California Federal Judge: Homeowners’ Loan Modification Claims Were Preempted

(April 21, 2016, 9:00 AM EDT) -- LOS ANGELES — A couple’s claims under the California Homeowner’s Bill of Rights Act (HBOR) concerning their alleged denial of mortgage modification were preempted by Home Owners Loan Act (HOLA), a California federal judge ruled April 11 (Mike Arriola, et al. v. Flagstar Bank, et al., No. 15-9744, C.D. Calif.; 2016 U.S. Dist. LEXIS 49245).

(Order available. Document #85-160510-002R.)

Mike Arriola took out a mortgage in the amount of $185,000 on Feb. 6, 2008, for his primary residence. Arriola defaulted on the loan, and on June...
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