams. • Developed and implemented fair lending compliance monitoring programs for banks and nonbank lenders.

Consumer Financial Services Group Highlights of 2013 Activities 3 “K&L Gates has a standout financial • Served as private mortgage insurer’s government affairs counsel as a regis- tered lobbyist with respect to the services team with impressive strength financial services reform under the Dodd-Frank Act and other in the consumer finance area.” congressional initiatives. – Chambers USA 2013 • Submitted a comment letter to HUD in connection with its proposed rulemaking on the “discriminatory effects standard” information flows within the organiza- Transactions of the Fair Housing Act, 42 U.S.C. §§ tion. Following an audit, we have • Represented a residential mortgage 3601, et seq. The letter urged HUD to assisted in drafting new consents and loan servicer in sale of all of its stock revise the proposed rule to make clear statements, amending policies, and to American Capital Mortgage (public that the Fair Housing Act does not advising on risks associated with REIT) and disposition of unwanted encompass disparate-impact liability, or information handling procedures. assets in connection with the sale. in the alternative, adopt a burden and • Conducted an audit of a large credit standard of proof for that type of claim card provider’s operations, policies, • Represented client in offering of $250 based on governing Supreme procedures, and products to assess million of 9.375 percent Senior Secured Court jurisprudence. compliance with the Australian con- Notes in a 144A placement. Jeffries was the sole book-running manager. The • Advised major mortgage-backed sumer financial services regulatory notes are secured by all of the client’s securities trading organization regarding regime. Identifying the potential risks assets, which are principally mortgage- applicability of disparate-impact theory and advising on appropriate remedial servicing rights and guaranteed by its under the Fair Housing Act to decisions action for the breaches. operating subsidiaries. to exclude trading of mortgage loans • Acted as regulatory counsel for a large within jurisdictions that have imple- credit reporting bureau and regularly • Represented client in the public mented bylaws to use advised on privacy law reforms, includ- tender offer for all of the outstanding powers to purchase and refinance the ing the introduction of comprehensive or common stock of CreXus Investment loans of underwater borrowers. positive credit reporting in March 2014. Corporation, a NYSE-listed REIT and subsequent merger of CreXus into a • Assisted clients to develop a framework This includes advising on wholesale subsidiary of Annaly. The total purchase to evaluate private regulatory change, product design, was slightly under $1 billion. The firm policies, provide comprehensive reviews entity structure, commercial and also successfully represented the client of clients’ flood insurance policies and consumer agreements, and all aspects in the subsequent shareholder procedures for compliance with all of product development from design to derivative lawsuits. applicable federal laws, rules, and terms and conditions. guidance, and for internal consistency, • Acted as regulatory counsel for an • Represented client in a public offering of and advised clients on compliance with organization setting up as a crowd- $200 million of Series B Cumulative federal flood insurance requirements, funder. We assisted the organization by Preferred Stock. Morgan Stanley, JP addressing issues involving complex advising on business structure, drafting Morgan, UBS, and Wells Fargo were financial transactions (, the required licensing documents, joint lead managers. bond transactions, cross-collateraliza- drafting the disclosure documents for • Represented a national bank in sales of tions) and the implementation of investors, and liaising with the govern- servicing rights related to residential the Biggert-Waters Flood Insurance ment, as appropriate, to discuss mortgage loans with aggregate balances Reform Act. regulatory framework. in excess of $370 billion, including • Advised clients in implementing the • Advised a major Australian bank on the concurrent and coordinated individual CFPB’s Equal Credit Opportunity Act development and design of an account sales of sales of servicing rights related (ECOA) Valuation Rule including the aggregation services including develop- to pools with aggregate balances of application of the rule to origination as ing Internet terms and conditions. K&L $215 billion and $93 billion. The well as servicing activities, including the Gates also advised on the various risks servicing rights related to loans owned application of the rule to loan modifica- associated with offering such a service by and securitized with Fannie Mae, tions, short sales, and in lieu and how to best mitigate those risks. Freddie Mac, Ginnie Mae, and private of foreclosure. label securitizations, and involved • Advised on Australian regulatory issues agreements with Fannie Mae and • Advised lenders, payment system for an international payment system Freddie Mac for allocations of related operators, and organizations on sub- operator currently setting up operations liabilities and settlements of claims. The stantial Australian privacy reforms in Australia. K&L Gates has advised on transactions involved detailed arrange- commencing on March 12, 2014. These the licensing regimes that are applicable reforms introduce significant new to payment system operator and how to penalties. The work includes completing best brief the regulators on the new an information audit and identifying the technology.

