Legal Blog

This Month in Compensation and Compliance Matters

Each week, labor and employment attorney Ari Karen writes about the latest hearings and litigation in the financial sector, and offers his viewpoint on diverse compliance and compensation matters. Whether you run a business, work for a financial institution, or are involved in an employment dispute, Mr. Karen provides an important point-of-view on our nation’s volatile regulatory environment. Missed December’s Compensation and Compliance Matters? Catch up with this article round-up:

New Lawsuit Creates New Danger for HUD Foreclosures

An Ohio-based legal aid group recently filed a complaint against lenders that neglect to take required loss mitigation steps prior to foreclosing on Department of Housing and Urban Development loans. The lawsuit alleges such lenders have violated the False Claims Act. Mr. Karen advises lenders take the necessary pre-foreclosure loss mitigation measures—before waiting to see if more “copy-cat claims” are filed in other jurisdictions—in his December 1st article for National Mortgage News.

Don’t Get Burned by Joint Marketing RESPA Violations

When two parties share advertising materials, complex legal risks abound. Even a cost as seemingly negligible as an internal email could trigger a RESPA violation “if done by a mortgage bank at no-cost exclusively for the benefit of Realtors.” Mr. Karen offers insight on sharing advertising expenses, evaluating the relative costs and benefits, and more in his article from December 8th.

Whose Email Is It Anyway

Employers can no longer prevent employees from using company email accounts to send non-work-related messages, except in highly particular circumstances, thanks to a recent ruling by the NLRB. As the latest in a series of decisions expanding the Board’s influence beyond unionized employees, the Purple Communications case represents a radical shift in the rules regarding workplace speech. How should you update your email policy? Get the details here.

Consumer Financial Protection Bureau Sues Sprint Over Charges from a Third Party

Last month, the Consumer Financial Protection Bureau announced it would take action against popular wireless provider Sprint, accusing the company of billing its customers for fraudulent third-party charges. The high-profile (and by now, familiar) case underscores the CFPB’s tendency to hold institutions accountable for insufficient oversight of third-party vendors. Read Mr. Karen’s full interpretation of the case, and its implications for financial institutions, here. If you have any questions about these or other compliance and compensation matters please contactAri Karen at:

akaren@offitkurman.com  | 240.507.1740

Bank Manager ReimbursementsAri Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide.

Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others.

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