Author: Nicole Jessen

Facts: A minor received settlement proceeds after suffering a trauma. A guardian was appointed to oversee the proceeds. Later, the minor’s parents became delinquent on their mortgage. The guardian purchased the home for the outstanding balance of the mortgage from the settlement proceeds in the guardian’s own name. The guardian then transferred title to the minor. The guardian claimed, on the minor’s behalf, a first-time homebuyer’s credit on the minor’s federal income tax return.

Facts: A borrower obtained a construction loan from a lender. The lender did not properly disburse construction funds, delaying construction and causing the borrower to incur increased costs. Later, the lender went into Federal Deposit Insurance Corporation (FDIC) receivership and its assets including all loans and commitments were purchased by a second lender under a purchase and assumption (P&A) agreement. An abridged version of the P&A agreement was published on the FDIC’s website, stating the second lender only purchased the failed lender’s assets and did not assume liabilities associated with borrower claims arising out of the failed lender’s lending activities.