Consumer Financial Services Group Highlights of 2013 Activities 4 • Represented multiple institutions engaged in wealth management in negotiation of “private label” loan origination and servicing arrangements with third-party vendor. This work included adjustments for new regulatory requirements and regimes, changes in underlying structures of arrangements, and evaluation of and advice concerning existing arrangements with such vendor. • Represented and advised a national bank in connection with arrangements for bulk and flow purchases, servicing, and sale of residential mortgage loans. Transactions included private sales and servicing, small and large loan origina- tors and purchasers, and sales to Fannie Mae. Transactions were moti- ments for ongoing compliance with origination business, reverse-mortgage vated by a variety of strategic business consumer-protection regulations business, loan servicing business, flood purposes and for compliance with and other requirements. insurance certification business, and Community Reinvestment Act require- revolving commercial credit business. ments, requiring a variety of different • Represented a nonbank purchaser of terms and approaches and related Fannie Mae, Freddie Mac, and Ginnie • Negotiated and documented consumer regulatory advice. Mae mortgage servicing rights in a loan origination and servicing software coordinated program of purchases. and outsourcing relationship with • Represented a credit union in negotia- Transactions involved approximately 15 third-party vendor. tion of arrangements for origination, different sellers, in agreements in excess sale, and servicing of loans, • Represented various banks in their of such number, and included bulk and including agreements with separate mergers with another bank and rebrand- flow (including concurrent transfer) outsource service providers for origina- ing in connection therewith. purchases. Our work for this client also tion and servicing, and agreements with included negotiation of multiple subser- • Represented mortgage company in the program sponsor for administration of vicing agreements and related arrange- negotiation and formation of a joint program and future sales of loans. Work ment for servicing of related loans. venture with one of the nation’s largest included advice on consumer regulatory homebuilders to provide purchase compliance and banking matters. • Served as primary transactional and money and residential mortgage loans to regulatory counsel for a large financial • Assisted a leading mortgage company in customers. services corporation in connection with outsourcing its consumer website and the reloadable card program with major • Represented national bank in the asset incorporating material features and retailer. Also served as primary counsel sale of its residential mortgage division functionality unique in the industry. to a privately held purchaser. for the development of several general • Structured, drafted, and negotiated cloud purpose reloadable card products. • Represented asset manager in its stock agreements, professional services • Represented asset management firm in acquisition of a mortgage company agreements, and software licenses related connection with its investments in bank- involved in the origination, sale, and to the information technology infrastruc- issued securities, including purchases servicing of residential mortgage loans. ture and systems for national banks. The transaction involved complex state of securities from the U.S. Treasury that • Represented insurance company in licensing and compliance matters and were originally issued by banks under connection with $60 million takedown of substantial corporate and loan-level the Capital Purchase Program under entire subordinate tranche of an auto due diligence. the Troubled Asset Relief Program ABS warehouse facility. authorized by the Emergency Economic • Represented a newly formed nonbank • Appointed as designated arranger and Stability Act of 2008. purchaser of Fannie Mae and Freddie dealer counsel and as trustee counsel in Mac mortgage servicing rights in • Assisted client in sales of residential relation to Clydesdale £20 billion establishment of a program for pur- mortgage operations following decision residential mortgage-backed note chases of, and issuance of participation of parent insurance company to exit the program. In 2013, we advised a bank interests in, servicing rights to business. Work included plans for as arranger, and other entities as investment funds. separate transactions to sell loan dealers, on the issuance of approxi- mately $800 million Series 2013-1 Notes off the program.

