This piece originally appeared in the August 2024 edition of MortgagePoint magazine, online now.
Kahane & Associates PA is a full-service law firm based in Sunrise, Florida, that represents secured and unsecured creditors and provides a full range of legal industry, from foreclosure and bankruptcy representation to litigation, evictions, collections, loss mitigation, and REO closings.
A member of the Legal League, a professional association of financial services law firms, Kahane & Associates reaches beyond the traditional legal advisor role by incorporating a business-minded approach to its practice. The Kahane & Associates team is dedicated to finding innovative ways to assist its clients in significantly reducing the costs of default servicing. The primary goal of the firm is to provide clients with the highest quality legal representation and the finest in personal service in the industry.
MortgagePoint had a chance to catch up with Robert S. Kahane Esq., the firm’s Founder and Managing Partner, to discuss recent trends in the foreclosure and bankruptcy space. Kahane has more than 30 years of experience representing institutional mortgage lenders and servicers and is a recognized authority and frequent speaker on legal and compliance issues related to loan servicing process enhancements. Kahane is a member of the Florida Bar; Washington, D.C. Bar; and the Real Estate Property Sections of the Florida Bar.
Q: What are the biggest challenges of interacting with borrowers who are undergoing bankruptcy or foreclosure proceedings?
Robert S. Kahane: Interacting with borrowers in bankruptcy or facing foreclosure presents several challenges. Notably, there’s often significant emotional distress involved, as these situations directly impact individuals and families.
Also, navigating the complex legal and financial landscape requires sensitivity and expertise to ensure compliance with legal requirements while also exploring options for resolution that benefit both parties. Effective communication is crucial, but can be hindered by stress and uncertainty on the part of borrowers.
Balancing the need to protect the lender’s interests with the obligation to treat borrowers fairly requires a delicate approach to negotiations and legal proceedings. Fostering strong communication and transparency with borrowers are essential to effectively navigating the default and collection landscape. By integrating these practices, we not only mitigate operational, regulatory, and reputational risks for our clients, but also enhance loss mitigation resolutions, ultimately driving sustainable business growth because the goals of our clients are consistently achieved.
Q: How did you first get your start in the industry?
Robert S. Kahane: I began my career in consumer finance litigation shortly after graduating from law school. Initially drawn to the intricate intersection of real estate law and financial regulations, I found my niche representing lenders, servicers, and debt buyers in matters related to lending, collections, and compliance. Early experiences and successes handling secured and unsecured collection matters and navigating bankruptcy proceedings solidified my commitment to this specialized field. The dynamic nature of consumer finance law initially attracted me, given my background and degree in economics. It offers a blend of regulatory challenges, finance complex litigation, and opportunities to advocate for clients facing significant financial implications. As a legal and business strategist, I saw an opportunity to address an unmet need, helping clients navigate the evolving regulatory landscape in an area critical to lenders, servicers, investors, and debt buyers.
Q: What are the trends you see at play in the bankruptcy sector right now?
Robert S. Kahane: The post-COVID-19 inflationary cycle, driven largely by increased medical costs, credit card debt, and housing-related costs, has caused an uptick in consumer bankruptcy filings, particularly Chapter 7 filings. Court-referred loss mitigation mediations, as well as cramdowns and lien strips, are declining in number due to the general appreciation of property values in Florida. Sub Chapter V (Chapter 11) filings have been on an upswing since COVID-19, especially for debtors with multiple real estate assets though the eligibility limits were recently decreased due to a “sunset” provision effective June 21, 2024, which may impact on this trend.
Lastly, there has been a noticeable trend towards more borrower-friendly interpretations of bankruptcy laws, emphasizing consumer protections and avenues for debt restructuring. Courts are increasingly scrutinizing lender and servicer practices, particularly concerning foreclosure proceedings, which necessitates a proactive approach to compliance and litigation strategy.
Q: How has your firm navigated opportunities to evolve and streamline processes in the current marketplace?
Robert S. Kahane: Leveraging and deploying state-of-the-art technology has been a cornerstone of the firm’s business philosophy. Technology serves as a critical tool to enhance efficiencies, service, and performance, while minimizing operational, reputational, and regulatory risk.
The firm’s proprietary case management system is singularly the most comprehensive, scalable default case management platform available. Additionally, we continuously invest in professional development to ensure our team remains at the forefront of legal developments and best practices.
The industry tenure of the firm’s attorneys and staff is truly unrivaled, with the firm’s 11 attorneys averaging 24 years of practice and paralegals averaging 21 years of industry experience. No other firm in Florida can come close to the technology our firm deploys and experience level of the firm’s team that took Kahane & Associates more than 20 years to build.
Q: What tools do you feel any legal expert needs to survive and thrive in today’s marketplace?
Robert S. Kahane: Adaptability is crucial in today’s consumer finance litigation landscape. A strong foundation in both legal expertise and industry knowledge is essential. Additionally, leveraging technology to enhance efficiency and maintain compliance, while delivering exceptional client service is non-negotiable. Effective communication skills and a proactive approach to problem-solving are also key to navigating the complexities of the consumer finance industry.
Q: What advice would you give to any legal professionals looking to break into the foreclosure compliance space today?
Robert S. Kahane: I would advise aspiring professionals to gain a solid understanding of both the legal frameworks and industry practices governing mortgage lending and foreclosure.
Building relationships with key stakeholders, such as lenders, regulators, and consumer advocacy groups, can provide invaluable insights. Our firm leverages and deploys state-of-the-art technology to navigate opportunities and challenges.
Our business philosophy is based on the premise that strategic investments in talent and technology are the cornerstones of success for our clients and our firm.
Q: Are there any current major legal cases that could have a significant impact on the industry?
Robert S. Kahane: Several pending cases are poised to impact mortgage banking law if the lender/servicer does not prevail, particularly those addressing the interpretation of consumer protection statutes and lender liability in foreclosure proceedings. These cases could potentially impact industry standards and influence future regulatory developments.
Q: What benefits of Legal League membership would you highlight as reasons to join?
Robert S. Kahane: Membership in Legal League provides unparalleled networking opportunities with industry peers, access to innovative resources on regulatory compliance, and participation in thought leadership forums that shape industry practices. It is a vital platform for staying informed, influencing policy, and enhancing professional development in the mortgage banking sector.
Q: What would you chalk up as your greatest professional accomplishment to date?
Robert S. Kahane: My greatest professional accomplishment has been successfully leading significant operational process management changes for the firm’s national, regional, and Florida-based representative clients. These changes not only safeguarded client interests, but also minimized risk, while effecting notable efficiencies which afforded our clients the opportunity to realize significant reductions in the servicing and holding costs of their respective default portfolios. In addition, I am proud of our firm’s consistent and ongoing investment in professional development, training, and cutting-edge technology. The ROI is exciting and fulfilling as our lawyers are truly best-of-class in the industry.
The post Facing the Foreclosure and Bankruptcy Challenges of Today first appeared on The MortgagePoint.
