In this three-part series, Stites & Harbison is examining
the expansion of notes sales in recent years. The first part of this series discussed the
reasons behind this expansion, including the surplus of
under-performing notes post-2007, lenders' preference for note
sales over expensive foreclosure proceedings, and the
government's current focus on note sales' potential
rejuvenating effect on struggling communities. The second part delineated the note transfer
process and pointed out potential pitfalls in note sale
transactions. Here, the third and final part of the series will
evaluate the OCC bulletin addressing note sales and providing
guidelines for selling lenders.
In August 2014, the Office of the Comptroller of the Currency
("OCC") released a bulletin providing guidance to banks
"on the application of consumer protection requirements and
safe and sound banking practices to consumer debt-sale arrangements
with third parties (e.g., debt buyers) that intend to