Consumer Financial Services Group Highlights of 2013 Activities 5 • Acted for a major international investment in multiple putative class actions, • Defended national retailer in putative bank in connection with the structuring, mass actions, and individual actions class action lawsuit alleging collection documentation, and implementation of throughout the country. Recent of personal identifying information pur- two repo-backed note transactions. litigation highlights include success- portedly in violation of Massachusetts ful appeal before the West Virginia credit card transaction statute and • Acted for a major Swiss bank and its Supreme Court Appeals on arbitra- Massachusetts unfair and deceptive English subsidiary in connection with a tion and class action waiver issues acts and practices statute. Successfully secured mortgage bond transaction. and dismissal of various cases, resolved matter on behalf of client. • Advised a bank in its role as including mass actions in federal • Advised major mortgage lending trade manager in relation to a European cash and state courts. organizations in analyzing whether to collateralized loan obligation (CLO) backed - Represented a large bank in a bring a declaratory judgment action by a portfolio of assets primarily originated Massachusetts attorney general challenging HUD’s ability to promulgate by the bank. This was the first post-crisis enforcement action alleging unfair a disparate-impact rule under the Fair CLO 2.0 in Europe and is one of a number and deceptive acts in connection Housing Act. of U.S. and European CLO transactions with mortgage foreclosure and that we advised on in the nascent CLO • Filed two briefs as amicus curiae on recordation practices. 2.0 market. behalf of a group of trade organizations. • Represented leading financial institu- The first brief urged the Supreme Court • Served as arranger and bookrunner tion in several putative class actions to grant the petition for a writ of certio- counsel, trustee counsel, and legal alleging that defendants unlawfully rari in documentation drafting counsel in relation Township of Mount Holly, New failed to record mortgage assignments to the £350 million issue of fixed-rate Jersey v. Mount Holly Garden Citizens with respect to loans for which MERS to resolve the important asset-backed bonds due 2053 by a in Action, Inc. is named as the nominee of the lender federal question of whether the Fair leading UK housing association. The and its assigns. Housing Act recognizes a disparate- structure includes retained proceeds and impact theory. The Court granted cer- retained bonds features, fixed security • Served as national coordinating counsel tiorari and accepted the case for review. over a portfolio of social housing proper- for a large servicer to address redaction The second brief addressed the merits ties, and flexibility allowing funds to be issues in over 90 jurisdictions. of the question presented and described used by certain other group members. • Represented leading financial institu- the conflicting interpretations of the Act tion in putative Pennsylvania class over several decades and highlighted Litigation action alleging that defendant loan the harm to the lending industry caused servicers and note holder violated state • Successfully defended national bank by the disparate-impact approach. and federal law and improperly applied client in a five-week class action • Filed a brief as amicus curiae on behalf payments to escrow account in connec- jury trial challenging the use of an of a group of trade organizations in tion with the servicing of plaintiff’s loan. affiliated business arrangement under support of the petitioners in Obtained summary judgment in favor of Magner v. the federal Real Estate Settlement which the court client on all claims brought by plaintiff City of St. Paul, Minn., Procedures Act. The jury rejected had accepted to resolve the important on eve of class certification hearing. plaintiffs’ claim that the ABA mortgage federal question of whether the Fair company was a “sham entity” that • Defended loan originator in putative Housing Act recognizes a disparate- was used to funnel illegal referral fees nationwide class action lawsuit impact theory. The brief described the and kickbacks. In a related action, we alleging violation of Fair Housing Act in conflicting interpretations of the Act also obtained judgment in the client’s connection with underwriting loans in over several decades and highlighted favor in connection with claims that which applicants relied on maternity- the harm to the lending industry caused the bank and the ABA violated the leave income. by the disparate-impact approach. Maryland Finder’s Fee Act. • Handled several residential mort- gage loan servicing litigation matters, including: - Served as national counsel in 15−20 putative class actions around the country alleging violations of con- sumer-banking and credit laws and, in particular, the Home Affordable Modification Program. - Served as outside managing counsel for servicer and predecessor servicing company

Consumer Financial Services Group Highlights of 2013 Activities 6 Licensing HUD Disparate Impact Rule—Understanding the SYMPOSIUM Fair Housing Act’s Discriminatory Effects Standard • Assisted various clients with state and Presented by: Melanie Brody, Paul F. Hancock, Fair and Responsible Banking Symposium agency change in control filings, subse- Andrew C. Glass Hosted by the Consumer Financial Services group quent name changes, legal entity con- March 7, 2013 and Ernst & Young versions, and licensing for expansion May 9, 2013 of activities, including for a publicly Appraisals and Higher-Risk Mortgage Loans traded real estate invested trust (REIT), Presented by: Nanci L. Weissgold an employee stock ownership plan March 19, 2013 GOVERNMENTAL TESTIMONY (ESOP), reverse lenders, loan Licensing Requirements for Emerging Payments Laurence E. Platt testified at a hearing servicers, forward lenders, and an Systems: Are You Legit to Transmit? held by the Committee on Senate Banking, online lead generator. Presented by: Steven M. Kaplan, Costas A. Housing, and Urban Affairs on October 29. The hearing was one of several designed • Analyzed licensing requirements for Avrakotos, David L. Beam, Stacey L. Riggin, to examine housing finance reform and the third-party processors and underwriters, Dana Lopez essentials of a functioning housing finance off shore mortgage servicers, March 26, 2013 system in the committee’s continuing commercial lenders, consumer lenders, Drilling Down on RESPA: How to Comply deliberations over the fate of Fannie Mae financial advisors, sales finance Presented by: Phillip L. Schulman, and Freddie Mac and other provisions in companies, collection agencies, debt Holly Spencer Bunting the proposed Housing Finance Reform and buyers, loan modification activities, real April 23, 2013 Taxpayer Protection Act of 2013. estate brokering activities, and online MBA Compliance Essentials: RESPA I Webinar lead aggregators. Presented by: Phillip L. Schulman • Assisted clients to obtain origination, July 9, 2013 ALERTS AND PUBLICATIONS servicing, money transmitter, collec- Financial Services Update MBA Compliance Essentials: National Servicing tion agency, sales finance, commercial Financial Services Alert Standards Webinar lender, consumer lender, and mortgage By: Jim Bulling, Andrea Beatty, Abhishek Bansal, Presented by: Nanci L. Weissgold, David A. broker licenses in connection with asset Daad Soufi Tallman, Kerri M. Smith acquisitions, corporate restructurings, February, 2013 July 10, 2013 and de novo entities. Careful What You Wish For — United States Getting Ready for QM: Pointers on Points • Assisted clients in maintaining and Supreme Court Rules that Prevailing Defendants and Fees, Fair Lending, Checklists and Other renewing all manner of state licenses; in FDCPA Cases May Recover Costs Without QM Issues filing periodic and annual state reports, Having to Show that Case Was Brought Presented by: Jonathan D. Jaffe, including the MCR; amending and in Bad Faith Nanci L. Weissgold correcting NMLS Account Records; and Consumer Financial Services Alert July 23, 2013 assisting in preparing replies to audits By: Steven M. Kaplan, Gregory N. Blase or examinations of licensees. The New Responsible Business Conduct March 1, 2013 Guidelines and Party Cooperation in HUD Final Rule on Disparate Impact Under Enforcement Investigations: Will the CFPB the Fair Housing Act WEBINARS Give Credit Where Credit Is Due? Consumer Financial Services Alert What the F? Presented by: Melanie Brody, Carol Elder Bruce, By: Melanie Brody, Andrew C. Glass, The Government’s aggressive prosecutions under Michael J. Missal, Stephanie C. Robinson Paul F. Hancock, Tori K. Shinohara the False Claims Act and FIRREA July 30, 2013 March 12, 2013 Presented by: Walter P. Loughlin, Michael J. Legal Challenges for Cross Border Payment Missal, Phillip L. Schulman Systems and Consumer Financial Services January 16, 2013 Presented by: Steven M. Kaplan, David L. Beam, Ability-to-Repay, QM, and Points/Fees: Andrea Beatty, Mary Baker, Sean P. Donovan-Smith What You Really Need to Know October 16, 2013 Presented by: Kristie D. Kully, Phillip L. Schulman, Jonathan D. Jaffe, David A. Tallman January 30, 2013 “They are the go-to team when CFPB’s New Servicing Rules: Game Changer? Presented by: Nanci L. Weissgold February 13, 2013 discussing state and federal CFPB Final Servicing Standards Presented by: Nanci L. Weissgold, Krista Cooley, regulation in the mortgage arena...” Kerri M. Smith February 27, 2013 – Chambers USA 2013

Consumer Financial Services Group Highlights of 2013 Activities 7 More Paper? CFPB Revamps Disclosure When Almost is Not Good Enough Township of Mount Holly: The United States and Delivery Requirements for Valuations Consumer Financial Services Alert Supreme Court Considers Whether the Fair under ECOA By: Laurence E. Platt Housing Act Recognizes Disparate-Impact Liability Consumer Financial Services Alert June 24, 2013 Consumer Financial Services Alert By: Nanci L. Weissgold, Kathryn S. Williams By: Paul F. Hancock, Andrew C. Glass, Melanie Mandatory Data Breach Reporting Bill April 4, 2013 Brody, John L. Longstreth, Roger L. Smerage Introduced into Parliament September 4, 2013 Virtual Currency Under Federal Anti-Money Privacy Alert Laundering Laws: FinCEN Provides Guidance By: Andrea Beatty, Cameron Abbott, Jim Bulling, Financial Services under Consumer Financial Services Alert Mark Feetham, Jason Vongratsavai a New Liberal Government By: David L. Beam June 27, 2013 Financial Services Alert April 5, 2013 By: Andrea Beatty, Jim Bulling, Jason Guilty Unless Proven Innocent: FHA’s Potential Vongratsavai CFPB Solidifies Loan Originator Compensation New Enforcement Regime September 12, 2013 Restrictions, Dumps Zero-Zero Requirement Consumer Financial Services Alert Consumer Financial Services Alert Presented by: Phillip L. Schulman, Krista Cooley Rulemaking Dictating Loan Terms is Coalescing By: Melanie Brody, Jonathan D. Jaffe, July 11, 2013 around the CFPB’s Qualified Mortgage Standard, Kristie D. Kully, Eric Mitzenmacher but the Future of Loans Outside of This Standard Appeals Court Strikes Down Labor Department’s April 24, 2013 Remains in Question Interpretation Regarding Exempt Status of Consumer Financial Services Alert Insurance Coverage for CFPB Investigations Mortgage Loan Officers By: Laurence E. Platt, Stanley V. Ragalevsky, and Enforcement Actions Labor, Employment and Workplace Safety Alert Sean P. Mahoney Insurance Coverage Alert By: Thomas H. Petrides, John L. Longstreth September 17, 2013 By: Gregory S. Wright, Stephanie C. Robinson, July 11, 2013 Nanci L. Weissgold Crowdsourced Equity Funding in Australia Bibbidi Bobbidi Boo: Eminent Domain Needs More April 25, 2013 By: Russell Lyons, Andrea Beatty, Becki Tam than a Magic Wand to Overcome Title Defects September 24, 2013 Was Chicken Little an Optimist? Consumer Financial Services Alert Consumer Financial Services Alert By: Laurence E. Platt OAIC Releases Guidelines on Cross Border By: Jonathan D. Jaffe, Kristie D. Kully, David A. July 24, 2013 Disclosure and Direct Marketing Tallman, Andrew L. Caplan, Eric Mitzenmacher Privacy Alert OAIC Releases New Guidance on Australian May 23, 2013 By: Andrea Beatty, Cameron Abbott, Jim Bulling, Privacy Principles Abhishek Bansal Mandatory Notification a Step Closer Privacy Alert September 30, 2013 to Reality for Serious Privacy Breaches By: Andrea Beatty, Abhishek Bansal By: Cameron Abbott, Andrea Beatty, Rob Pulham, August 27, 2013 Court Says Lender Can’t Get No Miranda Skelley Satisfaction when Paying Down Existing Housing Finance Reform Efforts Heat Up May 27, 2013 Lender’s HELOC in Summer Session Commercial Disputes Alert CFPB’s RESPA Radar Pointed at Affiliated Consumer Financial Services Alert By: Robert E. Feyder, Matthew B. O’Hanlon Business Arrangements By: Kristie D. Kully, Andrew L. Caplan October 2, 2013 Consumer Financial Services Alert August 28, 2013 By: Holly Spencer Bunting Amendments Allow Insurers to Utilise June 17, 2013 Electronic Communication Channels Insurance Alert By: Cameron Abbott, Rob Pulham, John Hall October 2, 2013 HUD Issues QM Proposal for Comment: There is a “There” There Consumer Financial Services Alert By: Phillip L. Schulman, Jonathan D. Jaffe, Krista Cooley, Andrew L. Caplan October 4, 2013 Credit Law Regulatory Update — The Year in Review and What’s Next Consumer Financial Services Alert By: Andrea Beatty, Abhishek Bansal November 14, 2013

Consumer Financial Services Group Highlights of 2013 Activities 8 The CFPB Signals Revolutionary Changes OUR BLOG to the Collection Industry Consumer Financial Services Alert Since the December 2011 launch of our blog, Consumer By: Nanci L. Weissgold, Christopher G. Smith Financial Services Watch, members of our group have pro- November 21, 2013 vided timely information on legal and regulatory developments affecting consumer financial services procedures, including A Decision to Arbitrate in the Mountain State: new developments related to the CFPB and other topics. In The West Virginia Supreme Court of Appeals 2013, members of our team published nearly 100 posts on Rejects Retroactive Application of the Dodd- our blog on a variety of topics including the CFPB, mortgage Frank Act and Enforces Mandatory Arbitration lending and servicing, FHA/VA, UDAAP, litigation and enforce- Agreement in Residential Mortgage Financial Services Litigation and Commercial ment actions, and fair lending, just to name a few. Disputes Alert Please visit consumerfinancialserviceswatch.com to subscribe to By: R. Bruce Allensworth, Brian M. Forbes, our blog or to read our posts. Robert W. Sparkes November 26, 2013 Will Recent Auto-Dialer Decisions Help Rein in TCPA Litigation? ARTICLES TRAINING WORKSHOPS Financial Services Litigation Alert Recent Developments and What’s Next: Part 1 Hosted regulatory training workshops for by: Gregory N. Blase LexisNexis Financial Services Newsletter, (2013) franchisees of a national leasing company in four December 2, 2013 FSN 12(4) cities across Australia. The workshops covered Safe Harbor Means Safe Harbor: Sixth Circuit By: Andrea Beatty, Abhishek Bansal, the licensing and compliance requirements under Rejects Any Judicial Deference to HUD’s Sham Jason Vongratsavai Australian credit legislation. Affiliated Business Guidelines Recent Developments and What’s Next: Part 2 Hosted regulatory training workshops for up to 68 Financial Services Alert LexisNexis Financial Services Newsletter, (2013) general managers of one of the four major By: Phillip L. Schulman, Irene C. Freidel, FSN 12(5) Australian banks. The workshops form part of the David D. Christensen By: Andrea Beatty, Abhishek Bansal, compulsory training for the senior executives and December 9, 2013 Jason Vongratsavai are structured to provide a regulatory snapshot to The Wait is Over. The Anxiety Begins. The CFPB allow executives to better identify the regulatory Recent Developments and What’s Next: Part 3 Issues its Final Rule to Combine RESPA and TILA and compliance risks within the bank. LexisNexis Financial Services Newsletter, (2013) Mortgage Disclosures FSN 12(6) Consumer Financial Services Alert By: Andrea Beatty, Abhishek Bansal, By: Phillip L. Schulman, Holly Spencer Bunting Jason Vongratsavai December 12, 2013 OAIC Releases New Guidance on Australian ASIC Investigates Conduct of Property Privacy Principles Developments for Extending Payment Terms Privacy Law Bulletin, (2013) 10(1) PrivLB 12 By: Andrea Beatty, Justin Lethlean, By: Andrea Beatty, Abhishek Bansal Abhishek Bansal December 18, 2013 Book Review: Corporate Information and the Law by Leif Gamertsfelder Proposed FoFA Reforms to Ease Privacy Law Bulletin, (2013) 10(1) PrivLB 14 Regulatory Burden By: Andrea Beatty, Jason Vongratsavai Investment Management Alert By: Jim Bulling, Daniel Knight, Julia Baldi Consumer Credit and Privacy Reform Agenda December 24, 2013 LexisNexis Financial Services Newsletter, (2013) FSN 11(7) MBA Compliance Essentials Series on the By: Andrea Beatty, Abhishek Bansal Real Estate Settlement Procedures Act By: Philip L. Schulman, Holly Spencer Bunting Re-investing in Financial Services Compliance International Association of Consumer Law (IACL) Conference Paper By: Andrea Beatty June 2013 Regulatory Update—What’s Next and Year in Review By: Andrea Beatty October 2013

Consumer Financial Services Group Highlights of 2013 Activities 9 K&L Gates earned top honors as a

“POWERHOUSE” in two categories CLASS ACTIONS & TORTS and SECURITIES & FINANCE LITIGATION of the BTI Consulting Group’s annual Litigation Outlook survey. K&L Gates is one of only six law firms clients noted among the best in both areas.

Consumer Financial Services Group Highlights of 2013 Activities 10 CONSUMER FINANCIAL SERVICES PRACTICE CONTACT LIST K&L Gates’ Consumer Financial Services practice provides a comprehensive range of trans- actional, regulatory compliance, enforcement and litigation services to the lending and settle- ment service industry. Our focus includes first- and subordinate-lien, open- and closed-end residential mortgage loans, as well as multi-family and loans. We also advise clients on direct and indirect automobile, and manufactured housing finance relation- ships. In addition, we handle unsecured consumer and commercial lending. In all areas, our practice includes traditional and e-commerce applications of current law governing the fields of mortgage banking and consumer finance.

For more information, please contact one of the professionals listed below. Lawyers Boston Washington, D.C. R. Bruce Allensworth [email protected] +1.617.261.3119 Costas A. Avrakotos [email protected] +1.202.778.9075 Irene C. Freidel [email protected] +1.617.951.9154 David L. Beam [email protected] +1.202.778.9026 Stanley V. Ragalevsky [email protected] +1.617.951.9203 Holly Spencer Bunting [email protected] +1.202.778.9853 Brian M. Forbes [email protected] +1.617.261.3152 Melanie Brody [email protected] +1.202.778.9203 Andrew Glass [email protected] +1.617.261.3107 Krista Cooley [email protected] +1.202.778.9257 Sean P. Mahoney [email protected] +1.617.261.3202 Daniel F. C. Crowley [email protected] +1.202.778.9447 Phoebe Winder [email protected] +1.617.261.3196 Eric J. Edwardson [email protected] +1.202.778.9387 Gregory N. Blase [email protected] +1.617.951.9059 Steven M. Kaplan [email protected] +1.202.778.9204 Ryan M. Tosi [email protected] +1.617.261.3257 Phillip John Kardis II [email protected] +1.202.778.9401 Rebecca H. Laird [email protected] +1.202.778.9038 Charlotte Michael J. Missal [email protected] +1.202.778.9302 John H. Culver III [email protected] +1.704.331.7453 Laurence E. Platt [email protected] +1.202.778.9034 Amy Pritchard Williams [email protected] +1.704.331.7429 Stephanie C. Robinson [email protected] +1.202.778.9856 Phillip L. Schulman [email protected] +1.202.778.9027 Chicago Stephen G. Topetzes [email protected] +1.202.778.9328 Michael J. Hayes Sr. [email protected] +1.312.807.4201 Nanci L. Weissgold [email protected] +1.202.778.9314 Kris D. Kully [email protected] +1.202.778.9301 Dallas Emily J. Booth [email protected] +1.202.778.9112 David A. Tallman [email protected] +1.214.939.4946 Morey E. Barnes Yost [email protected] +1.202.778.9215 David Monteiro [email protected] +1.214.939.5462 Kathryn M. Baugher [email protected] +1.202.778.9435 Andrew L. Caplan [email protected] +1.202.778.9094 Miami Soyong Cho [email protected] +1.202.778.9181 Paul F. Hancock [email protected] +1.305.539.3378 Shanda N. Hastings [email protected] +1.202.778.9119 Anaxet Y. Jones [email protected] +1.202.778.9414 New York Rebecca Lobenherz [email protected] +1.202.778.9177 Elwood F. Collins [email protected] +1.212.536.4005 Eric Mitzenmacher [email protected] +1.202.778.9127 Steve H. Epstein [email protected] +1.212.536.4830 Tori K. Shinohara [email protected] +1.202.778.9423 Drew A. Malakoff [email protected] +1.216.536.4034 Kerri M. Smith [email protected] +1.202.778.9445 Kathryn S. Williams [email protected] +1.202.778.9122 Pittsburgh Christopher G. Smith [email protected] +1.202.778.9405 Melissa J. Tea [email protected] +1.412.355.8385 Jay M. Willis [email protected] +1.202.778.9056

San Francisco Professionals Jonathan Jaffe [email protected] +1.415.249.1023 Government Affairs Advisor / Director of Licensing Amanda D. Gossai [email protected] +1.415.882.8020 Washington, D.C. Stacey L. Riggin [email protected] +1.202.778.9202 Seattle Holly K. Towle [email protected] +1.206.370.8334 Regulatory Compliance Analysts Sydney Washington, D.C. Andrea P. Beatty [email protected] +61.2.9513.2333 Dameian L. Buncum [email protected] +1.202.778.9093 Abhishek Bansal [email protected] +61.2.9513.2300 Teresa Diaz [email protected] +1.202.778.9852 Jason Vongratsavi [email protected] +61.2.9513.2300 Robin L. Gieseke [email protected] +1.202.778.9481 Brenda R. Kittrell [email protected] +1.202.778.9049 Dana L. Lopez [email protected] +1.202.778.9383 Patricia E. Mesa [email protected] +1.202.778.9199 Daniel B. Pearson [email protected] +1.202.778.9881 Jeffrey Prost [email protected] +1.202.778.9364 12492

Consumer Financial Services Group Highlights of 2013 Activities 11 Anchorage Austin Beijing Berlin Boston Brisbane Brussels Charleston Charlotte Chicago Dallas Doha Dubai Fort Worth Frankfurt

Harrisburg Hong Kong Houston London Los Angeles Melbourne Miami Milan Moscow Newark New York Orange County Palo Alto Paris Perth Pittsburgh Portland Raleigh Research Triangle Park San Diego San Francisco São Paulo Seattle Seoul Shanghai Singapore

Spokane Sydney Taipei Tokyo Warsaw Washington, D.C. Wilmington

K&L Gates practices out of 48 fully integrated offices located in the United States, Asia, Australia, Europe, the Middle East and South America and represents leading global corporations, growth and middle-market companies, capital markets participants and entrepreneurs in every major industry group as well as public sector entities, educational institutions, philanthropic organizations and individuals. For more information about K&L Gates or its locations, practices and registrations, visit www.klgates.com.

This publication is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer.

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